Half-yearly report

Embargo 7.00 a.m. 30 September 2009 PROVIDENCE RESOURCES P.l.c. ("Providence" or the "Company") INTERIM REPORT AND FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2009 OPERATIONAL INFORMATION SINCE PERIOD END * KINSALE HEAD AREA, CELTIC SEA, OFFSHORE IRELAND * Exercised option to acquire 40% of Kinsale Head area assets from PETRONAS * Transaction doubles Providence's production to over 4,000 BOEPD * Gives Providence 40% ownership of Ireland's only operating gas storage facility * DUNQUIN, PORCUPINE BASIN, OFFSHORE IRELAND * ExxonMobil Farm out 40% interest to ENI * Firm well commitment declared by ExxonMobil, ENI, Providence and Sosina * New licence interest at Cuchulain with ENI * GULF OF MEXICO, OFFSHORE US * Commencement of gas production from the Galveston A-155 field * SINGLETON, ONSHORE UK * Development plan agreed to take UK production to over 1,000 BOEPD during 2010 * Drilling of new well (SNX-11) being planned for early 2010 * Gas-To-Wire project agreed to monetise c. 200 BOEPD of gas production * BNP PARIBAS * New $100 million senior secured reducing borrowing base facility * Arranged by BNP Paribas * Macquarie facility to be cancelled OPERATIONAL INFORMATION DURING PERIOD * SPANISH POINT, PORCUPINE BASIN, OFFSHORE IRELAND * Acquisition of 300 sq kilometre 3-D seismic survey * SINGLETON, ONSHORE UK * SNX-10 production well increased field oil production by c. 50% * OML 113, OFFSHORE NIGERIA * AJE field deemed commercial * DRAGON FIELD AREA, ST GEORGE'S CHANNEL, OFFSHORE IRELAND / UK * Additional acreage awarded * GULF OF MEXICO, OFFSHORE US * Successful re-completion programme completed at Vermillion 60 FINANCIAL INFORMATION FOR THE SIX MONTHS ENDING JUNE 30, 2009 * REVENUE * ¤10.5 million (H1 2008: ¤11.2 million) * Revenue down due to a combination of lower commodity prices and production levels being impacted by hurricanes * EBITDA * ¤ 5.3 million (H1 2008: ¤ 7.3 million) * RESULTS FROM OPERATING ACTIVITIES * ¤1.7 million (H1 2008: ¤5.0 million) * Includes a number of one-off hurricane related costs * Administration expenses down 13% * NET CASH PRODUCED FROM OPERATIONS * ¤2.9 million (H1 2008: ¤ 1.5 million loss) * NET LOSS * ¤6.6 million (H1 2008: Profit ¤3.25 million) * Loss includes ¤7.5 million of non cash items * Finance expenses of ¤7.3 million (H1 2008: ¤1.8 million) * ¤0.00263 loss per share (H1 2008: profit ¤0.00131) * PLACING OF SHARES * ¤16.9 million raised from UK institutions Commenting on today's results, Tony O'Reilly, Chief Executive of Providence Resources P.l.c. said: "Despite the tough global economic environment, the results for the first half of 2009 demonstrate a range of successful activities across the Company's broad portfolio. Most notable was the exercising of the Option to acquire a 40% interest in the Kinsale Head area assets from PETRONAS, the drilling of the Singleton SNX-10 development well, the deeming of AJE to be commercial, the farm out by ExxonMobil to ENI of a 40% interest in the Dunquin prospect and the subsequent decision by the ExxonMobil-led partnership to commit to an exploration well. "Providence is now active in four areas - oil and gas production, asset appraisal and development, high impact exploration, and gas storage - each of which is growing. Our extensive plans for field enhancement at Singleton, combined with our ongoing activities in the Gulf of Mexico, give us confidence that we will achieve our production target of over 3,000 BOEPD. This, combined with the attributable 2,000 BOEPD from the Kinsale Head assets, should take our overall production to over 5,000 BOEPD by 2011. "We remain convinced that this focus on production, combined with our strategy of unlocking value from existing development assets (such as AJE, Spanish Point and the Celtic Sea portfolio), will bring managed growth to our core businesses. The exploration portfolio has maintained its evolving momentum - as evidenced by this summer's farm out to ENI - and the subsequent decision by ExxonMobil to commit a well on the Dunquin licence is testimony to the world class qualities of the resource potential of this acreage. It also validates our commitment to building the largest portfolio of exploration acreage off the west coast of Ireland. "The EIRGAS transaction to acquire the Kinsale Head assets is a transformational deal for Providence. It allows us to capitalise on our extensive operational experience offshore Ireland and, with the assistance of PETRONAS' capabilities in gas production, storage and trading, it will substantially increase our daily production rates. Most importantly of all, it will see Providence enter the gas storage sector, which we see as a significant future growth area. "As we announced yesterday, we are delighted to have arranged a new $100 million financing facility with BNP Paribas, one of the world's leading natural resource banks. This demonstrates our growing maturity as a diversified E&P company, and gives us the flexibility to expand our core businesses. "We view the future with optimism and confidence. This is because our individual projects and our collective portfolio now exhibit a balanced risk profile ranging from production, storage and trading, through field appraisal and development to high impact exploration - all backed by world class equity and financial partners." Tony O'Reilly Chief Executive September 30th, 2009 Contacts: Providence Resources Plc Tel: +353 (0)1 2194074 Tony O'Reilly, Chief Executive Powerscourt Tel: +44 (0)207 250 1446 Rory Godson/ Elizabeth Rous Murray Consultants Tel: +353 (0)1 498 0300 Pauline McAlester Cenkos Securities Plc Tel: +44 (0)207 397 8900 Joe Nally/ Nick Wells Davy Tel: + 353 (0)1 679 6363 Eugenee Mulhern/ Stephen Barry The full Interim Report, Financial Statements and Company Outlook is set out on the attached pages. About Providence Providence Resources Plc is an independent oil and gas exploration and production company listed on the AIM market in London and on Dublin's IEX market. The Company was founded in 1997, but with roots going back to 1981 when its' predecessor company, Atlantic Resources Plc was formed by a group of investors led by Sir Anthony O'Reilly. Providence's active oil and gas portfolio includes interests in Ireland, the United Kingdom, the United States (Gulf of Mexico) and West Africa (Nigeria). Providence's portfolio is balanced between production, appraisal and exploration assets, as well as being diversified geographically. Further information on Providence and its oil and gas portfolio, including Annual Reports are available from Providence's website at www.providenceresources.com Announcement In accordance with the AIM Rules - Guidance for Mining and Oil & Gas Companies, the information contained in this announcement has been reviewed and approved by John O'Sullivan, Exploration Manager of Providence Resources P.l.c. John O'Sullivan is a Geology graduate of University College Cork and holds a Masters in Geophysics from The National University of Ireland, Galway. John also holds a Masters in Technology Management from the Smurfit Graduate School of Business at University College Dublin and is presently completing a dissertation leading to a PhD in Geology at Trinity College, Dublin. John is a Fellow of the Geological Society and a member of the Petroleum Exploration Society of Great Britain. He has 19 years experience in the oil and gas exploration and production industry and is a qualified person as defined in the guidance note for Mining Oil & Gas Companies, March 2006 of the London Stock Exchange. Glossary of terms used ALL FIGURES QUOTED ARE GROSS FIGURES, UNLESS OTHERWISE STATED BOPD Barrels of Oil per Day MMSCFGD Million Standard Cubic Feet of Gas per Day MMBO Millions of Barrels of Oil BOEPD Barrels of Oil Equivalent per Day BOE Barrels of Oil Equivalent (1 BOE = 6,000 SCFG) BSCF Billion Standard Cubic Feet of Gas BL Barrel SPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007 has been used in preparing this announcement LICENCE INTERESTS Asset Location Operator % Type IRELAND Kinsale Head* Celtic Sea Kinsale Energy 40.0% Gas production Ballycotton* Celtic Sea Kinsale Energy 40.0% Gas production Gas storage and South West Kinsale* Celtic Sea Kinsale Energy 40.0% trading Seven Heads* Celtic Sea Kinsale Energy 34.6% Gas production Oil and gas Hook Head Celtic Sea Providence 72.5% discovery Dunmore Celtic Sea Providence 72.5% Oil discovery Oil and gas Helvick Celtic Sea Providence 72.5% discovery Ardmore Celtic Sea Providence 72.5% Gas discovery Blackrock Celtic Sea Providence 72.5% Oil discovery Oil and gas Barryroe Celtic Sea Lansdowne 30.0% discovery Oil and gas Pegasus NE Celtic Sea Providence 100.0% exploration Oil and gas Orpheus NE Celtic Sea Providence 100.0% exploration Oil and gas Dionysus NE Celtic Sea Providence 100.0% exploration Dragon (part) NE Celtic Sea Marathon c.25.0% Gas development Spanish Point Porcupine Basin Providence 56.0% Gas development Burren Porcupine Basin Providence 56.0% Oil discovery Oil and gas FEL 4/08 Porcupine Basin Providence 56.0% exploration Oil and gas Dunquin Porcupine Basin ExxonMobil 16.0% exploration Porcupine Oil and gas Drombeg Basin ExxonMobil 16.0% exploration Oil and gas Cuchulain Porcupine Basin ENI 3.2% exploration Goban Spur Oil and gas Newgrange Basin Providence 16.0% exploration Oil and gas Kish Bank Kish Bank Basin Providence 50.0% exploration *Following the exercise of the Kinsale Option UNITED KINGDOM Oil and gas Singleton Onshore Providence 99.1%* production Baxter's Copse Onshore Providence 50.0% Oil discovery Oil and gas Burton Downs Onshore Providence 50.0% exploration *99.125% UNITED STATES Oil and gas High Island A 268 Gulf of Mexico Peregrine 5.0% production Galveston A 155 Gulf of Mexico Peregrine 10.8% Gas production Oil and gas Ship Shoal 252/253/267* Gulf of Mexico SPN 50.0% production Oil and gas Main Pass 19 Gulf of Mexico Petsec 45.0% production East Cameron 257 Gulf of Mexico SPN 12.5% Gas production West Cameron 333 Gulf of Mexico Mariner 32.5% Gas production Vermillion 60 Gulf of Mexico SPN 50.0% Gas production Onshore Ridge Louisiana Brammer 30.0% Gas production Main Pass 89** Gulf of Mexico Beryl 17.5% Gas production *Earned interest through well bore ** Back-in rights for 25% of 70% after pay out NIGERIA AJE, OML 113 Offshore YFP/Chevron 5.0% Oil and gas Nigeria development FINANCIAL HIGHLIGHTS * Financial Results for the Half Year 2009 * Share Placing * $100 Million Facility with BNP Paribas Financial Results for the Half Year 2009 Revenue for the first six months of 2009 was ¤10.5 million, down from ¤11.2 million in the first six months of 2008. This was due to hurricanes, which impacted production in the Gulf of Mexico, and lower commodity prices. We estimate that both Ship Shoal 253 and Galveston A-155 being offline impacted production rates by around 350 BOEPD, and the lack of production from Ship Shoal 253 accounted for oil sales volume being down 2.1%. Singleton oil production was up only 12.35% as X10 did not start producing until May 2009. Gas sales volumes were up 67% on the previous year, which were driven by six months of Triangle production in 2009 (versus three months in 2008) together with the Vermillion 60 work-over coming online in May 2009. Both Galveston A-155 and Singleton X10 are delivering ahead of expectations. The price of oil averaged $87.60/BL in the first half of the year, which included hedges in place, compared to the average price of $111.74 achieved in 2008, representing a fall of 21.6%. The decrease in gas prices was even greater, with prices averaging $6.32/MSCF, including the hedges in place, versus an average price of $10.78/MSCF in 2008, or a drop of 41.3%. The overall price achieved on a BOE basis in 2009 was $58.43 versus $89.68 for 2008, a drop of 34.8%. Without hedges, the overall price would have been $35.96/BOE. Cost of sales were ¤7.2 million versus ¤4.2 million, reflecting a number of one-off items. These included additional costs related to the hurricanes and higher insurance excess, and an increased abandonment cost for the Mobile 861 facility in the Gulf of Mexico. Administration expenses were down 13% to ¤1.4 million from ¤1.6 million due to a continued cost reduction programme. Overall, profit from operating activities fell from ¤5.0 million to ¤1.7 million. The single biggest cost variance in the interim accounts was the significant increase in financing costs from ¤1.8 million to ¤5.0 million, arising from a full six months of financing costs for Triangle and the costs of the convertible bond. In the corresponding period of 2008, Providence had only one month of financing costs for our Triangle acquisition and no costs associated with the convertible bond. After finance costs of ¤7.3 million, which included ¤2.1 million of a foreign exchange variance, the Company reported a net loss of ¤6.6 million compared to a profit of ¤3.3 million in 2008. In the period, the net loss included ¤7.5 million of non cash items. The Company continued to generate surplus cash with EBITDA at ¤5.3 million and cash infow from operating activities of ¤2.9 million, compared to a cash outflow of ¤1.5 million in 2008. Cash and cash equivalents at June 30th was ¤17.3 million. Total long term borrowings of ¤83.4 million compared to ¤40.4 million reflect the inclusion of the ¤42 million convertible bond issued in July 2008. Share Placing In June 2009, the Company announced the Placing of 431,883,450 new ordinary shares of ¤0.001 each at a price of sterling 3.3 pence per new ordinary share. The Placing, arranged through Cenkos Securities plc in London, raised £14.3 million (¤16.9 million) before expenses, with the proceeds being used to further strengthen Providence's balance sheet by reducing debt levels and providing working capital for future investments in revenue enhancing projects. $100 Million Facility with BNP Paribas Yesterday, the Company announced that it had arranged a new US$100 million senior secured reducing borrowing base facility with BNP Paribas. The proceeds of this new facility will be used to repay the drawn portion (US$56 million) of the Macquarie Facility and to fund Providence's general E&P business as well as its expansion into gas storage and trading through EIRGAS. The facility has a term maturity of September 2014 and is priced in accordance with other borrowing base facilities in the market. The US$250 million Macquarie facility will now be cancelled. OPERATIONAL HIGHLIGHTS - PRODUCTION Kinsale Head Gas Fields and Storage (40.0% Interest) * Exercised option to acquire 40% of Kinsale Head area assets from PETRONAS Earlier this month, the Company announced that its' wholly owned subsidiary, EIRGAS, had exercised an option with PETRONAS to acquire a 40% interest in the 100% operated Kinsale Head Area comprising the Kinsale Head, South West Kinsale and Ballycotton gas fields. As part of the same transaction, EIRGAS also exercised an option to acquire a 40% interest in the 86.5% operated adjacent producing Seven Heads gas field. Under the terms of the Option Agreement, EIRGAS is purchasing its' 40% stake in the Kinsale Head Area assets on the same pro-rata terms by which PETRONAS acquired its original 100% stake from Marathon Oil Corporation in April 2009. That transaction had a total value of US$180 million, effective from 1 January 2008. The EIRGAS transaction is subject to Irish regulatory approval and is expected to be completed in the first quarter of 2010. As a result of this transaction, Providence will become Ireland's largest indigenous gas producer and will see its daily production double to over 4,000 BOEPD. As Ireland's only operating gas storage facility, Kinsale Head has great strategic and commercial importance. Through its affiliation with PETRONAS, and by working with the experienced management team at Kinsale Energy, Providence now has an important role to play in leading the development of further gas production, gas storage and potential CO2 sequestration opportunities. Onshore UK - Singleton (99.125% interest) * Production - Plan to exceed 1,000 BOEPD by doing the following: * 2010 Drilling Plan * Production Enhancement * Gas Monetisation * Hydraulic Fracturing Production - Plan to exceed 1,000 BOEPD Following the successful SNX10 development well, which came on production in Q2 2009, oil production at the field increased by 250 BOPD (or 50%). Further work has now indicated that Providence can expect to exceed its stated objective of increasing field production to over 1,000 BOEPD during 2010. The production increase is expected to be achieved through a phased programme of activities on the field, as outlined below. 2010 Drilling Plan Recent technical studies have revealed a number of further infill drilling opportunities which would enhance both the production rates and ultimate reserve potential of the Singleton Field. Providence has high-graded a location in the western part of the south fault block for a new development well. Planning operations for drilling this new well during the first half of 2010 have commenced, and discussions are taking place with rig operators to secure a rig. It is planned that the well will be longer than the recent successful SNX-10 well, with an objective to intersect twice as much reservoir section. Studies indicate that initial flow-rates of up to c. 400 BOEPD could be achievable due to the extra reservoir exposure and the higher reservoir pressures expected in this area. Production Enhancement Providence continually works to maximise production and reserves from the existing production wells at Singleton. The Company has designed a major well production enhancement programme which it will carry out over the coming months. This includes acid stimulation aimed at increasing well productivity, thereby increasing oil rates and reserves. Further optimisation will be carried out on the artificial lift mechanisms on one of the wells, with a new jet pump configuration to be installed in Q1 2010 in order to maximise oil rate and reserve potential. The production enhancement programme is expected to yield up to c.100 BOEPD of increased production in the short term. Gas Monetisation At present, around 200 BOEPD of gas at Singleton is flared. Having completed its review of the gas monetisation project, Providence has concluded that the most economically beneficial manner in which to monetise the gas is now through a Gas-To-Wire (GTW) power generation scheme. This involves increasing the current onsite gas fired electrical generation capacity and exporting the power to the national grid. The initial phase of the GTW project is scheduled to be completed by the end of Q1 2010 and will result in the monetization of c. 60 BOEPD of gas. The final phase of the project should be operational by Q4 2010, which will increase gas monetisation to c. 200 BOEPD. Hydraulic Fracturing Providence has recently engaged industry fracture stimulation experts StrataGen (formerly Pinnacle Technologies) to undertake a study on hydraulic fracturing within the Singleton field. Pending the final outcome of the study, Providence plans to perform fracture stimulation in an existing production well during the first half of 2010. Fracture stimulation has the potential to dramatically increase oil production, with indications that up to a 3 fold increase in initial oil rate per well may be possible. Depending on the results, further wells may be included in the programme. Gulf of Mexico, Offshore US * Commencement of Production at Galveston A 155 * Vermillion 60 Production Boost * Future Plans * Enhancing Production Rates & Evaluating Drilling Opportunities * Re-instating Production Impacted by Hurricanes Commencement of Production at Galveston A 155 (10.8% interest) In August 2009, Providence's new Galveston Island A-155 gas field in the US Gulf of Mexico was successfully brought online with the first gas sales occurring at the end of that month. This new field, which is located c.100 kilometres off the US coast, and in which Providence holds a non-operated 10.8% working interest, underwent a fast-track development with first gas achieved within 17 months of discovery. The field has been developed with a dedicated unmanned production platform connected to a new 30 kilometre long gas export pipeline. Vermillion 60 Production Boost (50.0% Interest) In May 2009, the Company successfully re-completed a well at its Vermillion 60 (VR 60) field in which it holds a 50% working interest. Having re-entered the existing A7 well from the VR60 platform, production rates were increased some 30 fold to 10 MMSCFGD gross (600 BOEPD* net to Providence). Future - Evaluating Drilling Opportunities Following the earlier success of re-completion activities at Vermillion 60, a number of other re-completion opportunities are being evaluated throughout the Company's Gulf of Mexico portfolio. In addition, the Company has a number of drilling opportunities which are currently being examined for potential activity later this year, pending partner agreement and rig availability/rates. Future - Reinstating Production Impacted by Hurricanes The Company has a targeted programme to increase production rates from its portfolio in the Gulf of Mexico. Specifically, the Company is reinstating production shut in from last year's hurricanes. Of the three assets which were impacted, High Island A268 was brought back on stream in early 2009, the delayed Galveston A-155 project commenced production in August 2009, and Ship Shoal 253 is still undergoing final remedial work. At Ship Shoal 253, repairs to third party export pipelines have taken longer than anticipated, and it is now expected that production will recommence in mid Q4 at a rate of 250 BOEPD net to Providence. OPERATIONAL HIGHLIGHTS - DEVELOPMENT/APPRAISAL * Spanish Point, Porcupine Basin, Offshore Ireland * AJE Field, Offshore Nigeria * Celtic Sea Basin, Offshore Ireland * St George's Channel Basin, Offshore Ireland/UK Spanish Point- Porcupine Basin, Ireland (56.0% Interest) * 3-D Seismic programme completed In July, the Company completed a 3D seismic survey programme on its Spanish Point licence in the Porcupine Basin, offshore Ireland on behalf of its partners Chrysaor and Sosina. This survey was acquired using the BOS Angler 3D seismic survey vessel and covered an area of over 300 km2 - primarily over the Jurassic Spanish Point gas condensate discovery. Providence has since awarded the data processing contract to WesternGeco Limited. Under the terms of the previously agreed farm out, Chrysaor may undertake to finance the drilling of up to two appraisal wells where it will commit not less than 60% cost share, whilst also capping the other partners' cost share, to earn an additional interest of up to 40%, thereby reducing the other partners' stakes pro rata. We expect to be able to provide further updates on Spanish Point in the coming period. AJE Field, Offshore Nigeria (5.0% Interest) * AJE development deemed to be commercially viable In February 2009, the AJE Field was deemed a commercial discovery by the partnership comprising Chevron, Vitol, EER, YFP and Providence. The partnership subsequently authorised Chevron, as Technical Advisor to the Operator, to prepare a Development Plan for the AJE Field. This is presently ongoing. Celtic Sea Basin, Offshore Ireland (72.5% Interest) * Development studies underway Following last year's drilling programme, the Celtic Sea partnership is considering how best to move forward on a number of discoveries in the region. With the gas prospects now largely linked to any future development plans at Kinsale Head, of which Providence has now secured a 40% interest, the focus has shifted to how best to exploit the significant oil potential in the basin. A number of development studies have already been completed, and the Company is currently in discussion with an industry partner on the possible development of one of the proven oil fields. We hope to provide further updates over the coming months. St George's Channel Basin, Offshore Ireland (100.0% Interest) * SEL 1/07 Licence area expanded In March 2009, the Company was granted an increase in the areal extent of its 100% operated Standard Exploration Licence (SEL) 1/07 in the St George's Channel Basin, offshore south-east Ireland, by the Department of Communications, Energy and Natural Resources. This revised licence authorisation contains the mapped extension into Irish waters of Marathon's proven UK Dragon gas field, which was discovered in 1994. OPERATIONAL HIGHLIGHTS - EXPLORATION * Dunquin, Porcupine Basin, Offshore Ireland * Newgrange, Goban Spur Basin, Offshore Ireland * Drombeg, Porcupine Basin, Offshore Ireland * Cuchulain, Porcupine Basin, Offshore Ireland Dunquin, Porcupine Basin (16.0% Interest) * ENI Farms In for 40% Interest * Dunquin Well Commitment ENI Farms In for 40% Interest In August, 2009, the Company announced that ENI had farmed into Frontier Exploration Licence 3/04 ('Dunquin'). Under the terms of the farm-in agreement, ENI assumed a 40% interest in the Dunquin licence with ExxonMobil holding a 40% operated stake, whilst Providence and Sosina retained 16% and 4% equity positions, respectively. Dunquin Well Commitment Also in August 2009, the Company confirmed that the Dunquin partners - comprising the Operator, ExxonMobil, and partners, ENI, Providence and Sosina - had notified the Irish Department of Communications, Energy and Natural Resources that they have elected to enter the second phase of the licence. This second phase carries a firm well commitment within the Dunquin licence. Newgrange, Goban Spur Basin (16.0% Interest) The Newgrange Licence Option is 150 km south of the Dunquin Prospect, covering an area in excess of 4,000 sq. km. This Licensing Option is operated by Providence with the main prospect being Newgrange, which is a large four-way dip closed prospect extending over an area of around 1,000 sq km. Mean recoverable prospective resource potential for the Newgrange Prospect is c.10 TSCF. Newgrange is currently the subject of an ongoing farm out campaign. Drombeg, Porcupine Basin (16.0% Interest) ExxonMobil (80%), Providence (16%) and Sosina (4%) were awarded 13 blocks in the Porcupine Basin under the 2007 Irish Porcupine bidding round. These blocks lie close to and southwest of the Dunquin licence in water depths of c.2,000-3,000 meters and contain the Drombeg Prospect. ExxonMobil, as Operator, carried out a 2D seismic survey over the acreage in June 2008. These data are currently being evaluated and should help to better define the prospectivity of the Drombeg area. Cuchulain, Porcupine Basin (3.2% Interest) In August 2009, as part of the Dunquin farm in deal, ExxonMobil, Providence and Sosina took a cumulative 40% interest in ENI's Frontier Exploration Licence 1/99 (FEL1/99), with the equity split 36%, 3.2% and 0.8% respectively. FEL 1/99 covers a total of six offshore blocks (c. 1,500 sq kilometres) and contains the Cuchulain Prospect. ENI retains a 60% interest and is Operator of FEL 1/99. Kish Bank Basin and ULYSSES Project (50.0% Interest) In August 2008, Star/PETRONAS and Providence were awarded a three year Licensing Option over eight blocks in the Kish Bank Basin, offshore Dublin, and commenced the "ULYSSES Project" - a study to assess the potential for gas storage and CO2 sequestration of underground saline reservoirs in the Kish Bank Basin. The study is being carried out on a 50/50 joint venture basis. Separately, the partners have identified a large exploration prospect in the Kish Bank Basin called Dalkey Island, which is located in shallow waters some eight kilometres offshore Dublin. ENERGY AND THE ENVIRONMENT The Company is committed to supplying energy in an environmentally responsible manner with its ongoing exploration and development initiatives being carried out in compliance with all relevant environmental rules and regulations. OUTLOOK Providence has an extensive array of production, development and exploration assets, and continues to be partnered by a number of world class operators. We have recently added to our range of established activities by entering the gas storage and trading market - an area where we see enormous potential. On top of this, commodity prices have now rebounded from their lows at the beginning of 2009, and worldwide demand for energy is expected to resume its growth. These factors combined give us great confidence in the performance of our business and we believe that our shareholders have a truly unique investment platform and can look to the future with optimism. Tony O'Reilly Chief Executive September 30, 2009 Providence Resources Plc Condensed consolidated income statement For the 6 months ended 30 June 2009 6 months 6 months Year ended 31 to 30 to 30 December June 2009 June 2008 2008 Unaudited Unaudited Audited ¤'000 ¤'000 ¤'000 Continuing operations Revenue 10,464 11,237 24,814 Cost of sales (7,183) (4,157) (13,571) Gross profit 3,281 7,080 11,243 Administration expenses (1,431) (1,644) (2,784) Pre-licence expenditure (165) (453) (927) Impairment of exploration and evaluation assets - - (49,743) Profit/(loss) from operating activities 1,685 4,983 (42,211) Finance income 25 79 487 Finance expenses (7,290) (1,808) (8,294) (Loss)/profit before income tax (5,580) 3,254 (50,018) Income tax expense (1,005) (4) (1,175) (Loss)/profit for the financial period (6,585) 3,250 (51,193) (Loss)/ earnings per share (cent) Basic (loss)/earnings per share (0.263) 0.131 (2.060) Diluted (loss)/earnings per share (0.263) 0.125 (2.060) Providence Resources Plc Condensed consolidated statement of comprehensive income for the 6 months to 30 June 2009 6 months 6 months Year ended to 30 June to 30 June 31December 2009 2008 2008 Unaudited Unaudited Audited ¤'000 ¤'000 ¤'000 (Loss) / profit for the financial period (6,585) 3,250 (51,193) Foreign exchange translation differences 2,371 541 (4,443) Net change in fair value of available for sale equity instruments 40 (299) - Net change in fair value of available for sale equity instruments, transferred to income statement - 299 - Net change in fair value of cash flow hedges transferred to income statement (4,002) - (2,200) Cashflow hedges - net fair value movement (4,411) - 12,267 - related deferred tax 2,417 - (3,020) Total comprehensive (expense)/income (10,170) 3,791 (48,589) Providence Resources Plc Condensed consolidated statement of financial position As at 30 June 2009 30 June 30 June 31 December 2009 2008 2008 Unaudited Unaudited Audited ¤'000 ¤'000 ¤'000 Assets Exploration and evaluation assets 9,676 36,443 9,505 Development and production assets 84,410 78,285 78,172 Property, plant and equipment 172 133 193 Available for sale assets 259 660 219 Deferred tax assets 3,962 1,897 3,962 Derivative instruments 2,177 - 9,604 Total non-current assets 100,656 117,418 101,655 Trade and other receivables 4,111 9,133 5,412 Derivative instruments 138 - 463 Restricted cash 2,520 - 13,027 Cash and cash equivalents 17,327 3,300 9,664 24,096 12,433 28,566 Assets classified as held for sale 9,716 - 9,491 Total current assets 33,812 12,433 38,057 Total assets 134,468 129,851 139,712 Equity Share capital 14,609 14,172 14,172 Share premium 71,836 56,309 56,309 Capital conversion reserve fund 623 623 623 Convertible bond - equity portion 2,944 - 2,944 Singleton revaluation reserve 3,114 3,357 3,206 Foreign currency translation reserve (2,289) 324 (4,660) Share based payment reserve 1,801 1,279 1,597 Macquarie loan warrants reserve 5,641 5,633 5,641 Cashflow hedge reserve 1,051 (764) 7,047 Available for sale reserve 40 - - Retained earnings (91,401) (30,615) (84,908) Total equity attributable to equity holders of the Company 7,969 50,318 1,971 Liabilities Loans and borrowings 83,398 40,386 77,843 Deferred tax liabilities 16,447 11,490 16,001 Decommissioning provisions 5,565 4,948 4,762 Total non-current liabilities 105,410 56,824 98,606 Trade and other payables 16,596 8,030 27,638 Loans and borrowings 4,493 13,373 11,497 Derivative instruments - 1,306 - Total current liabilities 21,089 22,709 39,135 Total liabilities 126,499 79,533 137,741 Total equity and liabilities 134,468 129,851 139,712 Providence Resources Plc Condensed consolidated statement of cash flows For the 6 months ended 30th June 2009 Year ended 6 months 6 months 31 to 30 June to 30 June December 2009 2008 2008 Unaudited Unaudited Audited ¤'000 ¤'000 ¤'000 Cash flows from operating activities (Loss)/profit before income tax for the year (5,580) 3,254 (50,018) Adjustments for: Depletion and depreciation 3,607 2,365 7,398 Abandonment provision 673 - - Impairment of exploration and evaluation assets 165 453 50,670 Finance income (25) (79) (487) Finance expense 7,290 1,808 8,294 Equity-settled share based payment charge 205 311 629 Change in trade and other receivables 1,301 (4,599) (832) Change in trade and other payables (11,042) (5,426) 12,877 Change in restricted cash 10,507 - (13,073) Foreign exchange adjustments - 541 - Interest paid (4,224) (151) (3,212) Tax paid - - (4) Net cash inflow/(outflow) from operating activities 2,877 (1,523) 12,242 Cash flows from investing activities Interest received 25 79 487 Acquisition of exploration and evaluation assets (171) (5,916) (35,992) Acquisition of development and production assets (9,999) (48,086) (8,906) Acquisition of property, plant and equipment (44) (44) (131) Acquisition of available for sale assets (225) - (3,250) Acquisition of subsidiary undertaking - - (43,278) Net cash used in investing activities (10,414) (53,967) (91,070) Cash flows from financing activities Proceeds from issue of share capital 16,968 1,080 1,080 Payment of transaction costs (1,004) - - Repayment of loans and borrowings (7,245) - (12,034) Proceeds from drawdown of loans and borrowings 5,868 46,314 88,963 Net cash from financing activities 14,587 47,394 78,009 Net increase/(decrease) in cash and cash equivalents 7,050 (8,096) (819) Cash & cash equivalents at 1 January 9,664 11,396 11,396 Effects of exchange rate fluctuations on cash and cash equivalents 613 - (913) Cash and cash equivalents at 30 June 17,327 3,300 9,664 Providence Resources Plc Condensed consolidated statement of changes in equity for the six months to 30 June 2009 Share Share Capital Convertible Singleton Foreign Share Macquarie Cashflow Available Retained Capital Premium Conversion Bond - Revaluation Currency Based Loan Hedge for sale Earnings Reserve equity Reserve Translation Payment Warrants Reserve reserve Fund portion Reserve Reserve Reserve At 1 January 2009 14,172 56,309 623 2,944 3,206 (4,660) 1,597 5,641 7,047 - (84,908) Loss for the year - - - - - - - - - - (6,585) Currency translation - - - - - 2,371 - - - - - Share issued 437 15,527 - - - - - - - - - Share based payments - - - - - - 204 - - - - Transfer from Singleton revaluation reserve - - - - (92) - - - - - 92 Gain on available for sale assets - - - - - - - - - 40 - Cashflow hedge movement - - - - - - - - (5,996) - - At 30 June 2009 14,609 71,836 623 2,944 3,114 (2,289) 1,801 5,641 1,051 40 (91,401) Providence Resources Plc Condensed consolidated statement of changes in equity for the six months to 30 June 2008 Share Share Capital Convertible Singleton Foreign Share Macquarie Cashflow Available Retained Capital Premium Conversion Bond - Revaluation Currency Based Loan Hedge for sale Earnings Reserve equity Reserve Translation Payment Warrants Reserve reserve Fund portion Reserve Reserve Reserve At 1 January 2008 14,162 55,239 623 - 3,357 (217) 968 3,666 - - (33,865) Profit for the year - - - - - - - - - - 3,250 Currency translation - - - - - 541 - - - - - Macquarie Warrants - - - - - - 1,967 - - - Share issued 10 1,070 - - - - - - - - - Share based payments - - - - - - 311 - - - - Transfer from Singleton revaluation reserve - - - - - - - - - - - Gain on available for sale assets - - - - - - - - - - - Cashflow hedge movement - - - - - - - - (764) - - At 30 June 2008 14,172 56,309 623 - 3,357 324 1,279 5,633 (764) - (30,615) ---END OF MESSAGE--- This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

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