Market Update - Annual General Meeting

26 May 2010
Embargo 11am


                                 MARKET UPDATE
                             ANNUAL GENERAL MEETING

At Providence Resources Plc's ("Providence" or the "Company") Annual General
Meeting held this morning in Dublin, shareholders received a comprehensive
update on the Company's activities and on its future plans - the key highlights
of which included:


PRODUCTION

Production rose by 28% in 2009 to 557,927 BOE (2008: 433,625 BOE). These volumes
were primarily lifted by the successful Singleton X-10 development well, which
increased Singleton oil production by c. 50%, together with well recompletion
activities at VR 60 and first gas from the GAA-155, both situated in the US Gulf
of Mexico.

Looking ahead, the Company is planning a two well drilling programme for the
Singleton field, onshore UK, which is expected to increase production rates by
over 200 BOPD. The Company is also progressing a number of other production
enhancing initiatives including frac'ing and is currently implementing a gas to
wire project. In the Gulf of Mexico, a number of well re-completion activities
are planned at the MP19 and HI A-268 fields.


APPRAISAL/DEVELOPMENT

Significant progress has been achieved in advancing the company's portfolio of
appraisal and development assets during the reporting period, including:

Spanish Point/Burren, Offshore Ireland (56% interest)
A 3D seismic survey was acquired over the Spanish Point and Burren gas and oil
discoveries off the west coast of Ireland. These new 3D data are of excellent
quality and confirm the potential for further reservoir development above those
tested by the 35/8-2 Spanish Point discovery well within the existing
hydrocarbon bearing block. In addition, the data have provided a significant
improvement in the imaging of the overlying Burren oil discovery, which should
allow the partnership to more fully assess its full commercial potential. Final
seismic interpretation and mapping is currently ongoing, the results of which
will be released to the market in the near future. These data will be used as
the basis for future appraisal well planning as well as any third party
commercial discussions.


Dragon Field (Irish sector), Offshore Ireland (100% interest)
The latest mapping of the Dragon gas field situated in the St George's Channel
Basin has confirmed an in place resource potential of c. 100 BSCF, of which c.
25% of the field is located in Providence operated SEL 1/07. Providence is
planning to drill an appraisal well on the Dragon field during 2011 and has
commenced discussions with rig operators.

Baxter's Copse, Onshore UK (50% interest)
The Baxter's Copse oil discovery is located onshore UK, adjacent to the
Company's operated Singleton oil production facility. Providence operates the
acreage with partner Northern Petroleum. A recent resource assessment by RPS
Energy indicates that the Baxter's Copse oil field contains an in-place resource
potential of up to c. 15 MMBO. The partners are currently planning to develop
the field in 2011 using an initial extended reach development well to be drilled
from the Singleton pad. Subsequent wells will be drilled based on the initial
field production data.

AJE Field, Offshore Nigeria (6.7% interest)
During 2009, Providence confirmed that it's AJE Field in OML113, offshore
western Nigeria, had been deemed a commercial discovery. Accordingly, the
partners instructed Chevron, the technical advisor to the Operator, to prepare a
field plan of development. This work is currently ongoing.


EXPLORATION

Dunquin Prospect, Ireland (16% interest)
The Dunquin exploration prospect is located in the South Porcupine Basin,
offshore Ireland. The prospect is operated by ExxonMobil Exploration and
Production (Offshore) Ireland Limited and has associated P50 & P10 prospective
recoverable resources of c. 1.7 BBOE & c. 3.7 BBOE, respectively. Over the past
year, a number of notable events occurred which include the 40% farm-in by ENI
and the confirmation that an exploration well will be drilled. In that regard,
an agreed well location has now been finalised.

Dalkey Island Prospect, Ireland (50% interest)
In April 2010, the Company identified the Dalkey Island structure, offshore
Dublin, as a significant undrilled oil exploration prospect with an in-place
resource potential of c. 870 MMBO. The Company has begun discussions with rig
operators to source a suitable unit for a drilling campaign in 2010/11.

Orpheus Prospect, Ireland (100% interest)
The Orpheus exploration prospect lies beneath the Dragon gas field which
straddles the Irish/UK Median Line. As part of the Dragon appraisal well, the
deeper Orpheus prospect, with an estimated volume of c. 290 BSCF, will also be
drilled.



EXOLA

In early 2010, Providence established EXOLA, a Special Purpose Vehicle (SPV)
focussed on the appraisal and development of heavy and unconventional oil
offshore Ireland. This new entity manages a number of Providence assets, where
there have been a number of key developments recently, including:

Helvick Unmanned Production Buoy Project (72.5% interest)
In May 2010, the Company announced it had entered into an agreement with
Unmanned Production Buoy Limited to assess the development feasibility of
utilising its technology on the Helvick Field offshore Ireland. The in place
resource potential of the Helvick field is c .10 MMBO and there are currently
three wells available for re-entry on the field. A successful outcome from this
study could result in a fast-track approach to first oil from Helvick.

Baltimore Heavy Oil Project (60% interest)
In February, the Company was awarded a Licensing Option over the Baltimore heavy
oil discovery off the south coast of Ireland. The Baltimore discovery is
estimated to contain up to c. 300 MMBO in place and similar accumulations are
currently being actively assessed for development in the UK North Sea. In April,
the company announced that it had successfully farmed out a 40% interest in the
project to Nautical Petroleum, who is an offshore heavy oil player in the North
Sea. As part of the farm-in agreement, Nautical has agreed to carry out a
development assessment study of the Baltimore discovery.

Ardmore Heavy Oil Project (72.5% interest)
In May 2010, the Company announced that it had completed a resource assessment
of the heavy oil potential of the Ardmore field, offshore southern Ireland. This
work indicated an in-place resource potential of up to c. 230 MMBO. Providence
and its co-venture partners are currently seeking an industry heavy oil partner
to joint venture on this project.


EIRGAS

EIRGAS is currently a 100% owned SPV focussed on the development of gas storage
and carbon capture and sequestration (CCS) opportunities. Whilst the Company
withdrew from its Option to acquire up to 40% of the Kinsale Head assets from
PETRONAS, EIRGAS continues to work on a number of other gas storage
opportunities, as follows:

Kish Bank (50% interest)
The Company recently completed its Ulysses Study, which was an assessment of the
gas storage and CCS potential of the Kish Bank Basin. A suitable site for gas
storage has been identified and in addition, further geotechnical studies have
confirmed that the basin could host an effective carbon storage capacity of c.
270 million tonnes.

Dragon (Irish sector) (100% interest)
Recent internal studies have suggested that the Dragon gas field could be
suitable for the development of an offshore gas storage site. Work on potential
development concepts is ongoing in tandem with well planning for the 2011 Dragon
appraisal/development well.

FORWARD DRILLING PROGRAMME

Providence has a number of operated well activities over the next 18 months.
These wells will target the Dalkey Island and Orpheus exploration prospect
whilst also appraising the Dragon gas field and assessing the salt cavern gas
storage potential of the Kish Bank Basin. Whilst no commitment has yet to be
made, there are also a number of potential production/development well
opportunities within the EXOLA portfolio.

In terms of non-operated wells, ExxonMobil continue to mature the Dunquin
prospect towards drilling, with the final well location now agreed and the
requisite site survey to be carried out as a precursor to drilling. Seismic
interpretation and mapping for appraisal wells on Spanish Point and Burren is
also ongoing and an update on the forward drilling programme will be provided as
appropriate.


Tony O'Reilly, Chief Executive of Providence, commented:

"During the period under review, Providence materially progressed a broad range
of projects across its entire portfolio. Against a back-drop of lower
commodities pricing, we managed to significantly increase production, whilst
also maturing a number of important appraisal and development projects towards
drilling.

"Looking ahead, Spanish Point/Burren together with the Dragon Field, form
cornerstones of our appraisal/development activity offshore Ireland, whilst
onshore UK, further production and appraisal drilling is planned for Singleton
and Baxter's Copse, respectively. In addition our current planning envisages a
number of key high impact exploration wells to be drilled including Dalkey
Island, Orpheus and Dunquin.

"My board and I look forward to updating you over the next year on what should
be a very exciting period ahead for Providence shareholders."


Contacts:
 Providence Resources P.l.c.   Tel: [phone]
 Tony O'Reilly


 Powerscourt                   Tel: [phone]
 Rob Greening/Lisa Kavanagh


 Murray Consultants            Tel: [phone]
 Pauline McAlester




Notes to Editors:


About Providence
Providence Resources P.l.c. is an independent oil and gas exploration company
traded on the AIM (London) and ESM (Dublin) markets. Providence's active oil and
gas portfolio includes interests in Ireland, the United Kingdom, the Gulf of
Mexico (USA) and Africa (offshore Nigeria). Providence's portfolio is balanced
between production, appraisal and exploration assets, as well as being
diversified geographically. Comprehensive information on Providence and its oil
and gas portfolio, including its annual reports and recent press releases, is
available from Providence's website at www.providenceresources.com

Glossary of Terms Used
BSCF Billion Standard Cubic Feet of Gas
MMBO Million Barrels of Oil
BOPDBarrels of Oil per Day
BOE Barrels of Oil Equivalent
BBOE Billion Barrels of Oil Equivalent (1 BOE = 6,000 SCFG)

SPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007 has been used in
preparing this announcement

Announcement
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 20 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.


                         PROVIDENCE - ASSETS BY REGION

Asset             Location          Operator      %       Type


IRELAND

Spanish Point     Porcupine Basin   Providence    56.0%   Gas development

Burren            Porcupine Basin   Providence    56.0%   Oil discovery

FEL 4/08          Porcupine Basin   Providence    56.0%   Oil and gas
                                                          exploration

Dunquin           Porcupine Basin   ExxonMobil    16.0%   Oil and gas
                                                          exploration

Drombeg           Porcupine Basin   ExxonMobil    16.0%   Oil and gas
                                                          exploration

Cuchulain         Porcupine Basin   ENI           3.2%    Oil and gas
                                                          exploration

Newgrange*        Goban Spur Basin  Providence    80.0%   Oil and gas
                                                          exploration

Dalkey Island     Kish Bank Basin   Providence**  50.0%   Oil exploration

Pegasus           NE Celtic Sea     Providence    100.0%  Oil and gas
                                                          exploration

Orpheus           NE Celtic Sea     Providence    100.0%  Oil and gas
                                                          exploration

Dionysus          NE Celtic Sea     Providence    100.0%  Oil and gas
                                                          exploration

Dragon (part)     NE Celtic Sea     Providence*** c.25.0% Gas development

Hook Head         Celtic Sea        Providence*** 72.5%   Oil and gas discovery

Dunmore           Celtic Sea        Providence*** 72.5%   Oil discovery

Helvick           Celtic Sea        Providence*** 72.5%   Oil and gas discovery

Ardmore           Celtic Sea        Providence*** 72.5%   Gas discovery

Barryroe          Celtic Sea        Lansdowne     30.0%   Oil discovery

Baltimore         Celtic Sea        Providence    60.0%   Oil discovery



* Subject to new licensing application
** Gas storage and CCS opportunities to be held through EIRGAS with exploration
held through Providence
*** Subject to license transfer from Providence Resources P.l.c. to either EXOLA
or EIRGAS


UNITED KINGDOM

Singleton         Onshore           Providence    99.1%   Oil and gas production

Baxter's Copse    Onshore           Providence    50.0%   Oil discovery

Burton Down       Onshore           Providence    50.0%   Oil and gas
                                                          exploration



UNITED STATES

High Island A-268 Gulf of Mexico    Peregrine     5.0%    Oil and gas production

Galveston A-155   Gulf of Mexico    Peregrine     10.8%   Gas production

Ship Shoal 252*   Gulf of Mexico    SPN           50.0%   Oil and gas production

Ship Shoal 253*   Gulf of Mexico    SPN           50.0%   Oil and gas production

Ship Shoal 267*   Gulf of Mexico    SPN           50.0%   Oil and gas production

Main Pass 19      Gulf of Mexico    Petsec        45.0%   Oil and gas 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

Ridge             Onshore Louisiana Brammer       30.0%   Gas production

* Earned interest through well bore participation



NIGERIA

AJE, OML 113      Offshore Nigeria  YFP/Chevron   6.7%    Oil and gas
                                                          development




[HUG#1418820]