Operational Update - Providence Completes Spani...

OPERATIONAL UPDATE

                        PROVIDENCE COMPLETES
                   SPANISH POINT 3D SEISMIC SURVEY


Providence Resources P.l.c., ('Providence') the London (AIM) and
Dublin (IEX) listed oil and gas exploration and development company,
is pleased to announce that it has successfully completed acquisition
operations on its Spanish Point 3D seismic survey. This 3D seismic
survey programme covered in excess of a c.300 km2 area primarily over
the Jurassic Spanish Point gas condensate discovery and was acquired
using the BOS Angler 3D seismic survey vessel. Providence has awarded
the data processing contract to WesternGeco Limited. Providence (56%)
operates the Spanish Point licence (FEL 2/04) on behalf of its
partners Chrysaor E&P Ireland (30%) and Sosina Exploration (14%).


Contacts:

Providence Resources Plc
Tel: [phone]
Tony O'Reilly, Chief Executive

Powerscourt
Tel: [phone]
Rory Godson/Elizabeth Rous

Murray
Consultants
Tel: [phone]
Pauline McAlester


Explanatory Notes

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 it 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. Comprehensive information on Providence and its oil
and gas portfolio, including all press
releases, annual reports and interim reports are available from
Providence's website at www.providenceresources.com.

About Spanish Point
Providence holds a 56% interest and is operator of FEL 2/04, which
covers blocks 35/8 & 9 situated in the
Porcupine Basin, off the west coast of Ireland. The blocks are
situated in 300-400 metres of water and are
located approximately 200 km off the coast. Spanish Point was
discovered in 1981 by Phillips Petroleum and a
consortium which included Atlantic Resources Plc, Providence's
predecessor company. The discovery well
(35/8-2) flowed c. 1,000 BOPD and c. 5 MMSCFGPD from a hydrocarbon
column of c. 1,400 ft in sandstones of Upper Jurassic age. However,
due to a combination of low commodity prices, high cost of
development and lack of an indigenous gas market and infrastructure
at that time, the project was not declared economic and the licence
was subsequently relinquished. Providence applied for and became
operator of the Spanish Point licence in November 2004 which has a 15
year-term. Providence's geological team carried out a geological and
geophysical analysis which supported and improved the 1981 post-drill
analysis. The combination of this new analysis, coupled with advances
in technology and an improved oil/gas price regime, suggest that a
commercial development of Spanish Point might be possible.

In August 2008, Providence, together with its partner Sosina, signed
a staged farm-out agreement with Chrysaor Holdings Limited, a
privately owned development led company. The terms of the farm-out
agreement provide for Chrysaor to conduct a significant appraisal
work programme on the Spanish Point discovery in return for a minimum
30% interest in Spanish Point. Chrysaor then has the option to earn
up to a maximum 70% interest in the event that two wells are
subsequently drilled on Spanish Point. The agreement is subject to
certain milestones being achieved with an initial commitment by
Chrysaor to fund the budgeted cost of a 3D seismic programme as
consideration for the initial 30% interest. Chrysaor may then
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.

The original 35/8-2 Spanish Point discovery well flowed c.1,000 BOPD
and c. 5 MMSCFGPD from one of four logged hydrocarbon bearing
intervals. Third party modeling of these well data has suggested that
an optimally placed and stimulated development well could flow at
significantly higher rates from all hydrocarbon bearing intervals.
The partners considered that the acquisition of a 3D seismic survey
over Spanish Point was vital in order to further enhance the detailed
understanding of the reservoir, as well as to optimise potential
future well placement. The survey was designed to accommodate future
time lapse 3D seismic surveying, which has been demonstrated to be
particularly effective in monitoring fluid movement during field
production.

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
BOPD                                                     Barrels of
Oil per Day
MMSCFGPD                                         Millions of Cubic
Feet of Gas Per Day

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

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