Providence Agrees to Farm Out Interest in Balti...

26 April 2009
Embargo 7am


    PROVIDENCE AGREES TO FARM OUT INTEREST IN BALTIMORE HEAVY OIL DISCOVERY,
                                OFFSHORE IRELAND


  * NORTH SEA HEAVY OIL SPECIALIST NAUTICAL PETROLEUM TO ACQUIRE 40% INTEREST


  * NAUTICAL TO FUND AND CARRY OUT BALTIMORE DEVELOPMENT FEASIBILITY  WORK
     PROGRAMME



Providence Resources P.l.c., ('Providence') the Irish oil and gas exploration
and production company, whose shares are listed in London (AIM) and Dublin
(IEX), is pleased to announce that it has agreed to farm out a 40% equity
interest in Licensing Option 10/1 to Nautical Petroleum plc ('Nautical').
Licensing Option 10/1 contains the Baltimore heavy oil discovery situated some
c. 30 kilometers offshore Ireland in the North Celtic Sea Basin in c.100 metre
water depth. Discovered in 1992, this 11o API heavy oil accumulation is
estimated to have an in place resource potential of up to c. 300 MMBO.

In return for the 40% equity stake, Nautical will fund and carry out a focused
work programme on the development feasibility of the Baltimore discovery.
Providence will retain a 60% equity interest, operated through its special
purpose vehicle, EXOLA Limited. Nautical is currently involved in a number of
similar heavy oil field developments in the UK North Sea including the Kraken
discovery, which they operate, and Mariner, which is operated by Statoil. The
farm-out transaction is subject to Irish governmental approval.

 Speaking today, Tony O'Reilly, Chief Executive of Providence, said:
"We are extremely pleased to have secured such a capable JV partner for the
Baltimore project so quickly following the award of the Licensing Option. We are
particularly pleased to be working with Nautical who have a real track record in
the development assessment of offshore heavy oil projects."

Steve Jenkins, Chief Executive of Nautical, said:
"We look forward to working with Providence and using our expertise in heavy oil
developments on this exciting discovery in this new arena."

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


 Powerscourt                   Tel: [phone]
 Rory Godson/Lisa Kavanagh


 Murray Consultants            Tel: [phone]
 Pauline McAlester


Notes to Editors

About Providence
Providence Resources Plc is an independent oil and gas exploration company
listed on the AIM market in London and on Dublin's IEX market. Providence's
active oil and gas portfolio includes interests in Ireland (offshore), the
United Kingdom (onshore and offshore), the United States (offshore) and West
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 all press releases, annual reports and interim reports are
available from Providence's website at www.providenceresources.com
<

http://www.providenceresources.com/>.

About EXOLA
EXOLA Limited is a special purpose vehicle established by Providence to invest
in heavy and unconventional oil developments and opportunities offshore Ireland
and the United Kingdom. EXOLA is currently owned 100% by Providence.

About Nautical Petroleum
Nautical Petroleum plc is developing significant heavy oil resources in the
United Kingdom Continental Shelf (UKCS) and in Europe. They operate the Kraken
discovery and hold a 35% interest. They are also a 26.67% partner in the Statoil
operated Mariner discovery. In addition, they hold significant equity interests
in number of exploration and appraisal blocks in the UKCS and France. Their aim
is to secure further heavy oil discoveries in the UKCS and EU through
acquisitions, farmins and licensing rounds. More information on Nautical can be
found on www.nauticalpetroleum.com

About Baltimore
The Baltimore discovery well (48/19-2) was drilled in 1992 on a Lower Cretaceous
structure with an areal extent of c.12 square kilometers. The well encountered a
c. 300' gross hydrocarbon bearing section at c. 3,000' TVDSS in sands of Lower
Cretaceous age which are similar to those producing at the nearby Kinsale Head
field. Oil recovered during testing was a heavy crude (c. 11o API) and reservoir
cores indicate excellent production potential with permeabilities of greater
than 3,000 mD and log derived porosities of c.27%. As the well was originally
targeting a gas prospect and given poor heavy oil economics at that time, the
well was subsequently plugged and abandoned.
Providence has carried out an initial evaluation of the resource potential of
the Baltimore discovery based on the available pertinent well data and published
subsurface mapping. This study indicates an in place resource potential of up to
c. 300 MMBO.

About Heavy/Unconventional Oil
Heavy oil is crude oil <

http://en.wikipedia.org/wiki/Crude_oil> which does not
flow easily as its density <

http://en.wikipedia.org/wiki/Density> or specific
gravity <

http://en.wikipedia.org/wiki/Specific_gravity> is higher than that of
light/conventional oil <

http://en.wikipedia.org/wiki/Light_crude_oil>s. Heavy
crude oil is defined as any liquid petroleum with an API gravity
<

http://en.wikipedia.org/wiki/API_gravity> of less than 20° which is mostly the
result of the oil <

http://en.wikipedia.org/wiki/Crude_oil> being derived from an
early mature source rock or else due to subsequent effects of bacteria
<

http://en.wikipedia.org/wiki/Bacteria>, water
<

http://en.wikipedia.org/wiki/Water> or air <

http://en.wikipedia.org/wiki/Air>
on a light oil which result in the loss of the lighter fractions
<

http://en.wikipedia.org/wiki/Fractions>. Heavy oil has received renewed
interest due to the recent increases in oil price as it provides a potential
significant source of new global oil reserves.

Announcement
This announcement has been reviewed by John O'Sullivan, Exploration Manager,
Providence Resources P.l.c. John holds a B.Sc. in Geology from University
College Cork, Ireland, an M.Sc. in Applied Geophysics from the National
University of Ireland, Galway and a M.Sc.in Technology Management from The
Smurfit School of Business at University College Dublin. John is presently
working part-time on a PhD dissertation at Trinity College, Dublin. John has
worked in the offshore business for 20 years and is a fellow of the Geological
Society of London. Definitions in this press release are consistent with SPE
guidelines.


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