PROVIDENCE ANNOUNCES MAJOR US ASSET ACQUISITION

Embargo 7:00am
May 7, 2008
                                   
                                   
           PROVIDENCE ANNOUNCES MAJOR US ASSET ACQUISITION

  * Acquires Oil & Gas portfolio in US Gulf of Mexico for $67.5
    million (~ ¤43.5 million)
  * Portfolio currently generates c.1,300 BOEPD (net to Providence)
  * Asset acquisition to treble Providence production

Providence Resources P.l.c., the AIM and IEX listed exploration and
development company, announces that it has agreed to acquire a
portfolio of producing and development assets in the US Gulf of
Mexico from Triangle Oil and Gas Inc., ("Triangle") a private company
based in Lafayette, Louisiana. The transaction is subject to
regulatory approvals.
 
The portfolio of assets to be acquired represents all of Triangle's
material hydrocarbon assets and comprises interests in 8 producing
fields and 2 development assets. Within the portfolio, there are also
a substantial number of exploration opportunities. With cumulative
net current production of circa 6 MMSCFGD and 300 BOPD (~1,300
BOEPD), this transaction, in line with Providence's stated strategy,
trebles the Company's current daily production up to 2,000 BOEPD.
 
Under the terms of the transaction, Providence will acquire the
portfolio for a total consideration of US$67.5 million (approx. ¤
43.5 million), payable on completion. The transaction is being fully
financed through Macquarie Bank Limited, with whom Providence has a
US$ 250 million revolving credit facility. Additionally, Providence
has agreed to issue Macquarie Bank Limited with 10 million ordinary
shares and has granted Macquarie warrants to purchase 30 million new
ordinary shares in the Company at a subscription price of 12 cents
per share.
 
Commenting on the announcement: Mr. Tony O'Reilly Jnr., Chief
Executive, said:
 
"This acquisition is great news for Providence and its shareholders,
allowing it to substantially increase its daily production rates up
to 2,000 BOEPD, whilst also delivering on one of our stated corporate
objectives. Not only does this deal allow Providence to generate
significant cash flow from the existing production, but importantly,
there are substantial additional proven resources to be developed
within the portfolio. These operations will also build on and
complement our existing production from High Island A-268 and future
production from Galveston Island A-155. We look forward to growing
our presence in the US Gulf of Mexico and see this acquisition as a
springboard for future opportunities."
 
Contacts:
 
Providence Resources P.l.c.     Tel: [phone] 
Tony O'Reilly Jnr., Chief Executive 
  
Powerscourt         Tel: [phone]
Rory Godson/Elizabeth Rous
 
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. 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 (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.
 
In addition to the producing and development assets being acquired,
Providence has existing interests in 2 other operations in the Gulf
of Mexico, namely a 5% interest in High Island A268 - (in
production), a 10.8% interest in Galveston A-155 - (in
appraisal/development) and it continues to seek out other
opportunities in the Gulf of Mexico.
 
DEFINITIONS
 
BOPD - Barrels of Oil per Day
 
MMSCFGD = Million Standard Feet of Gas per Day
 
BOEPD = Barrels of Oil Equivalent Per Day
 
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 18 years and is a fellow of the Geological
Society of London and member of the Energy Institute. Definitions in
this press release are consistent with SPE guidelines.
 
ABOUT TRIANGLE
 
Triangle Oil and Gas Inc. was founded in Louisiana in 1998. It is a
privately owned independent oil and gas
company focused on operations in the shallow waters (0 - 300 feet) of
the central Gulf of Mexico. Triangle is centrally located in the gulf
coast region with its head office in Lafayette, Louisiana. The
Company is a qualified operator with the US federal government's
regulatory agency, the MMS.
 
Triangle has primarily generated its projects in house with its own
geological and geophysical prospecting operation. It has a team of
very experienced Gulf of Mexico personnel. The emphasis is on
carefully integrating engineering and geologic data to develop
bi-passed or new reserves in and around old fields. Triangle has a
proven track record of finding and producing commercial reserves.
Revenue from the assets to be acquired approximated US$ 25.0 million
in 2007.
 
Triangle operates the MO 861 property with the remainder of the
offshore interests being operated by established Gulf of Mexico
operators, SPN, Mariner, Petsec and Beryl. Brammer operates the Ridge
onshore property. The company holds interests in eight producing
blocks in federal waters and one onshore property in Louisiana. The
portfolio to be acquired by Providence comprises all of Triangle's
material hydrocarbon assets.
 

Asset                                       Interest Oil/Gas Operator
Ship Shoal - SS252/253/267                  ~50%*    Oil/Gas SPN
Main Pass - MP19                            45%      Oil/Gas Petsec
East Cameron - EC257                        12.5%    Gas     SPN
Mobile - MO861                              50%      Gas     Triangle
Vermillion - VR60                           50%      Gas     SPN
West Cameron - WC333                        32.5%    Gas     Mariner
Main Pass - MP 89 (back in Rights for 25%            Gas     Beryl
of 70%**)
Ridge (30%) - Onshore                       30%      Gas     Brammer
                                                              

* Interest is earned through each well bore.
** Back in rights means that Triangle has the right to take 16.8%
working interest in Main Pass 89 lease once the Operator, Beryl, has
achieved Project payout. Details on Project payout are still awaited
from the Operator. No consideration is payable by Triangle to acquire
this working interest.
 
 
 
 

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