Providence Grants Option to Star Energy Over Dr...

11 November 2010
Embargo 7am


          PROVIDENCE GRANTS OPTION TO STAR ENERGY OVER DRAGON LICENCE

  * STAR ENERGY GRANTED OPTION OVER 50% OF DRAGON LICENCE (SEL 1/07)


  * OPTION ALLOWS STAR ENERGY TO PARTICIPATE IN ANY POTENTIAL FUTURE
    APPRAISAL/DEVELOPMENT OF THE DRAGON GAS DISCOVERY


Providence Resources P.l.c. ('Providence'), the AIM and ESM listed exploration
and production company is pleased to announce that it has signed a 10 month
option agreement with Star Energy Group ("Star") in relation to its 100% owned
and operated Standard Exploration Licence (SEL) 1/07 ('Dragon Licence') in the
St George's Channel Basin, offshore south-east Ireland.

The Dragon licence is situated in c. 90 metre water depth and is located c. 40
km offshore, south east Ireland. The licence contains the mapped extension of
the UK Dragon gas discovery into Irish waters, as well as the deeper Orpheus and
Pegasus exploration prospects. The option agreement provides for Star to acquire
a non-operated 50% interest in the Dragon Licence in return for carrying out a
number of subsurface studies on the Dragon gas discovery. Should Star
subsequently exercise this option, Star will participate in the drilling of the
planned appraisal/development well on the Dragon discovery. This transaction is
subject to Irish governmental approval.

Contacts:

 Providence Resources Plc        Tel: [phone]
 Tony O'Reilly/John O'Sullivan


 Star Energy                     Tel: [phone]
 Roland Wessel


 Powerscourt                     Tel: [phone]
 Rob Greening/Lisa Kavanagh


 Murray Consultants              Tel: [phone]
 Pauline McAlester


 Cenkos Securities Plc           Tel: [phone]
 Joe Nally/ Nick Wells


 Davy                            Tel: + 353 (0)1 679 6363
 Stephen Barry




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 ESM
market. 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 atwww.providenceresources.com.

About Star Energy
Star Energy Group plc is an energy company with a primary focus on gas storage
development. Founded in 1999, Star Energy is the UK's second largest onshore oil
producer and one of the main developers of underground gas storage using
depleted oil and gas reservoirs. Star Energy employs over 150 people and has a
turnover in excess of £50 million per annum. In 2008, PETRONAS acquired 100% of
Star Energy. PETRONAS, wholly-owned by the Malaysian government, is a fully-
integrated oil and gas corporation and is ranked among FORTUNE Global 500's
largest corporations in the world.

About The Dragon Discovery
The Dragon gas discovery was made by Marathon Oil UK in 1994 with the drilling
of the 103/1-1 well in UK waters offshore SW Wales. Oil and gas were found in
Upper Jurassic Callovian and Oxfordian sands and tested at c. 20 MMSCFD and 120
BOPD. Subsequent drilling and 3D seismic data have suggested that the field
straddles the Irish-UK median line with a c. 25:75 split respectively. In-house
most likely deterministic estimates have indicated a in place resource level of
c. 100 BSCF. Scoping development options currently under consideration include
subsea tiebacks to either SE Ireland or to the LNG plants in Milford Haven SW
Wales.

Announcement
This announcement has been reviewed by John O'Sullivan, Technical Director,
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 and member of The Petroleum Exploration Society of Great
Britain. Definitions in this press release are consistent with SPE guidelines.

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


[HUG#1461345]








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Source: Providence Resources plc via Thomson Reuters ONE