Providence Resources P.l.c.: End of Year Tradin...

Embargo: 7:00am
22(nd) December 2011

                          PROVIDENCE RESOURCES P.l.c.
                      END OF YEAR TRADING STATEMENT, 2011


2011 HIGHLIGHTS

PRODUCTION

Singleton, Onshore UK
  * Production rate running at c. 900 BOEPD
  * Increase in audited oil reserve base by 44 % to 7.7 MMBO (2P)

DRILLING ACTIVITIES

Offshore Ireland, commencement of its multi-well, multi-year drilling programme.
This programme, which is the largest and most comprehensive in the history of
the State, represents an investment of upwards of $500 million by Providence and
its partners in a number of exploration and development wells in six different
basins offshore Ireland.

  * Appraisal drilling operation underway at Barryroe oil discovery, Celtic Sea


Onshore UK, commenced drilling of a new production well (X12) at the Singleton
field.  This is the third production well to be drilled over the past three
years.

KEY APPRAISAL ACTIVITIES

Barryroe, North Celtic Sea Basin
  * Conversion of Licensing Option 08/1 to Standard Exploration Licence 1/11
  * GSF Arctic III semi-submersible rig currently drilling 48/24-10 appraisal
    well
  * 240 sq km good quality 3D seismic survey acquired and processed
  * Memorandum of Agreement with Shell for oil off take sale and purchase
    agreement

Spanish Point, Main Porcupine Basin
  * Chrysaor exercised its option to increase its stake to 60.0% in FEL 2/04
  * Well commitment given on FEL 2/04 (Spanish Point) by partners
  * 220 sq km 3D seismic (Galleon Survey) acquired over FEL 4/08
  * Six new blocks awarded through Licensing Options under Irish Atlantic Margin
    Round

Dragon, St George's Channel Basin
  * Extension of the first phase of Standard Exploration Licence 1/07 to 31
    December 2012
  * Submittal of drilling proposal for 2012 well

KEY EXPLORATION ACTIVITIES

Dunquin, South Porcupine Basin
  * Farm-in by Repsol to Dunquin licence leading to revised equity percentages
    of:
ExxonMobil (27.5%), ENI (27.5%), Repsol (25.0%), Providence (16.0%) and Sosina
(4.0%)

Rathlin Island, Rathlin Basin
  * Formal award of Rathlin Island Licence Prospecting Licence 5/10 (onshore)

Dalkey Island, Kish Bank Basin
  * Conversion of Licensing Option 08/2 to Standard Exploration Licence 2/11,
    with well commitment given
  * Foreshore licence application underway for 2012 drilling
  * Geochemical study indicates presence of highly mature oil prone source rock

  * AMEC completed ULYSSES gas storage conceptual study

Irish Atlantic Margin Licensing Round
  * Bid and award of Licensing Options over 22 new blocks in four areas covering
    c. 5,000 sq km:
          -  Newgrange - Providence (40.0%), Repsol (40.0%), Sosina (20.0%)
          -  Drombeg - Providence (80.0%), Sosina (20.0%)
          -  Kylemore - Providence (66.6%), First Oil (33.3%)
          -  Spanish Point (South) - Providence (32.0%), Chrysaor (58.0%),
Sosina (10.0%)

KEY FINANCIAL ACTIVITIES

  * Raised $65.7 million in a share placing in March
  * Sold Gulf of Mexico offshore portfolio for consideration of up to $22
    million* in March
  * Refinanced BNP Paribas facility with Deutsche Bank $60 million pre-paid swap
    transaction in July
  * Agreed sale of interest in AJE asset, offshore Nigeria, for $16 million in
    September

*Consideration for sale of Gulf of Mexico assets was $15 million cash at
closing, plus potential for a further deferred $7 million dependent on
production levels.


PLANS  FOR  2012

Onshore UK
  * Conclude X12 drilling programme at Singleton and commission for production
  * Continue other production enhancement opportunities at Singleton
  * Advance Baxter's Copse development programme

Offshore Ireland
  * Complete drilling of 48/24-10 appraisal well on the Barryroe oil discovery
  * Continue with multi-well, multi-year drilling programme over six basins
    offshore Ireland
  * Complete drilling preparation work for other wells in the forward programme


Commenting on activity during 2011 and the future plans for 2012 and beyond,
Tony O'Reilly, Chief
Executive of Providence Resources P.l.c., said:

"2011 has been an extremely busy and productive year for the Company and its
partners. Whilst the highlight has undoubtedly been the commencement of the
biggest concerted drilling programme ever carried out offshore Ireland, there
has been widespread activity across all of Providence's functions and interests.

"The Company's balance sheet was substantially strengthened during the year by
the divestment of non-core assets in the Gulf of Mexico and Nigeria, a new
banking facility with Deutsche Bank and the success of the Company's largest
equity placing. We introduced new partners in the form of Repsol and First Oil,
who joined us in new licence ventures offshore Ireland, and we doubled our
acreage footprint in this region with the award of 22 new blocks under the
2011Atlantic Margin Licensing Round. In the UK, we remained focussed on our
objective of increasing our production rates at Singleton and, through a series
of initiatives, including the commencement of drilling of a new production well,
we have established a clear strategy that should see us take production levels
up to 1,500 BOEPD.   We are also evaluating the development pathway for the
Baxter's Copse oil discovery on the adjacent licence, in which we hold an equal
50% stake with Northern Petroleum.

"However, it was after much planning and preparation, Providence's year was
defined by the successful launch of its major drilling programme offshore
Ireland, representing an investment of upwards of $500 million by Providence and
its partners.  The spudding of an appraisal well on the Barryroe oil discovery
in November was a momentous occasion for the Company and its shareholders.
Whilst the drilling operations are still ongoing, last week we provided an
interim update where we confirmed that we are geologically on prognosis, with
the main oil bearing reservoir objectives lying ahead of the drill bit. We also
commented that the accuracy of the new 3D seismic data in mapping the overlying
gas reservoir section gives us confidence in relation to the delineation of our
underlying primary and secondary oil targets.

"The significance of the appraisal drilling at Barryroe should not be
underestimated, and the successful demonstration of a commercial flow rate
should not only unlock the substantial value of this particular asset, but
should also trigger a complete industry re-appraisal of the Irish offshore.
Other existing licences have also had further technical studies carried out, and
firm well commitments have been made on a number of assets including Dalkey
Island, Spanish Point, Dragon and Dunquin to be drilled in 2012 and beyond.

"Given recent industry advances in technology and pricing, as well as Ireland's
now established infrastructure and fiscal regime, it is our firm view that the
time has now come for Ireland's hydrocarbon potential to be realised.
Providence's shareholders have waited patiently for this moment and, as the
leading Irish based E&P company, with extensive acreage position, outstanding
technical capabilities and world class international partners, we are hopeful of
being able to create significant sustainable value for them over the period
ahead. "


Tony O'Reilly
Chief Executive
December 22(nd), 2011


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


 Powerscourt                      Tel: [phone]
 Lisa Kavanagh/Rob Greening


 Murray Consultants               Tel: [phone]
 Pauline McAlester


 Cenkos Securities Plc            Tel: [phone]
 Adrian Hargraves/Nick Wells


 J&E Davy                         Tel: + 353 (0)1 679 6363
 Eugenee Mulhern/ Stephen Barry




About Providence
Providence Resources P.l.c. is an Irish based oil and gas exploration company
whose shares are traded on the AIM market in London and on Dublin's ESM market.
Providence's portfolio of production, appraisal and exploration assets includes
licence interests in Ireland (offshore) and the United Kingdom (onshore). In
2011, Providence announced plans to invest with its partners upwards of $500
million in the drilling of a number of exploration and development wells in 6
different basins offshore Ireland. This multi-year programme represents the
largest drilling campaign ever carried out offshore
Ireland.www.providenceresources.com.

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 over 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.

Glossary of terms used in this Announcement
ALL FIGURES QUOTED ARE GROSS FIGURES, UNLESS OTHERWISE STATED
 MMBO    Millions of Barrels of Oil

 BOEPD   Barrels of Oil Equivalent per Day

 LO      Licensing Option (Ireland)

 SEL     Standard Exploration Licence (Ireland)

 FEL     Frontier Exploration Licence (Ireland)

 PL      Prospecting Licence (United Kingdom)


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



                                 LIST OF ASSETS

Licence  Asset       Basin       Operator   Partners      PVR %    Type



IRELAND

SEL 1/11 Barryroe    Celtic Sea  Providence Lansdowne;    50.0%    Oil discovery
                                            San Leon



SEL 2/07 Hook Head   Celtic Sea  Providence Atlantic;     72.5%    Oil & gas
                                            Sosina                 discovery

SEL 2/07 Dunmore     Celtic Sea  Providence Atlantic;     72.5%    Oil discovery
                                            Sosina

SEL 2/07 Helvick     Celtic Sea  Providence Atlantic;     62.5%    Oil & gas
                                            Sosina;                discovery
                                            Lansdowne

SEL 2/07 Nemo        Celtic Sea  Providence Atlantic;     54.4%(1) Oil & gas
                                            Sosina;                discovery
                                            Nautical



LO 10/1  Baltimore   Celtic Sea  Providence Nautical      60.0%    Oil discovery

LO 10/1  Marlin      Celtic Sea  Providence Nautical      30.0%(2) Oil & gas
                                                                   exploration



SEL 2/11 Dalkey      Kish Bank   Providence Petronas      50.0%    Oil & gas
         Island                                                    exploration

SEL 2/11 ULYSSES     Kish Bank   EIRGAS(3 )               100.0%   Gas storage
                                                                   evaluation



LO 11/12 Kylemore    Slyne       Providence First Oil     66.66%   Oil & gas
                     Trough                                        exploration



FEL 2/04 Spanish     Main        Providence Chrysaor;     32.0%    Oil & gas
         Point       Porcupine              Sosina                 discovery

FEL 2/04 Burren      Main        Providence Chrysaor;     32.0%    Oil discovery
                     Porcupine              Sosina

FEL 2/04 Wilde /     Main        Providence Chrysaor;     32.0%    Oil discovery
         Beehan      Porcupine              Sosina



FEL 4/08 Cama (North Main        Providence Chrysaor;     32.0%    Oil & gas
         & South)    Porcupine              Sosina                 exploration

FEL 4/08 Rusheen     Main        Providence Chrysaor;     32.0%    Oil & gas
         (North &    Porcupine              Sosina                 exploration
         South)

FEL 4/08 Costelloe   Main        Providence Chrysaor;     32.0%    Oil & gas
         (Main,      Porcupine              Sosina                 exploration
         North &
         South)

FEL 4/08 Shaw        Main        Providence Chrysaor;     32.0%    Oil & gas
                     Porcupine              Sosina                 exploration

FEL 4/08 Synge       Main        Providence Chrysaor;     32.0%    Oil & gas
                     Porcupine              Sosina                 exploration



LO 11/2  Spanish     Main        Providence Chrysaor;     32.0%    Oil & gas
         Point South Porcupine              Sosina                 exploration



FEL 3/04 Dunquin     South       ExxonMobil Eni; Repsol;  16.0%(4) Oil & gas
                     Porcupine              Sosina                 exploration



FEL 1/99 Cuchulain   South       ENI        ExxonMobil;   3.2%     Oil & gas
                     Porcupine              Sosina                 exploration



LO 11/9  Drombeg     South       Providence Sosina        80.0%    Oil & gas
                     Porcupine                                     exploration



LO 11/11 Newgrange   Goban Spur  Providence Repsol;       40.0%    Oil & gas
                                            Sosina                 exploration



SEL 1/07 Pegasus     St George's Providence               100.0%   Oil & gas
                     Channel                                       exploration

SEL 1/07 Orpheus     St George's Providence               100.0%   Oil & gas
                     Channel                                       exploration

SEL 1/07 Dionysus    St George's Providence               100.0%   Oil & gas
                     Channel                                       exploration

SEL 1/07 Dragon      St George's Providence               100.0%   Gas discovery
         (part)      Channel



1 Subject to terms of farm out with Nautical
2 Providence holds 60% of licence; Equity shown is net
for Marlin Prospect
3 EIRGAS Limited is a 100% owned SPV established by
Providence to invest in gas storage/ CCS opportunities
offshore Ireland/UK
4 Subject to terms of farm out with ExxonMobil



UNITED KINGDOM

PL 240   Singleton   Onshore,    Providence Noble         99.13%   Oil & gas
                     Weald                                         production



PELD 233 Baxter's    Onshore,    Providence Northern      50.0%    Oil discovery
         Copse       Weald

PELD 233 Burton Down Onshore,    Providence Northern      50.0%    Oil & gas
                     Weald                                         exploration



PL 5/10  Rathlin     Rathlin, N. Providence               100.0%   Oil & gas
         Island      Ireland                                       exploration










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Source: Providence Resources plc via Thomson Reuters ONE

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