Providence Resources P.l.c - Spanish Point Farm...

12  August 2008
Embargo 7am





                  Spanish Point Farm-Out Agreement

Providence Resources P.l.c., ("Providence" or the "Company") the  AIM
and IEX  listed production  and development  company, is  pleased  to
confirm  that,  together with  the  partner  Sosina  Exploration  Ltd
("Sosina"), it has signed a  staged farm-out agreement with  Chrysaor
Holdings Limited  ("Chrysaor"),  a privately  owned  development  led
company, on its Spanish Point discovery, in the Porcupine Basin,  off
the west coast of Ireland.
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  3-D
seismic programme on Spanish Point  as consideration for the  initial
30% interest.  Providence will  retain  a 56%  interest in,  and  the
Operatorship  of,  Spanish  Point   for  the  upcoming  3-D   seismic
programme, with Chrysaor taking a 30% interest. Sosina will retain  a
14% interest.
Dependent on the results of  the 3-D seismic programme, 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 proposed assignment of  the initial 30%  interest to Chrysaor  is
subject to Irish governmental approval.

Tony O'Reilly, Chief Executive of Providence, said:
"We are  delighted to  have agreed  this staged  farm out  deal  with
Chrysaor on  the  Spanish  Point  Project.  Having  carried  out  the
necessary  pre-development  work,  it  is  very  exciting  that   the
partnership has now  been able  to partner with  Chrysaor to  advance
this large project  to the next  exciting stage. We  look forward  to
working with Chrysaor on this project.

Phil Kirk, Chief Executive of Chrysaor said:
"We're very pleased to be joining  the Providence led group and  hope
our own experience can help to create a successful development of the
Spanish Point  discovery. Providence  and its  partners have  a  good
technical understanding of the potential of Spanish Point, which  the
group  can  now  capitalise  on  through  a  step-by-step   appraisal
programme."


Contacts:

Providence Resources P.l.c.
Tel: [phone]
Tony O'Reilly, Chief Executive

Chrysaor Holdings Limited
Tel: [phone]
Phil Kirk

Powerscourt

Tel: [phone]
Rory Godson/Elizabeth Rous

Murray Consultants
                                                          Tel: +353 1
498 0300
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  (onshore  and  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.

About Chrysaor

Chrysaor is  a privately  owned  exploration and  production  company
backed by  the  commodities  principal investment  team  of  Barclays
Capital and Natural  Gas Partners  ('NGP').  It was  formed from  the
team who successfully managed the operations and growth of CH4 Energy
Limited,  which  was  sold  to  Venture  Production  plc.  in   2006.
  Chrysaor seeks to create significant value for its stakeholders  by
focusing on the development and commercialisation of dormant oil  and
gas discoveries and incremental reserves.

Chrysaor Holdings Limited is the  Chrysaor group holding company  and
is wholly  owned  by  the  management  team,  Barclays  Capital,  the
investment banking  division of  Barclays Bank  plc and  Natural  Gas
Partners IX,  L.P., a  fund managed  by NGP.   Chrysaor is  currently
funded by a £100 million equity facility committed by the  management
team, Barclays Capital and NGP.   Chrysaor Limited is a wholly  owned
subsidiary of Chrysaor Holdings  Limited and owns  100% of the  Solan
licence P164 covering UK block 205/26a in the West of Shetlands.  The
company is drilling an appraisal well on Solan which, if  successful,
should lead to  an early development  of the field.   At the  present
time there are no other companies in the Chrysaor group.

Further information on Chrysaor is available from Chrysaor's website
at www.chrysaor.com.

About Spanish Point

Providence currently holds  an 80%  interest and is  operator of  FEL
2/04, which covers blocks  35/8 & 9 located  in the Porcupine  Basin,
off the west  cost of  Ireland. The  blocks are  situated in  300-400
metres of water and are located  approximately 200 km off the  coast.
Sosina Exploration  holds  a 20%  stake  in the  project  (Challenger
Minerals have opted not to exercise their option).

Spanish Point was first 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 circa  1,000
BOPD and 5 MMSCFGPD from a hydrocarbon column (total thickness of  c.
1,400 ft) in  sandstones of  Upper Jurassic  age. However,  due to  a
combination of  low commodity  prices and  production tests  at  that
time, the  project was  not  declared economic  and the  licence  was
subsequently relinquished.  Chevron  subsequently  held  the  licence
until 2001.

Providence Resources  Plc  applied for  and  became operator  of  the
Spanish Point licence in November 2004, and now holds the licence for
a 15 year-term. Providence's geological team carried out a geological
and geophysical  analysis  which  supported  and  improved  the  1981
post-drill  analysis  of   volumetrics  of   hydrocarbon  in   place.
Providence also reviewed the work carried out by Chevron  Corporation
as part  of  its analysis.  The  combination of  this  new  analysis,
coupled with advances  in technology and  an improved oil/gas  price,
suggest that  the  commercial development  of  Spanish Point  is  now
possible.

The board  of Providence  commissioned extensive  studies to  confirm
reservoir profiles, development options and economics. These studies,
comprising the  work of  in-house engineers  as well  as third  party
consulting engineers,  demonstrate  a feasible  and  robust  economic
development plan with substantive  potential economic value.  In  the
summer of  2007, Providence  carried  out a  long offset  2D  seismic
survey over Spanish Point  and these data, which  are expected to  be
finalised in July 2008, will  be integrated into the overall  Spanish
Point subsurface model.


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  19 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.

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