Providence Secures Exploration Authorisation ov...

Embargo 7am
16 February 2010


                               PROVIDENCE SECURES

                            EXPLORATION AUTHORISATION

                            OVER BALTIMORE HEAVY OIL

                               DISCOVERY, OFFSHORE

                                     IRELAND

  * TWO YEAR LICENSING OPTION GRANTED


  *    INITIAL ESTIMATES SUGGEST A RESOURCE POTENTIAL OF UP TO C. 300 MILLION
                                      BARRELS


  *    BUSINESS TO BE CARRIED OUT THROUGH EXOLA LIMITED, PROVIDENCE'S NEW SPV
                 ESTABLISHED TO FOCUS ON HEAVY/UNCONVENTIONAL OIL


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 been awarded Licensing Option 10/1
over the Baltimore heavy oil discovery located in block 48/19(p) in the North
Celtic Sea Basin, offshore Ireland. The 48/19-2 discovery well is situated some
c. 30 kilometers off the south coast of Ireland in c.100 metre water depth.
Discovered in 1992, this c. 11o API heavy oil accumulation is

 estimated to have an in place resource potential of up to c. 300 MMBO.

Speaking today, Tony O'Reilly, Chief Executive of Providence, said:

"We are pleased to have secured this license.  Whilst technically challenging,
we believe that the Baltimore oil accumulation deserves further review given the
current sustained higher oil pricing environment together with the recently
announced progress on similar oil accumulations in the North Sea.  As
heavy/unconventional oil is a new business focus for Providence, the analysis
will be carried out through EXOLA Limited, our new special purpose vehicle, in
which any future developments will be financed separately from the parent
company.  We look forward to updating our shareholders on what we believe could
prove to be a very exciting and valuable addition to our growing business
portfolio".

Contacts:

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


Powerscourt                                  Tel: [phone]
Rory Godson/Elizabeth Rous

Murray Consultants                      Tel: [phone]
Pauline McAlester


Notes to Editors

About EXOLA Limited

EXOLA Limited is a SPV (special purpose vehicle) established by Providence to
invest in heavy and unconventional oil developments and opportunities offshore
Ireland and the United Kingdom. EXOLA, which is an Irish Company, is owned 100%
by Providence.

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 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 well data and published
subsurface mapping. This study indicates an in place resource potential of up to
c. 300 MMBO. Industry commentators Wood MacKenzie have stated that similar heavy
oil accumulations are likely to have a 10-30% recovery efficiency indicating
that Baltimore could have up to 30-100 MMBO reserve potential. As part of the
agreed work programme, Providence plans to verify the resource potential through
in-depth internal study together with a review of potential development
scenarios in order to finalise the reserve potential of the Baltimore discovery.

Recent work by major operators such as Statoil is currently progressing similar
heavy oil accumulations in the North Sea, most notably the Mariner and Bressay
accumulations toward development. It is likely that standard heavy oil field
technologies such as artificial lift, horizontal drilling and chemical injection
will play key roles in any ultimate commercialization of the Baltimore oil
resource.

About Heavy/Unconventional Oil

Heavy oil is crude oil which does not flow easily as its density or specific
gravity is higher than that of light/conventional oils. Heavy crude oil is
defined as any liquid petroleum with an API gravity of less than 20° which is
mostly the result of the oil bearing derived from an early mature source rock or
else due to subsequent effects of bacteria, water or air on a light oil which
result in the loss of the lighter 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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