Providence Secures Option to Enter Gas Storage ...

PROVIDENCE SECURES OPTION TO ENTER GAS STORAGE AND TRADING MARKETS


  * PROVIDENCE'S NEW SUBSIDIARY EIRGAS SECURES OPTION TO ACQUIRE 40%
    OF KINSALE HEAD ASSETS FROM PETRONAS



  * RIGHT TO ACQUIRE 40% INTEREST ON SAME COMMERCIAL TERMS



  * ASSETS INCLUDE PRODUCING GAS FIELDS AND GAS STORAGE/ TRADING
    ACTIVITIES


Providence Resources P.l.c. ('Providence'), the AIM and IEX listed
exploration and production company, is pleased to announce that its
wholly owned subsidiary, EIRGAS Limited ('EIRGAS'), has been granted
an Option (the "Option") to acquire a 40% of 100% operated interest
in the Kinsale Head Area comprising Kinsale Head, South West Kinsale
and the Ballycotton gas fields, as well as an 86.5 % interest in the
gas producing Seven Heads field ("Kinsale Head"), located in the
Celtic Sea, from Labuan Energy Corporation Limited, a wholly owned
subsidiary of PETRONAS International Corporation Ltd. ('PICL') which
is a wholly-owned overseas investment arm of Petroliam Nasional
Berhad ('PETRONAS'), the national oil company of Malaysia. EIRGAS is
a special purpose vehicle established by Providence to invest in gas
production, storage and trading opportunities offshore Ireland and in
the United Kingdom.

The grant of the Option follows PETRONAS' purchase of a 100% interest
in the Kinsale Head gas fields from Marathon Petroleum Venus Ltd.
('Marathon'), as first announced on December 17th, 2008 and concluded
on April 17th, 2009 (the 'Transaction'). The Transaction had a total
value of US$ 180 million with an effective date of 1st January 2008.

Under the terms of the Option agreed between Providence and PETRONAS,
(as negotiated and agreed with PICL's wholly-owned subsidiary, Labuan
Energy Corporation Ltd.) EIRGAS has secured the right, exercisable at
its discretion and subject to regulatory approval, to purchase a 40%
stake in Kinsale Head within 3 months of June 15th, 2009
Commenting, Mr Tony O'Reilly, Chief Executive of Providence, said:

"We are delighted to have been able to agree this unique Option
Agreement with PETRONAS. An investment in the Kinsale Head area not
only allows us to combine our extensive operational experience
offshore Ireland with their proven track record in gas production,
storage and trading, but also gives us exposure to the technical
resources of PETRONAS, one of the world's largest oil and gas
companies.

"Assuming that EIRGAS exercises its Option and the transaction
completes as planned, not only will Providence's attributable daily
production double to over 4,000 BOEPD, but we will also gain exposure
to existing and new gas storage and trading opportunities, which we
see as a high potential future growth area. Additionally, the deal
would also give EIRGAS an opportunity to potentially monetise gas
from some of Providence's adjacent gas discoveries in the Celtic Sea,
as well as from third party fields."



Contacts:

Providence    Resources    Plc
            Tel: [phone]
Tony O'Reilly, Chief Executive

Powerscourt
                        Tel: [phone]
Rory Godson/Elizabeth Rous

Murray                  Consultants
                        Tel: [phone]
Pauline McAlester

Cenkos Securities Plc
                                                       Tel: +44 207
387 8900
Joe Nally/ Nick Wells

Davy
                       Tel: + 353 1 679 6363
Eugenée Mulhern/ Stephen Barry


Explanatory Notes

About EIRGAS Limited
EIRGAS Limited is a special purpose vehicle established to invest  in
gas production and gas storage opportunities offshore Ireland and the
United Kingdom. EIRGAS is owned 100% by Providence.

About PETRONAS

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 Transaction
On April 17th, 2009, Marathon (NYSE: MRO) announced that it had
completed the sale of its wholly-owned subsidiary, Marathon Oil
Ireland Ltd. ("MOIL") to PSE Ireland Ltd., an indirect  wholly-owned
subsidiary of PETRONAS. The transaction had a total value of US$ 180
million with an effective date of 1st January 2008. This sale did not
include Marathon's 18.5% interest in the Corrib natural gas
development.

Under the terms of the sale, PSE Ireland acquired Marathon's 100%
operated interest in the Kinsale Head Area comprising Kinsale Head,
South West Kinsale and the Ballycotton gas fields, as well as an 86.5
% interest in the gas producing Seven Heads field, which is tied back
to Kinsale, and a 100 % interest in the company's gas storage and
trading business with current capacity of 8 BCF. As part of the
transaction, PSE Ireland retains the 61 MOIL employees in Ireland.

Net production from these operations averaged approximately 30 MMCFGD
of natural gas for the first quarter of 2009. Marathon's total net
risked resource associated with these assets as of the end of 2007
was 62 BCF, of which 46.2 BCF, or 7.7 million BOE, were net proved
reserves. 3P reserves were stated at 73.6 BCF.

2008 Financial Data on "MOIL" (in US Dollars)
Total Income (Revenue)        $ 154.863 million
EBITDA                                  $ 115.867 million
Net Profit                                $   50.732 million

Total Assets                           $ 247.913 million

Total Liabilities                      $ 224.878 million

Total Net Assets                    $   23.035 million


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 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, 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.
Providence has  an interest  in  11 prospects  in the  Celtic  Sea/NE
Celtic  Sea  region,  including  a  number  of  gas  discoveries  and
prospects, as shown on the Assets by Region chart below.
Further information  on Providence  and its  oil and  gas  portfolio,
including Annual Reports are  available from Providence's website  at
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 19 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

BOE Barrels of Oil Equivalent (1 BOE = 6,000 SCFG)
BCF Billion Cubic Feet of Gas
BOEPD Barrels of Oil Equivalent per Day
MCFGD Thousand Cubic Feet of Gas per Day
MMCFGD Million Cubic Feet of Gas per Day

SPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007 has  been
used in preparing this announcement
PROVIDENCE - ASSETS BY REGION

Asset                            Location
Operator             %                   Type

IRELAND
Pegasus                       NE Celtic Sea                Providence
      100.0%             Oil and gas exploration
Orpheus                        NE Celtic Sea
Providence       100.0%             Oil and gas exploration
Dionysus                      NE Celtic Sea                Providence
      100.0%             Oil and gas exploration
Dragon (part)                NE Celtic Sea                Marathon
         c. 25.0%           Gas development
Hook Head                    Celtic Sea
Providence       53.2%               Oil &Gas discovery
Dunmore                       Celtic Sea
Providence       53.2%               Oil discovery
Helvick                          Celtic Sea
Providence       53.2%               Oil & Gas discovery
Ardmore                       Celtic Sea
Providence       53.2%               Gas discovery
Blackrock                      Celtic Sea
Providence       53.2%               Oil discovery
LO 1/07                         Celtic Sea
Providence       53.2%               Oil and gas exploration
Barryroe                        Celtic Sea
Lansdowne       30.0%               Oil & Gas discovery
Spanish Point               Porcupine Basin            Providence
      56.0%               Gas development
Burren                           Porcupine Basin
Providence       56.0%               Oil discovery
FEL 4/08                       Porcupine Basin            Providence
      56.0%               Oil and gas exploration
Dunquin                        Porcupine Basin            ExxonMobil
     16.0%               Oil and gas exploration
Drombeg                      Porcupine Basin            ExxonMobil
     16.0%               Oil and gas exploration
Newgrange                    Goban Spur Basin         Providence
      16.0%               Oil and gas exploration
Kish                              Kish Bank Basin
Providence       50.0%               Oil and gas exploration

UNITED KINGDOM
Singleton                      Onshore
Providence       99.1%*              Oil and gas production
Baxter's Copse             Onshore                        Providence
      50.0%               Oil discovery
Burton Downs               Onshore                        Providence
      50.0%               Oil and gas exploration
* 99.125%

UNITED STATES
High Island A 268          Gulf of Mexico
Peregrine          5.0%                Oil and gas production
Galveston A 155            Gulf of Mexico              Peregrine
         10.8%               Gas development
Ship Shoal 252/253/267* Gulf of Mexico             SPN
                50.0%               Oil and gas production
Main Pass 19                Gulf of Mexico              Petsec
             45.0%               Oil and gas production
East Cameron 257         Gulf of Mexico             SPN
                12.5%               Gas production
West Cameron 333        Gulf of Mexico              Mariner
            32.5%               Gas production
Vermillion 60                 Gulf of Mexico              SPN
                50.0%               Gas production
Ridge                           Onshore Louisiana         Brammer
          30.0%               Gas production
Main Pass 89**              Gulf of Mexico              Beryl
                17.5%               Gas production
* Earned interest through well bore
** Back-in rights for 25% of 70% after pay out

NIGERIA
AJE, OML 113               Offshore Nigeria           YFP/Chevron
5.0%                 Oil and gas development

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