Report and Financial Statements Year Ended 31.1...

Embargo 7:00am - 17 May 2006


                     PROVIDENCE RESOURCES P.l.c.
                   REPORT AND FINANCIAL STATEMENTS
                 FOR THE YEAR ENDED 31 DECEMBER 2005

Highlights

  * Turnover up 30% at ¤1,376,000
  * Profit for the year of ¤127,000
  * Farmout agreed with ExxonMobil on Dunquin
  * Spanish Point farmout programme commences in May 2006
  * Drilling at Singleton leads to increased production in 2006
  * New licence Interests awarded for Apollo, offshore Ireland and
    West Lennox and Crosby, offshore UK
  * ¤50 Million Financing Facility put in place with Macquarie to
    fund acquisition of new production and / or the development of
    both existing and new projects

Commenting on today's results, Tony O'Reilly jnr., Chief Executive of
Providence Resources P.l.c. said:
"The past year has been an exciting and busy period for Providence
and has seen a number of strategic initiatives get underway. The
drilling of 4 wells; the farmout of the Dunquin Prospect to
ExxonMobil - the world's largest oil and gas company; the securing of
a new ¤50 million financing facility with Macquarie; the finalization
of a major development study on Spanish Point and subsequently, the
opening of the data room for Spanish Point are all individually major
milestones for the Company. Taken together, they demonstrate that the
Company has delivered on its stated strategy of achieving a balanced
and diverse portfolio of assets, whilst also increasing its daily oil
production.

"The successful farmout of Dunquin, and partnering with ExxonMobil,
highlights the renewed and growing interest of the significant
hydrocarbon potential off Ireland's west coast. This focus on the
Porcupine Basin is enormously encouraging for Ireland's hydrocarbon
industry and is a very positive backdrop against which Providence has
begun to market its Spanish Point Project, in which there is
significant interest.

"Looking forward, the Company is planning a comprehensive programme
of activity for 2006 and beyond, including the farmout of Spanish
Point, seismic activity over Dunquin, further potential appraisal
wells at AJE in Nigeria and possibly in the East Irish Sea, as well
as a multi-well drilling programme being planned for offshore
Ireland. This activity is all set against a market shaped by
scarcity, geo-political pressure on domestic resources and rising
commodity prices. We believe that, with Providence's balanced
portfolio of Irish and UK assets and the ever-growing need for secure
and reliable sources of energy, that the Company is extremely well
placed to capitalize on this environment."

Contacts:

Providence Resources P.l.c.
Tony O'Reilly jnr., Chief Executive
Tel: + 353 (1) 667 5740

Powerscourt Media
Victoria Brough
Tel: [phone]

Murray Consultants
Paulline McAlester
Tel: + 353 (1) 498 0300



FINANCIAL HIGHLIGHTS
Financial Results
Turnover for the year ended 31 December 2005 was ¤1,376,000 (2004:
¤1,051,000). All revenues for the year came from the Company's
interest in the producing UK onshore Singleton oil field. In
addition, revenue benefited from the higher oil price in 2005 with
the average oil price per barrel at US$54 compared with US$38 in
2004.
An operating profit of ¤3,000 was recorded in 2005 (2004: ¤95,000),
after deducting ¤479,000 for once off AIM admission costs. The profit
on ordinary activities after taxation was ¤127,000 (2004: ¤165,000),
reflecting the higher revenue offset by the once off AIM admission
costs and lower interest receivable. Shareholders' funds increased to
¤21,539,000 in 2005 (2004: ¤17,235,000). The Company's cash balance
was enhanced in 2005 by the purchase and subscription of 88.4 million
warrants by Sir Anthony O'Reilly for a consideration of ¤3.98
million.

Financing - Macquarie
In February 2006, the Company announced a ¤50 million financing
facility with the specialist energy bank, Macquarie Bank. This 4-year
flexible revolving credit facility allows the Company to borrow up to
¤50 million of financing, secured on any assets to be acquired and or
developed. This facility was arranged primarily to allow the Company
the financial freedom to increase its daily oil (or oil equivalent)
production, without recourse to shareholders. The Company has stated
that it aspires to increase daily production to 2,000 bopd over the
next 24 months.

AIM Listing
In June 2005, the Company's shares were admitted to the Alternative
Investment Market (AIM) of the London Stock Exchange. The purpose of
this listing was to increase the profile of the Company in the UK and
to broaden the shareholder constituency. The Company appointed Cenkos
Limited as its UK Broker whilst also retaining the services of Davys
as its nominated advisor (NOMAD) and Irish Broker. The Company also
retains its listing on the IEX (Irish Enterprise Exchange) of the
Irish Stock Exchange.


OPERATIONAL HIGHLIGHTS
Dunquin (16% interest) - Ireland
Following months of evaluation and intense negotiations, in February
2006, the Company announced a farmout transaction in partnership with
ExxonMobil, the world's largest publicly listed energy company, for
its Dunquin Prospect in the Porcupine Basin, off the west coast of
Ireland. Under the terms of the farmout agreement, ExxonMobil will
earn an 80% shareholding in the prospect in return for investing in
an extensive success based work programme, which provides for seismic
surveys and drilling. Providence will retain a 16% interest and will
be the Operator of the Phase 1 seismic programme. This programme, a
1,500km 2-D long offset seismic survey, is planned to be carried out
this summer. Following this, a decision will then be taken on the
next steps, including any drilling plans. The companies have also
agreed an Area of Mutual Interest over the South Porcupine Basin.

Spanish Point (80% interest) - Ireland
In the Central Porcupine Basin, work on the Spanish Point Project has
progressed considerably in the past year. A proven discovery, Spanish
Point, was successfully drilled and tested in 1981 by a consortium
that included a predecessor company to Providence. Due to economic
circumstances and a lack of gas infrastructure in place at that time
in Ireland, the project was not advanced. Some 25 years later,
economic conditions and advances in infrastructure in Ireland have
changed and this led Providence to apply to the Irish Government for
an exploration licence. A frontier exploration licence was awarded in
November 2004.

Over the past year, the Company has been carrying out an extensive
pre-development programme including reservoir and development
engineering with internationally recognised third party companies.
These studies show that Spanish Point is an economically feasible and
robust project with estimated recoverable reserves of 1.4 TSCF and
160 MMBO, with further upside potential from sands not previously
tested as well as other targets previously not drilled. Providence
has now prepared an extensive study on the development options for
the anticipated 30-year life of this significant gas condensate
field.

At the beginning of May 2006, Providence opened the Spanish Point
data room for the industry to showcase all of this work as a
pre-cursor to future commercial and farmout discussions. Industry
interest has been significant.

Further geological investigations of the Spanish Point Field also
confirm the presence of a new deeper structure not mapped previously.
Adjacent to Spanish Point is the Burren oil discovery (Providence 80%
interest), which has been re-mapped using new seismic inversion
technology. The preliminary results indicate a potential substantial
volume of hydrocarbons in place and the Company is now actively
evaluating options for its future development, including a potential
satellite development to the nearby Spanish Point Field.

DRILLING ACTIVITIES IN 2005

In 2005, the Company was involved in the drilling of 4 wells; 1
offshore in Nigeria (AJE 3); 1 offshore UK in the East Irish Sea
(110/14c-6); and 2 onshore UK at Singleton (X-8x and X-9).

AJE, OML 113 (7.04% interest) - Nigeria
The AJE 3 well offshore Nigeria was the third well drilled on the AJE
Field in OML 113, offshore Lagos, Nigeria and was spudded in August
2005. Whilst the well achieved its geological objectives, confirming
the presence of both oil and gas in both target reservoir intervals,
it was deep to prognosis which has prompted further seismic
evaluation by the partners. The well was suspended in September and
since this time, the partners have been conducting 3D seismic
reprocessing to link this well result with the existing two discovery
wells (AJE 1 and AJE 2), as well as identifying a potential location
for the AJE 4 appraisal well. Interestingly, recent analysis of the
existing wells has identified a new pay zone in the Tertiary
suggesting that AJE is not only an oil play but may also contain much
greater gas potential than had originally been thought. Further news
is expected later in the year.

UK110/14c-6, West Lennox (10% interest) - United Kingdom
In October 2005, the Company was involved in a consortium that
drilled a well on the south-west flank of the BHP Billiton operated
Lennox Field, which is presently producing in the Liverpool Bay area
of the East Irish Sea Basin. An extension of the Lennox field into
the block has already been proven in the previous 110/14-1 &
110/14a-3 wells, both of which were oil discoveries. The recent
110/14c-6 well was drilled to test a seismic anomaly south and east
of the existing proven oil-bearing reservoir. On completion of
drilling operations, well 110/14c-6 was declared as having "tight
hole" status by the Operator (CMI) and remains so. Further geological
work continues in this area, including the adjacent Crosby Prospect
(Providence 10% interest), which is estimated to contain prospective
resources of 15 MMBOE.

X-8x and X-9, Singleton (20% interest) - United Kingdom
In November/December 2005, 2 wells were drilled on the onshore
producing Singleton Field with the stated objective of increasing
daily production. Both wells, X-8x and X-9, achieved their objectives
and the Operator, Star Energy, announced that the drilling of the X-9
well had broken existing UK onshore drilling records. Both wells have
been successfully brought on stream, increasing daily production at
Singleton by about 50% in 2006.

NEW / INCREASED LICENCE INTERESTS
In addition to the Company securing a new 10% interest in Block
P.099, in the Liverpool Bay area in the East Irish Sea (West Lennox
and Crosby), the Company also secured a new licence interest (100%)
in the Apollo structure in the St George's Channel area. This is
adjacent to Providence's Pegasus and Dionysus prospects and
Marathon's proven Dragon field, which extends into Providence's
licence interests.

Since the year end, the Company restructured and consolidated its
ownership profile in the Celtic Sea and St George's Channel licence
areas by increasing its stake in all of its prospects to 95%. In
Licence OML 113 in Nigeria (the AJE Field), the Company's stake was
also increased from 6.3% to 7.04%.

The Company continues to actively evaluate new opportunities, both in
existing areas in which we operate, as well as other areas around the
world, that fit into the Company's stated strategy of having a
balanced portfolio of high impact exploration, development and
production assets. Further announcements in this regard are expected
to be made during the year.

Singleton (20% interest) - United Kingdom
During 2005, the Singleton Field, in which the Company has a 20%
interest, produced 430 BOPD, with the net production to Providence
being 86 BOPD. The successful drilling of the X-8x and X-9 wells
enhanced production rates, delivering incremental daily field
production by approximately 50% in 2006. The success of this
programme has encouraged the partners to consider further investment
to increase production at this circa 74 million barrel (STOIIP)
field, where less than 4 million barrels have been recovered to date.
Further announcements regarding Singleton are expected during the
year.

Celtic Sea and St George's Channel (95% interest) - Ireland
As is the case with a number of our assets, the higher commodity
price environment allied to enhanced geological and engineering work,
has allowed Providence to upgrade the economic feasibility of a
number of its prospects in its Celtic Sea and St. George's Channel
portfolio. This portfolio consists of a number of proven discoveries
(Hook Head, Ardmore, Helvick, Blackrock and Block 50/6-a) as well as
a number of other exploration prospects (Pegasus, Dionysus, Glandore)
and the newest 100% licence, Apollo.

Various development options have been evaluated by the Company and an
overall asset development programme has now been agreed. This
programme consists of further long offset seismic lines to be
acquired over certain fields this summer followed by a multi-well
programme. Details of this multi-well programme, including any
industry affiliations, are still being finalised and it is hoped to
announce further details later in the year.

North Sea Assets (25% interest) - United Kingdom
Under the terms of the UK 23rd Seaward Round, the Company holds a 25%
interest in Block 210/19(p), which is near the Shell operated Tern
Field. Providence also holds a 25% interest in Block 9/9d, which
contains an existing small oil discovery. These fields are currently
the subject of a farmout campaign being managed by the operator,
Midmar.

Energy and the Environment
The Company believes that it has a role to play in addressing energy
supply in an environmentally responsible manner. In addition to its
ongoing exploration and development initiatives, which are carried
out in accordance with all environmental rules and regulations, the
Company is also a contributing player to the Irish Government
sponsored initiative on new energy sources, including methane gas
hydrates.

OUTLOOK
The Company is expecting a period of high activity in 2006 and
beyond, the significant features of which will be: the ongoing
commercial discussions on Spanish Point; the upcoming seismic
programme on Dunquin with its partner ExxonMobil; the next planned
steps at the AJE field in Nigeria; and a number of other portfolio
enhancing measures in the UK and Ireland, including long offset
seismic surveys on a number of our Irish assets. The Company is also
looking to complete ongoing farmout discussions on a number of its
assets as well as finalising details for a multi-well programme
provisioned for the spring of 2007. The Company will also continue to
evaluate production, development and exploration opportunities
internationally backed by its new financing facility.

We believe that the strategy of portfolio management gives Providence
shareholders a unique investment platform. Management of our balanced
portfolio during the 2006/07 programme will comprise development,
appraisal and high impact exploration - all designed to maximise
shareholder return. This strategy, coupled with the increased
commodity price environment and the ever-growing need for secure and
reliable sources of energy, means that Providence shareholders can
look to the future with real optimism.

Tony O'Reilly jnr.,

Chief Executive

17 May, 2006

Notes to Editors
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 UK (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.

Recent corporate announcements include Dunquin Farm-out to ExxonMobil
(announced on February 13th, 2006), a ¤50 million Revolving Credit
Finance Facility with Macquarie Bank (announced on February 2nd,
2006) and increased production at its Singleton oilfield (announced
March 7th, 2006).

Comprehensive  information  on  Providence   and  its  oil  and   gas
portfolio, including the AIM  Admission document, Annual Report  2004
and Interim Report 2005 are  all available from Providence's  website
at www.providenceresources.com



Glossary of technical terms used in this announcement

'estimated recoverable reserves'  - those quantities of hydrocarbons
which are estimated to be commercially recoverable from discovered
accumulations

'prospective resources' - those quantities of hydrocarbons which are
estimated to be potentially recoverable from undiscovered
accumulations

'TSCF ' - trillion standard cubic feet of gas

'MMBO' - millions of barrels of oil

'MMBOE' - millions of barrels of oil equivalent

'BOPD' - barrels of oil per day

'STOIIP' - stock tank oil initially in place

PROVIDENCE RESOURCES P.l.c.

Group Profit and Loss Account
For the year ended 31 December 2005                 Audited   Audited
                                                       2005      2004
                                                       ¤000      ¤000
Turnover                                              1,376     1,051
Cost of sales                                         (316)     (316)
                                                   -------- ---------
Gross Profit                                          1,060       735
Operating expenses                                    (578)     (640)
AIM admission expenses                                (479)         -
                                                   -------- ---------
Operating profit                                          3        95
Interest receivable and similar income                  138       216
Interest payable and similar charges                   (14)     (146)
                                                  ---------  --------
Profit on ordinary activities before taxation           127       165
Tax on profit on ordinary activities                      -         -
                                                   -------- ---------
Profit for the financial year                           127       165
                                                      =====     =====
Earnings per ordinary share, basic and diluted        0.006      0.01
(cents)
                                                     ======    ======

PROVIDENCE RESOURCES P.l.c.


Group Balance Sheet as at 31 December 2005
                                                   Audited    Audited
                                                      2005       2004
                                                      ¤000       ¤000
Fixed Assets
Oil and gas interests                               21,247     12,004
Tangible assets                                         59         52
                                                 ---------    -------
                                                    21,306     12,056
                                                 ---------    -------
Current Assets
Debtors                                                805        369
Cash at bank and in hand                             2,992      7,284
                                                ---------- ----------
                                                     3,797      7,653
Creditors: Amounts falling due within one year     (1,940)      (897)
                                                ----------   --------
Net Current Assets                                   1,857      6,756
                                                ----------    -------
Total Assets Less Current Liabilities               23,163     18,812
Creditors: Amount falling due after more than          (2)        (6)
one year
Provision for Liabilities and Charges              (1,622)    (1,571)
                                                 ---------    -------
Net Assets                                          21,539     17,235
                                                     =====       ====
Capital and Reserves
Called up share capital                             13,784     13,690
Share premium                                       30,931     26,822
Capital conversion reserve                             623        623
Profit and loss account                           (24,426)   (24,553)
Foreign currency translation reserve                   627        653
                                                 ---------  ---------
Shareholders' Funds                                 21,539     17,235
                                                     =====     ======

PROVIDENCE RESOURCES P.l.c.

Group Cash Flow Statement
For the year ended 31 December 2005                 Audited   Audited
                                                       2005      2004
                                                       ¤000      ¤000
Net cash (outflow)/inflow from operating              (285)       244
activities
                                                   -------- ---------
Returns on investments and servicing of finance
Interest received                                       138       216
Interest paid                                           (2)       (6)
                                                   -------- ---------
                                                        136       210
                                                   -------- ---------
Taxation                                                  -         -
                                                   -------- ---------
Capital expenditure and financial investment
Expenditure on oil and gas interests                (7,330)   (4,068)
Capitalisation of operating costs                     (959)     (755)
Purchase of tangible fixed assets                      (33)      (50)
                                                   -------- ---------
                                                    (8,322)   (4,873)
                                                  ---------  --------
Net cash outflow before use of liquid
resources and financing                             (8,471)   (4,419)
                                                   -------- ---------
Financing
Issue of ordinary share capital                       4,203    12,351
Short term loans                                          -     (400)
Secured bank loans                                        -     (428)
Foreign exchange                                       (24)       (1)
                                                   -------- ---------
                                                      4,179    11,522
                                                   -------- ---------
(Decrease)/Increase in cash                         (4,292)     7,103
                                                      =====     =====




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