Celtic Sea Licences Update

5th September 2006
     Providence Resources P.l.c. ("Providence" or the "Company")

                     CELTIC SEA LICENCES UPDATE

            DEAL CONCLUDED WITH CHALLENGER MINERALS INC.

  * INITIAL 20% STAKE FARM-OUT

  * OPTION FOR A FURTHER 20% FARM-OUT

Providence, the AIM and Dublin's IEX listed oil & gas exploration and
production company, announced  today that  it has  signed a  farm-out
agreement with  Challenger  Minerals  Inc. ("CMI"),  a  wholly  owned
subsidiary of GlobalSantaFe Corporation,  one of the world's  largest
international oil  &  gas drilling  contractors,  on its  Celtic  Sea
interests, held under Licensing Options 03/8 and 03/1, off the  south
coast of Ireland.

Under the terms of the  agreement, Providence has agreed, subject  to
approval from  the  Irish  Minister for  Communications,  Marine  and
Natural Resources and the Petroleum Affairs Division (PAD), with  CMI
to farm into 20% of the Celtic Sea interests in return for CMI paying
26.7% of the costs of the seismic programme in 2006. Thereafter,  CMI
will be  responsible for  20%  of all  future licence,  drilling  and
development costs.  As a  result of  this farm-out,  Providence  will
retain a stake of 75% in these Celtic Sea interests with its partner,
Midmar Energy Limited, retaining a 5% stake.

The Celtic Sea interests (held under Licensing Options 03/8 and 03/1)
contain the following discoveries: Blackrock, Ardmore, Helvick,  Hook
Head, and  Dunmore  (Block  50/6  &  7),  as  well  as  the  Glandore
exploration prospect. Under the terms of the agreement, CMI have been
granted an option, exercisable until  31st October, 2006, to  farm-in
to an additional 20% stake in  these interests, on the same terms  as
above.

Commenting on the farm-out agreement reached with CMI, Tony  O'Reilly
jnr., Chief Executive of Providence Resources P.l.c. said:
"We are extremely pleased to have CMI and GlobalSantaFe involved with
us on our Celtic Sea licences. A great deal of work has been  carried
out on these assets over the past 2 years and the involvement of  CMI
validates our view of the real  development potential of a number  of
the assets  in this  area.  After we  complete our  upcoming  seismic
programme, which is planned to commence in the very near future,  the
parties will then decide  on the next steps  for future drilling  and
development."

Chuck Hauf, President of Challenger Minerals Inc. added:
"CMI is excited to be working  with Providence on the broad array  of
assets contained within these blocks.  We are working in  conjunction
with Providence  to assess  multiple development  opportunities at  a
time of robust commodity prices. The completion of the seismic survey
is a necessary  step in the  final evaluation process  before we  can
commence appraisal drilling".

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
Pauline McAlester Tel: + 353 (1) 498 0300

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  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;

- Completion of Dunquin Seismic (announced on August 8th, 2006)
- Annual General Meeting Statement (announced on June 20th, 2006)
- Annual Results (announced on May 17th, 2006)
- Dunquin Farm-out to ExxonMobil (announced on February 13th, 2006)
- ¤50  million  Revolving  Credit  Finance  Facility  with  Macquarie
(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  its 2005  AIM Admission  document, 2005  Annual
Report, Interim Report 2005 and  recent press releases are  available
from Providence's website at www.providenceresources.com

About CMI
Challenger Minerals  Inc.  (CMI), is  a  wholly owned  subsidiary  of
GlobalSantaFe Corporation  (GSF:NYSE). Founded  in 1972,  CMI has  an
active oil and gas portfolio in the Gulf of Mexico and North Sea  and
is currently engaged in other international activities.

Celtic Sea Licences

Licensing Option 03/8 (Providence 95% interest; Midmar Energy Ltd 5%)
refers to the following block numbers:
Part blocks 49/8, 49/9, 49/13, 49/14 ('Helvick field and Helvick
area')
Part blocks 49/13, 49/14, 49/18, 49/19 ('Ardmore')
Part block 50/11 ('Hook Head')
Part blocks 50/6, 50/7 ('Dunmore')
Part blocks 50/8, 50/9 ('Glandore')

Licensing Option 03/1 (Providence 95% interest; Midmar Energy Ltd 5%)
refers to the following block numbers:

Block 49/26, Part blocks 48/29, 48/30, 49/22, 49/23, 49/27, 49/28
('Blackrock')

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