End of Year Trading Statement 2010

Embargo: 7:00am
23 December 2010

                          PROVIDENCE RESOURCES P.l.c.
                       END OF YEAR TRADING STATEMENT 2010

2010 HIGHLIGHTS

PRODUCTION
  * Reinstatement of production from Ship Shoal 253, Gulf of Mexico, USA
  * Commencement of two well drilling programme at Singleton, Onshore UK


APPRAISAL/DEVELOPMENT
  * Porcupine Basin
      * Spanish Point gas condensate discovery: Results of 3D seismic, outline
        development and forward appraisal programme announced
      * Burren oil discovery: 3D seismic evaluation completed


  * St George's Channel
      * Farm out option agreed with Star PETRONAS over SEL 1/07 (Dragon gas
        field)


  * North Celtic Sea
      * Barryroe oil discovery: Increased shareholding to 50% and assumed
        Operatorship
      * Baltimore oil discovery: New licensing option authorisation and farm out
        to Nautical Petroleum
      * Helvick oil discovery: Farm out of 10% to Lansdowne and ongoing
        evaluation of development options to first oil
      * Hook Head: Farm out option agreed with Sosina in return for drilling of
        a well
      * Nemo oil discovery (formerly Ardmore): Farm out to heavy oil specialists
        Nautical Petroleum


EXPLORATION
  * Dunquin Prospect, Porcupine Basin: Well site survey completed
  * Secured first Exploration License in Northern Ireland over Rathlin Island
  * New Exploration Prospects, offshore Ireland:
      * Dalkey Island oil prospect, Kish Bank Basin
      * Marlin gas prospect, North Celtic Sea Basin
      * Wilde gas condensate prospect, Porcupine Basin

OTHER
  * AMEC awarded ULYSSES gas storage conceptual study for the Kish Bank Basin
  * Placing of shares in February raised €16.3 million
  * Consolidation of share capital in May 2010


2011 OUTLOOK

PRODUCTION
  * Singleton, Onshore UK
      * Programme to double production rates to over 1,500 BOEPD within the next
        two years through additional wells, well stimulation, hydraulic
        fracturing and installation of generators to monetise flared gas.  This
        programme is ongoing.

  * Gulf of Mexico, US
      * Various planned re-completes and further drilling of PUD's


DRILLING
  * Singleton, Onshore UK
      * Conclude X8 lateral drilling programme
      * Drill X12 well

  * Ireland
      * Commencement of multi-year, 12-well drilling programme over 6 basins
      * Exploration Targets
          * Dalkey Island Oil Prospect
          * Rathlin Island Oil Prospect
          * Marlin Gas Prospect
          * Orpheus Gas Prospect
          * Pegasus Gas Prospect
          * Dunquin Gas Prospect

      * Appraisal/Development
          * Hook Head Oil Discovery
          * Spanish Point Gas Condensate Discovery
          * Barryroe Oil  Discovery
          * Burren Oil Discovery

      * Pre-production
          * Helvick Oil Field
          * Dragon Gas Field


OTHER ACTIVITIES
  * 3D seismic - to be carried out in North Celtic Sea and Main Porcupine Basin
  * ULYSSES - complete evaluation of Kish Bank gas storage opportunity with
    AMEC
  * Gas to Wire Project - complete installation at Singleton
  * AJE - Evaluation of commercial field development is ongoing
  * Corporate - evaluation of Irish/UK opportunities and further partner
    affiliations


Commenting on activity during 2010 and the future plans for 2011, Tony O'Reilly,
Chief
Executive of Providence Resources P.l.c., said:

"2010 has seen a huge amount of activity at Providence. We have assembled a
balanced portfolio of drillable prospects while also ensuring that we have the
appropriate partners for these specific assets. 2011 and beyond is all about
drilling and we are expecting significant activity in our three operational
areas of the United Kingdom, the Gulf of Mexico and, most importantly, offshore
Ireland where we have multiple drilling targets. This not only represents the
largest drilling programme in our history but it will also be the largest co-
ordinated multi-basin drilling programme carried out offshore Ireland. Working
with our partners, over the next two years, we plan to carry out a comprehensive
drilling programme to test the hydrocarbon potential of some of the major basins
offshore Ireland, consisting of both high impact exploration and
appraisal/development wells.

"At the same time, we remain focussed on our production portfolio, and here we
will see further investment at Singleton, as well as in the Gulf of Mexico. At
Singleton, we are forecasting a doubling of production within the next two
years. The cumulative impact of our investments at Singleton and in the Gulf of
Mexico should see production levels increase by nearly 50% from current levels
of 1,700 BOEPD to over 2,500 BOEPD by the end of 2011.

"On the development front, the announcement of the results from the Spanish
Point 3D survey, and the associated development studies, was a major milestone
which heralds this project as Ireland's next major hydrocarbon development
project. Equally important was the increase in equity at Barryroe, our
assumption of operatorship and the planned fast tracking of the appraisal
programme there. The whole Celtic Sea portfolio has materially changed over the
past year in terms of new partners, agreed farm out deals and the forward
programme of activity, and we expect this to continue in 2011.

"Within the exploration portfolio, the successful conclusion of the site survey
over Dunquin was the last key step in the pre-drill activities, and we now await
formal notification of a spud date from the operator, ExxonMobil. In 2010, we
also had notable success in identifying and capturing large new exploration
prospects offshore Ireland, including the Wilde prospect under Spanish Point;
the Dalkey Island oil prospect, offshore Dublin; the Marlin gas prospect in the
Celtic Sea, adjacent to the Kinsale Head gas field, and the Rathlin Island oil
prospect, our first exploration licence in Northern Ireland.

"Providence enters 2011 with a clear strategy, strong partners, an increasing
reserve base and a dynamic asset portfolio, which will be the subject of a
comprehensive drilling programme. Combined with solid macro economic factors
(commodity prices and exchange rates), existing cash resources, growing
production cash flow and the ongoing support of our shareholders and bankers, we
remain confident that Providence represents a compelling long term investment
proposition for investors."


Contacts:
 Providence Resources Plc          Tel: [phone]
 Tony O'Reilly


 Powerscourt                       Tel: [phone]
 Rob Greening/Lisa Kavanagh


 Murray Consultants                Tel: [phone]
 Pauline McAlester


 Cenkos Securities Plc             Tel: [phone]
 Joe Nally/Nick Wells


 J&E Davy                          Tel: + 353 (0)1 679 6363
 Stephen Barry




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 ESM
market. 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. Further
information on Providence and its oil and gas portfolio, including Annual
Reports are available from Providence's website atwww.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 20 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.

Terms used in this Announcement
ALL FIGURES QUOTED ARE GROSS FIGURES, UNLESS OTHERWISE STATED
BOEPD                                         Barrels of Oil Equivalent 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

Spanish Point     Porcupine Basin     Providence  56.0%1   Oil & gas development

Burren            Porcupine Basin     Providence  56.0%1   Oil discovery

Wilde             Porcupine Basin     Providence  56.0%1   Oil and gas
                                                           exploration

FEL 4/08          Porcupine Basin     Providence  56.0%    Oil and gas
                                                           exploration



Dunquin           Porcupine Basin     ExxonMobil  16.0%2   Oil and gas
                                                           exploration

Drombeg           Porcupine Basin     ExxonMobil  16.0%    Oil and gas
                                                           exploration

Cuchulain         Porcupine Basin     ENI         3.2%     Oil and gas
                                                           exploration



Dalkey Island     Kish Bank Basin     Providence  50.0%    Oil and gas
                                                           exploration

ULYSSES           Kish Bank Basin     EIRGAS*     100.0%   Gas storage
                                                           evaluation



Pegasus           St George's Channel Providence  100.0%3  Oil and gas
                                                           exploration

Orpheus           St George's Channel Providence  100.0%3  Oil and gas
                                                           exploration

Dionysus          St George's Channel Providence  100.0%3  Oil and gas
                                                           exploration

Dragon (part)     St George's Channel Providence  c.25.0%3 Gas development



Hook Head         Celtic Sea          EXOLA**     72.5%4   Oil & gas discovery

Dunmore           Celtic Sea          EXOLA**     72.5%    Oil discovery

Helvick           Celtic Sea          EXOLA**     62.5%    Oil & gas discovery

Nemo***           Celtic Sea          EXOLA**     72.5%5   Oil & gas discovery

Barryroe          Celtic Sea          EXOLA**     50.0%    Oil discovery

Baltimore         Celtic Sea          EXOLA**     60.0%    Oil discovery

Marlin            Celtic Sea          Providence  60.0%    Oil and gas
                                                           exploration


1 Subject to terms of farm out with Chrysaor
2 Subject to terms of farm out with ExxonMobil
3 Subject to terms of farm out with PETRONAS
4 Subject to terms of farm out with Sosina
5 Subject to terms of farm out with Nautical
*  EIRGAS Limited is a 100% owned SPV established by Providence to invest in gas
storage/ CCS opportunities offshore Ireland/UK
** EXOLA Limited is a 100% owned SPV established by Providence to invest in
heavy/unconventional oil developments and opportunities offshore Ireland/UK
*** previously called Ardmore



UNITED KINGDOM

Singleton         Onshore             Providence  99.1%    Oil and gas
                                                           production

Baxter's Copse    Onshore             Providence  50.0%    Oil discovery

Burton Down       Onshore             Providence  50.0%    Oil and gas
                                                           exploration



UNITED STATES

HI A-268          Gulf of Mexico      Peregrine   5.0%     Oil and gas
                                                           production

GA A-155          Gulf of Mexico      Peregrine   10.8%    Gas production

SS 252/253/267*   Gulf of Mexico      SPN Dynamic 50.0%    Oil and gas
                                                           production

MP 19             Gulf of Mexico      Petsec      45.0%    Oil and gas
                                                           production

EC 257            Gulf of Mexico      SPN Dynamic 12.5%    Gas production

WC 333            Gulf of Mexico      Mariner     32.5%    Gas production

VR  60            Gulf of Mexico      SPN Dynamic 50.0%    Gas production

Ridge             Onshore Louisiana   Brammer     30.0%    Gas production

* Earned interest through well bore participation



NIGERIA

AJE, OML 113      Offshore Nigeria    YFP/Chevron 6.7%     Oil and gas
                                                           development









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Source: Providence Resources plc via Thomson Reuters ONE

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