Interim Report and Financial Statements for the...

24 September 2008


                     PROVIDENCE RESOURCES P.l.c.

           INTERIM REPORT AND FINANCIAL STATEMENTS FOR THE
                    SIX MONTHS ENDED 30 JUNE 2008


FINANCIAL HIGHLIGHTS

  * Revenue up 1,200% to ¤11.24 million (HI 2007: ¤0.88 million)
  * Profit from operating activities of ¤4.98 million (HI 2007: Loss
    ¤0.14 million)
  * Net profit of ¤3.25 million (2007: Loss ¤0.26 million)
  * Total assets treble to ¤130 million (HI 2007: ¤42 million)
  * Fully diluted earnings per share of 0.13 cent (HI 2007: 0.011
    cent loss)
  * Commercial oil and gas price hedging programme implemented
    successfully


OPERATIONAL HIGHLIGHTS

  * Production has increased ~ sixteen-fold from 120 BOEPD to almost
    2,000 BOEPD
  * Acquired Triangle portfolio of oil and gas assets in Gulf of
    Mexico for US $67.5 million
  * ExxonMobil becomes operator of Dunquin Prospect
  * Drombeg licence area awarded to Providence, ExxonMobil and Sosina
  * Successful AJE 4 appraisal well, offshore Nigeria
  * Galveston A-155 gas discovery, Gulf of Mexico


SINCE PERIOD END

  * Convertible bond offering in July 2008 raises ¤42 million
  * Providence completes offshore drilling campaign at Hook Head &
    Dunmore
  * Chrysaor farms into Spanish Point project in Porcupine Basin
  * Awarded Kish Basin Licensing Option, offshore Dublin, with
    Star/Petronas
  * Launched Ulysses Study Project with Star/Petronas
  * Awarded onshore UK licence (50%) with Northern Petroleum
  * Awarded Barryroe Licensing Option (30%) in Celtic Sea



Commenting on today's Interim Results, Tony O'Reilly, Chief Executive
of
Providence Resources P.l.c., said:

"The first half of 2008 has already seen a huge amount of successful
activity, the most notable being the  transformative acquisition of
the Triangle Portfolio of oil and gas interests in the US Gulf of
Mexico. This transaction, combined with other production interests,
means that the Company has seen a very significant growth in its
revenue base. However, it is important to note that only three months
of revenue from the Triangle portfolio is included in these half year
figures.


Around three years ago, we articulated an aspiration to build up,
from an already established platform, a diversified portfolio of
exploration, production and development assets. Whilst there is still
much to achieve, I believe that shareholders can feel very positive
about the Company's balanced portfolio. We now have:

*          World class exploration assets in the Porcupine Basin with
  ExxonMobil;

*          A number of sizeable development assets in the Celtic Sea,
  some of which have recently been the subject of recent appraisal
  drilling programme;

*          A large development project offshore Nigeria;

*          The Galveston A-155 development in the Gulf of Mexico,
  which is forecast to commence gas production in the first quarter
  of 2009; and

*          Exciting development properties in the Gulf of Mexico as a
  result of the Triangle acquisition.


Most importantly, we are in a strong financial position with sizeable
production at a time of robust oil and gas prices. This time last
year, we were producing c.120 BOEPD, which is roughly one sixteenth
of our recent production levels.

Since the half year, the Company has been busy across its portfolio.
The capital raising of ¤42 million via a convertible bond offering
was a notable achievement in a very difficult market environment.
These funds have been deployed for select drilling activities in the
Celtic Sea and the Gulf of Mexico.

On the drilling side, the results from the Hook Head appraisal well
were disappointing and, due to the fact that the net hydrocarbon
bearing intervals were substantially less than had been expected in
the pre-drill estimates, the Company and its partners took the
decision to plug and abandon the 50/11-4 well in order to minimise
further costs.

The rig was immediately mobilised to the Dunmore appraisal well
location which has just completed. Whilst we are also disappointed
with the Dunmore appraisal well results in the Jurassic sandstone
reservoirs, we are very encouraged by the discovery of a new Jurassic
carbonate reservoir interval in the 50/6-4 well. Whilst this new
carbonate reservoir is not significantly developed at this well
location, it is possible that it may thicken considerably elsewhere
in the block, which is why the partners have elected to suspend the
well. Once we have completed the analysis of the well data and
determined the final resource potential of the whole accumulation, we
will be in a better position to complete our plans for any future
specialist testing programme of the 50/6-4 well.

On the corporate side, we are very pleased to welcome new partners
Star Energy, a wholly owned subsidiary of Petronas, into our new Kish
Bank Licensing Option, offshore Dublin. Here, in addition to our
normal exploration activities, we will be examining the opportunity
of various gas storage initiatives though the Ulysses Project. The
whole area of gas storage and CO2  sequestration is a new and very
exciting adjunct to our existing business. We are equally pleased to
welcome Chrysaor into our Spanish Point project in the Porcupine
Basin, where its proven track record in project development should
allow us to advance this large and exciting venture.


Looking forward, we await the analysis of the results from the Celtic
Sea drilling programme which will be the key to defining future
activities in the North Celtic Sea Basin. We will soon be in a
position to provide an update on the forward programme in the
Porcupine Basin with ExxonMobil at Dunquin, Newgrange and Drombeg,
and with Chrysaor at Spanish Point.

In terms of additional drilling, the Company is currently finalising
its forward drilling plans. Drilling is currently being planned at
Singleton, onshore UK, as well as on various Triangle opportunities
in the Gulf of Mexico. The Crosby Prospect in the East Irish Sea
Basin is also an agreed candidate for future drilling in the spring
of 2009. These drilling activities will be financed from existing
financial resources.

Providence has a very clear strategy, with solid and growing cash
flow from production, exciting exploration, appraisal and development
projects, and new initiatives in the gas storage arena. Crucially, we
are working with world class partners, including well known companies
such as Star Energy (Petronas), Chevron, C.M.I. (Transocean) and
ExxonMobil. We will continue to look for new production opportunities
in different territories and look forward to outlining further
details of our progress across the portfolio over the coming months.
 Considering all these elements, at a time of robust commodity
prices, shareholders can look to the future with real confidence".


Contacts:

Providence Resources Plc

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

Powerscourt

Tel: [phone]
Rory Godson/ Elizabeth Rous

Murray Consultants

Tel: [phone]
Pauline McAlester

The full Interim Report, Financial Statements and Company Outlook are
set out on the attached pages.


Notes to Editors:

About Providence
Providence Resources P.l.c. is an independent oil and gas exploration
company traded  on the  AIM (London)  and IEX  (Dublin) markets.  The
Company was founded in 1997, but  with roots going back to 1981  when
its 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), the Gulf of Mexico (USA) and 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 its 2007 Annual Report and recent press
releases, is available from Providence's website at
www.providenceresources.com

Review
This Announcement of results for the year ended 30 June 2008 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

ALL FIGURES QUOTED ARE GROSS FIGURES, UNLESS OTHERWISE STATED

STOIIP
                Stock Tank Oil Initially In Place
BBL
Barrels of Oil
BOPD
                Barrels of Oil Per Day
BOEPD
Barrels of Oil Equivalent Per Day
MMBO
                Millions of Barrels of Oil
MMBOE
Millions of Barrels of Oil Equivalent
BOE
Barrels of Oil Equivalent (1 BOE = 6,000 SCFG)
MCF
Thousand Cubic Feet of Gas
MCFGD
                Thousand Cubic Feet of Gas Per Day
MMCFGD
                Million Cubic Feet of Gas Per Day
BCF
Billion Cubic Feet of Gas
TCF
Trillion Cubic Feet of Gas
2P
Reserves
Proven plus probable reserves
3P
Reserves
Proven plus probable plus possible reserves

SPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007 has been
used in preparing this announcement

                          ASSETS BY REGION


Asset
Location
Operator                                %            Type

UNITED STATES

High Island A 268                 Gulf of Mexico, U.S.A.
                Peregrine                5.0%       Oil and gas
production
Galveston A 155                    Gulf of Mexico,
U.S.A.                     Peregrine            10.8%        Gas
development
Ship Shoal SS 252*               Gulf of Mexico,
U.S.A.                     SPN                     50.0%      Oil and
gas production
Ship Shoal SS 253*               Gulf of Mexico,
U.S.A.                     SPN                     50.0%      Oil and
gas production
Ship Shoal SS 267                 Gulf of Mexico,
U.S.A.                     SPN                     50.0%      Oil and
gas development
Main Pass 19                          Gulf of Mexico,
U.S.A.                     Petsec                   45.0%     Oil and
gas production
Mobile MO 861                     Gulf of Mexico,
U.S.A.                     Triangle               50.0%     Gas
production
East Cameron EC 257         Gulf of Mexico,
U.S.A.                     SPN                      12.5%     Gas
production
West Cameron WC 333       Gulf of Mexico, U.S.A.
Mariner                32.5%      Gas production
Vermillion VR 60   Gulf of Mexico, U.S.A.
SPN                      50.0%     Gas production
Ridge                                        Onshore Louisiana,
U.S.A                Brammer               30.0%    Gas production
Main Pass 89**                     Gulf of Mexico,
U.S.A.                     Beryl                      17.5%    Gas
production
*Earned interest through well bore
** Back-in rights for 25% of 70% after pay out

IRELAND

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

UNITED KINGDOM

Singleton                                                     Onshore
U.K.                                              Providence
 99.1%*       Oil and gas production
Baxter's       Copse                                          Onshore
U.K.                                              Providence
 50.0%         Oil discovery
Burton         Down                                           Onshore
U.K.                                              Providence
 50.0%         Oil and gas exploration
West Lennox                            East Irish  Sea  Basin,  U.K.
                 CMI                     10.0%         Oil discovery
Crosby                                     East Irish Sea Basin,
U.K.                   CMI                      10.0%         Oil and
gas exploration
110/9b(p) & 110/14b(p)      East Irish Sea Basin, U.K.
   CMI                     25.0%          Oil and gas exploration
* 99.125%

NIGERIA

AJE                                           Offshore Nigeria,
Africa                   YFP/Chevron          5.0%        Oil and gas
development



                     PROVIDENCE RESOURCES P.l.c.
     INTERIM REPORT AND FINANCIAL STATEMENTS FOR THE SIX MONTHS
                         ENDED 30 JUNE 2008


FINANCIAL HIGHLIGHTS


  * Revenue up 1,200% to ¤11.24 million (HI 2007: ¤0.88 million)
  * Profit from operating activities of ¤4.98 million (HI 2007: Loss
    ¤0.14 million)
  * Net profit of ¤3.25 million (HI 2007: Loss ¤0.26 million)
  * Convertible bond offering in July 2008 raises ¤42 million
  * Total assets treble to ¤130 million (HI 2007: ¤42 million)
  * Fully diluted earnings per share of 0.13 cent (HI 2007: 0.011
    cent loss)
  * Commercial oil and gas price hedging programme implemented
    successfully


Turnover for the six month period to 30 June 2008 of ¤11.237 million
was up 1,200% from the corresponding figure in 2007 (HI 2007: ¤0.880
million). This increase reflects higher production of 1,000 BOEPD in
the first half of 2008 (HI 2007: 120 BOEPD) arising from six months
production from the Company's 99.125% stake in Singleton, its 5%
interest in High Island A-268, and three months production from the
Company's 100% interest in the Triangle portfolio. During the period,
on an annualised basis, production levels reached the equivalent of
circa 1,750 BOEPD. An average price of $89 per barrel was recorded in
the first half of 2008 (HI 2007: $63).

The Company recorded an operating profit of ¤4.983 million for the
first six months (HI 2007: Loss ¤0.142 million). Following
amortisation of ¤0.455 million, (which is part of the Macquarie
finance costs of ¤2.188 million associated with the Triangle
financing, through which Macquarie was issued 10 million shares and
30 million warrants (at 12 cent per share) in lieu of fees,) the net
profit for the financial period was ¤3,250 million (HI 2007: Loss
¤0.258 million). Fully diluted earnings per share was 0.13 cent (HI
2007: loss of 0.011 cent).

In July, the Company successfully raised ¤42 million through the
issuance of a convertible bond with the net proceeds being used to
finance drilling activities in the Celtic Sea and the Gulf of Mexico.
This bond is a 4 year convertible bond which carries a 12% coupon and
is convertible into 420 million ordinary shares, if not repaid by the
Company. The bond was placed with a number of UK and Irish
institutions in what was a very difficult capital market environment.
 At 30 June 2008, total assets amounted to ¤130 million (HI 2007: ¤42
million) whilst net debt, arising from the acquisition of Singleton
and Triangle, was ¤50.5 million (HI 2007: ¤ nil.).

In June, as part of the Triangle acquisition financing, the Company
successfully implemented a commercial oil and gas price hedging
programme, arranged through Macquarie Bank. This price protection
programme gives Providence gas price protection on the down side for
approximately 60% of its total gas production at a price of $10/MCF,
and limits the upside on approximately 38% of its gas production at a
price of $12/MCF. Similarly, the Company has put in place down side
oil price protection for approximately 70% of its oil production at a
floor price of $100/BBL, with an upside limit on approximately 50% of
its oil production at a price of $160/BBL.


PRODUCTION HIGHLIGHTS

Triangle Oil & Gas Portfolio (100%) - Gulf of Mexico, U.S.A.

* Acquired in June 2008 for $67.5 million
* Net production to Providence at c.1,100 BOEPD
* Multi-well programme being finalised

In June the Company closed its acquisition of a portfolio of
producing and development assets in the US Gulf of Mexico from
Triangle Oil and Gas Inc., a private company based in Lafayette,
Louisiana, for a total consideration of US$67.5 million. The
acquisition was financed through Macquarie.

The portfolio of assets comprised interests in eight producing fields
and two development assets. Net production has been c. 1,100 BOEPD
net to Providence, though in line with operators in the Gulf of
Mexico, due to recent hurricane activity, production levels have been
curtailed during the late August/September 2008 period. In
particular, significant hurricane damage (from Hurricane Ike) to an
adjacent non-owned, but shared services, platform in the SS 253 lease
has meant that production has currently ceased from this field,
resulting in a reduction of approximately 250 BOEPD net to
Providence. This matter is now in the hands of the insurers and a
forward plan to re-establish production is being worked on with our
shared services partner.

A key feature of the Triangle acquisition was the ability to access
the extensive proved, but undeveloped, opportunities (referred to as
"PUD"s) within the portfolio. Working with its partners in the Gulf
of Mexico, Providence has now identified the first stage of
opportunities which will be the subject of a multi-well drilling
programme. Final details of this programme are being worked on and
further announcement will be made in due course.

Singleton (99.125% interest) - Onshore, United Kingdom

* Net production of 448 BOPD and 734 MSCFD
* Independent energy field audit - upgraded resources/reserves
* Future production drilling being planned
* New adjacent licence secured with Northern Petroleum

These results include six months of operating results from Singleton,
where the Company produced a net average of 448 BOPD and 734 MCFGD
(HI 2007: 120 BOEPD). With no export facilities for gas in place,
that percentage of gas not used for production is flared in line with
environmental permits. Going forward, it is planned that this flared
gas will be monetised by conversion into CNG (Compressed Natural Gas)
in line with the 50/50 JV agreement with Star Energy. To facilitate
this process, the Company recently received the necessary permits to
allow the CNG works to proceed.

Work continues to be carried out to evaluate methodologies to
increase production rates and financial returns from the Singleton
Field. The RPS Energy field audit confirmed 2P net reserves as of
January 1st 2008 of 3.1 MMBOE and 3P reserves of 7.5 MMBOE. With an
estimated 71 million stock tank barrels of oil initially in place
(STOIIP), and with less than 5% having been recovered to date, the
Company believes that there are many opportunities to further enhance
field recovery rates. Accordingly, the Company is currently
finalising plans for production drilling at Singleton for Q1 2009,
details of which will be announced in due course.

In July, the company announced that, in conjunction with Northern
Petroleum, it had been awarded Petroleum Exploration and Development
Licence 233 under the UK's 13th Onshore Licensing Round. This
licence, which is adjacent to Singleton, contains the Baxter's Copse
oil discovery (with estimated STOIIP of 3 MMBO) and the Burton Down
exploration prospect. The un-drilled Jurassic Burton Down prospect,
which lies on trend between Singleton and Storrington oil fields, has
a P50 oil in place resource potential of c. 25 MMBO. These
opportunities will be investigated for potential future development
and exploration drilling, respectively.

Galveston A-155 (10.8% interest) - Offshore, Gulf of Mexico

* Successful exploration project drilled in April 2008
* Currently being developed with projected start up in Q1 2009
* Net production estimated at up to 250 BOEPD

In April, the Company announced that a new gas discovery was made at
Galveston Island Block A-155 in the U.S. Gulf of Mexico, where
Providence holds a 10.8% working interest before project pay-out.
This new field is located c.100 kilometres off the US coast. It has
estimated recoverable reserves of 24 BCF and the partners immediately
elected to fast-track the development. This development is now
proceeding to plan and is expected to result in production start-up
in the first quarter of 2009. Anticipated net production to
Providence is up to 250 BOEPD.

New Production Opportunities

In addition to its plans to increase production from existing
production assets, Providence continues to evaluate a number of
production opportunities, both in existing areas of operation in the
U.K. and the Gulf of Mexico, but also in new geographic areas.
Importantly, with existing resources and the US$ 250 million
Macquarie revolving credit facility in place, the Company has the
financial capability to invest in appropriate development and
production opportunities as they arise.


DRILLING HIGHLIGHTS

Hook Head (53.2%) - Celtic Sea, Ireland

* Drilling commenced 5 August, 2008
* Well plugged and abandoned with gas shows on 26 August, 2008
* c. 30 ft of net hydrocarbon pay encountered

On 5 August, the Company announced that it had commenced the drilling
of an appraisal well on the Hook Head discovery. Hook Head is located
60 km offshore Wexford and is situated in Standard Exploration
Licence 2/07 in the North Celtic Sea Basin. This appraisal well was
the fourth well to be drilled on the Hook Head structure, the
previous wells having been drilled in 1971, 1978 and most recently,
in 2007. In all cases, hydrocarbons were encountered in reservoirs of
Lower Cretaceous age. This fourth well was designed to test the
hydrocarbon potential of the north-west panel of the structure.


On 26 August, the Company announced that, despite having encountered
c 30 ft of net hydrocarbon bearing section in this fourth well, it
had elected not to test the well and had commenced abandonment
procedures. The reason for this decision was that the net hydrocarbon
bearing interval in the 50/11-4 well was less than expected in the
pre-drill estimates, and there were also significant costs associated
with testing. The well results now suggest that the majority of the
Hook Head resource lies in the central part of the structure already
demonstrated by the 50/11-1 and 50/11-3 wells, however this
north-west panel could potentially provide additional incremental
resources for any future development in the area. The 50/11-4 well
results will now be integrated into the Hook Head full field model
before finalising forward plans for the accumulation.

Dunmore Drilling (53.2%) - Celtic Sea, Ireland

* Drilling commenced on 5 September, 2008
* Well suspended on 22 September, 2008
* Primary Jurassic sandstone reservoir logged as water wet
* Hydrocarbons logged in new Jurassic carbonate reservoir

On 5 September, the Company confirmed the spudding of the Dunmore
appraisal well, which is located some 20 kilometers north of the Hook
Head field. The Dunmore field is located in Standard Exploration
Licence 2/07 in the North Celtic Sea Basin, offshore southern
Ireland.

On 23 September, the Company announced that the well had been
suspended having reached a total depth (TD) of 5,214 ft measured
depth below rotary table. The Company confirmed that the primary
Jurassic sandstone reservoir interval was encountered within the
pre-drill depth prognosis, but the gross reservoir interval was
thinner than had been expected and sandstones present had been
determined to be water bearing based on well log data.

A new hydrocarbon bearing Jurassic carbonate reservoir zone was
encountered, which had not been anticipated prior to drilling. This
reservoir has c. 20 ft gross thickness and porosities of up to 23%.
The reservoir zone exhibited good oil and gas shows whilst drilling,
with a hydrocarbon down to the base and is located within a c. 400 ft
thick interval of gas rich shales. As this new play type may have
some considerable future potential, it was agreed to suspend the well
and de-mobilise the rig since operational timing, equipment
availability, and cost constraints precluded the deployment of the
required specialist testing equipment within the current drilling
programme. The partnership will now focus on integrating the results
of the Dunmore well, in particular on the new Jurassic carbonate play
potential. Forward programmes could include the deployment of
specialist testing equipment to obtain hydrocarbon samples and to
evaluate the productive potential of this interval.

Future Drilling

* Minimum five well programme currently being finalised

Looking further ahead, the Company is already actively planning for
further drilling in 2009 with a multi-well programme on certain
Triangle assets in the Gulf of Mexico and a minimum one-plus-one well
programme at Singleton. Additionally, the Company intends to drill
its Crosby Prospect in the East Irish Sea Basin in the spring of
2009. Obviously, the recent results from Hook Head and Dunmore will
now be assessed and will influence future drilling decisions in the
Celtic Sea. Off the west coast of Ireland, future drilling decisions
regarding Dunquin, Drombeg and Newgrange will be taken by ExxonMobil,
Sosina and the Company, whilst any drilling on Spanish Point will
follow on from the results of the planned 3D seismic programme.


DEVELOPMENT HIGHLIGHTS

Spanish Point (56% interest) - Porcupine Basin, Ireland

* Farm out announced with Chrysaor Limited
* 3D seismic programme being planned for Summer 2009

In August, following an extensive farm-out process, the Company was
pleased to confirm that, together with its partner Sosina Exploration
Ltd, it had signed a staged farm-out agreement with Chrysaor Holdings
Limited, a privately owned development-led company, on its Spanish
Point discovery, in the Porcupine Basin, off the west coast of
Ireland. Spanish Point is a proven discovery with estimated resources
of 1.4 TSCF and 160 MMBO. The farm out agreement covers Spanish
Point, Burren and the recently acquired FEL 4/08 licence.

The terms of the farm-out agreement provide for Chrysaor to conduct a
significant appraisal work programme on the Spanish Point discovery
in return for a minimum 30% interest in Spanish Point. Chrysaor then
has the option to earn up to a maximum 70% interest in the event that
two wells are subsequently drilled on Spanish Point. The agreement is
subject to certain milestones being achieved with an initial
commitment by Chrysaor to fund the budgeted cost of a 3D seismic
programme on Spanish Point as consideration for the initial 30%
interest.

Providence retains a 56% interest in, and the operatorship of,
Spanish Point for the upcoming 3D seismic programme, with Chrysaor
taking a 30% interest and Sosina holding a 14% interest. Providence
recently issued a market enquiry for the provision of a deep water 3D
seismic vessel for survey acquisition during the Summer 2008.
Dependent on the results of the 3D seismic programme, Chrysaor may
then undertake to finance the drilling of up to two appraisal wells
where it will commit not less than 60% cost share, whilst also
capping the other partners' cost share, to earn an additional
interest of up to 40%, thereby reducing the other partners' stakes
pro rata. The proposed assignment of the initial 30% interest to
Chrysaor is subject to Irish government approval.

AJE, OML 113 (5.0% Interest) - Offshore Western Nigeria

* Drilled in March 2008
* AJE 4 post well analysis being completed
* Development options being assessed for the AJE Field

The Company holds a 5% interest in OML 113, offshore Nigeria which
contains the AJE field. Earlier this year, the AJE partners
(comprising YFP, Chevron, Vitol, EER and Providence) drilled the
AJE-4 well to appraise the AJE field as well as to test deeper
exploration objectives. In April, the Company confirmed that the AJE
4 well had been successful and that it had exceeded pre-drill
expectations, encountering Cretaceous aged hydrocarbon bearing
sections, specifically, a gas condensate and oil bearing Turonian
reservoir together with oil bearing Cenomanian intervals. The well
also encountered deeper hydrocarbon bearing zones within the Albian
which had been part of the well's exploration objectives.

The AJE partnership is now examining the post drill results, in the
context of potential field development scenarios as well as examining
other exploration opportunities contained within OML 113. Providence
is also examining its options with regard to this asset.

Celtic Sea

The results of the 2008 Celtic Sea Drilling Programme may influence
the future plans for the potential development of the Celtic Sea
opportunities (Hook Head, Dunmore, Helvick, Ardmore, Blackrock and
the prospects contained within LO 1/07) and these will be considered
by Providence and its partners once the data has been assessed and
integrated.


EXPLORATION HIGHLIGHTS

Irish Exploration Licences (16%) - Porcupine and Goban Spur Basins,
Ireland

* ExxonMobil assumes operatorship of Dunquin
* New large prospect, Newgrange, identified in the Goban Spur
* 2D seismic data acquired over Drombeg

Dunquin (16% interest) - Porcupine Basin, Ireland

In March, the Company announced that ExxonMobil had assumed
operatorship from Providence of the Dunquin Prospect in the Porcupine
Basin, off the west coast of Ireland as of 31 March 2008. Providence
had been operator of this licence area since it was awarded in
November 2004. Additionally, and as had been anticipated following
ExxonMobil's entry to the Dunquin Licence in February 2006,
ExxonMobil advised the Company of its intention to farm out a portion
of its equity of Dunquin. This process is ongoing.

Newgrange (16% interest) - Goban Spur Basin, Ireland

Providence is continuing its technical evaluation of Licensing Option
06/1 in the Goban Spur following the acquisition of a 500 km 2D
seismic survey over the area in 2006. The Company, together with its
partners ExxonMobil and Sosina, recently agreed to relinquish six
blocks on the south side of the option area in order to focus on the
Newgrange Prospect, which is a large four way dip closed prospect
extending over a c.1,000 sq km area.

Drombeg (16% interest) - Porcupine Basin, Ireland

In March 2008, the Company announced that it had been awarded 13 new
blocks with its
Dunquin partners, ExxonMobil (80%) and Sosina (4%), under the 2007
Irish Porcupine
bidding round. These blocks lie close to and southwest of the Dunquin
licence in water
depths of c. 2,000-3,000 metres and contain the Drombeg Prospect.  In
June 2008, ExxonMobil, as operator, acquired a c.1,000 km long offset
2-D seismic data over the area. The data should help to better define
the prospectivity of the Drombeg area.


Other Exploration

Crosby (10%) - East Irish Sea, United Kingdom

In the East Irish Sea, the Company continues to work on its West
Lennox and Crosby prospects, where it holds a 10% stake, as well as
its 25% stake in licences 110/9b (Split) and 110/14b (Split).
Encouraging sub-surface studies have led the partners to upgrade the
estimated recoverable prospective resources at Crosby, and
accordingly they have elected to move forward with plans to drill the
Crosby  Prospect. Drilling, which is subject to contracting a rig,
could take place in Q1/Q2, 2009.

Pegasus, Dionysus and Orpheus (100%) - NE Celtic Sea, Ireland

Providence holds its 100% interest in the Pegasus, Dionysus and
Orpheus prospects in Standard Exploration Licence (SEL) 1/07. These
prospects are located to the north of Marathon's undeveloped Dragon
gas field, approximately 25% of which is mapped to extend into SEL
1/07.


OTHER HIGHLIGHTS

Kish Bank (50%) - Kish Basin, Ireland

* Licensing Option 08/2 awarded

In August, the Company announced that, in conjunction with its 50%
partner, Star Energy, which is wholly owned subsidiary of Petronas,
the Malaysian national oil company, it had been awarded a three year
Licensing Option over eight blocks in the Kish Bank Basin. The agreed
work programme will focus on the oil and gas exploration potential of
the basin.


Ulysses Project (50%) - Kish Basin, Ireland

* Commencement of Ulysses study regarding CO2  sequestration

Separately, Providence and Star also commenced the "ULYSSES Project",
a study to evaluate the carbon sequestration and natural gas storage
potential of the Kish Bank Basin, offshore Ireland. The Undersea
Large-scale Saline Sequestration and Enhanced Storage (or ULYSSES)
project has been designed to assess the potential use of Triassic
aged saline sandstone reservoir sequences as possible sites for
carbon sequestration. The presence of saline reservoirs which are
located c.1.5 km below the seabed together with overlying sealing
shale has been demonstrated in a number of oil and gas exploration
wells which have been drilled in the Kish Bank Basin over the past
c.30 years. The project area is located approximately 20 km offshore
Dublin. The recent inter-governmental report 'Assessment of the
Potential for Geological Storage of CO2 for the Island of Ireland'
indicated that the Kish Bank Basin held c. 270 Mt of CO2 effective
storage capacity.


Barryroe Licensing Option (30%) - Celtic Sea, Ireland

* Licensing Option 08/1 awarded to consortium

In July, the Company announced that the Barryroe Licensing Option had
been granted to
a consortium comprising Lansdowne (40 per cent), Island Oil & Gas plc
(30 per cent) and Providence (30 per cent). Lansdowne will act as the
operator of the licence for the period of time up to and including
the acquisition of any seismic data over the acreage. Thereafter,
Providence will become the operator for any drilling and development
activities.

The Barryroe Licence is covers the area which lies directly below the
Seven Heads Gas Field. Three previous wells tested oil at between
1,300 and 1,600 BOEPD. Oil tested was light crude (30 to 42 API),
with a high wax content. Potential development synergies with other
Celtic Sea projects are being reviewed by the Group. In the western
part of the Barryroe licence, situated to the west of the producing
Seven Heads Gas Field, the shallower section above 4,000 ft sub-sea
is also included in the Licensing Option and this is considered to be
prospective for gas.

From the previous technical work carried out, the two main challenges
to commercial development have been identified as the reservoir
continuity and the high pour point of the oil caused by the high wax
content. The significant increase in the price of oil since 2006 has
materially improved the likelihood that these reserves could be
exploited commercially.

The work programme for the new Licensing Option will focus on these
challenges and the potential synergies in reviewing development
options in parallel with other established oil accumulations in the
Celtic Sea. In particular, the appraisal and conceptual development
work being carried out by Providence on other Celtic Sea oil
accumulations may have an impact upon the development options being
considered for Barryroe.


BOARD CHANGES

In July, the Company announced that Mr. Stephen Carroll was stepping
down as Finance Director for health reasons. Mr. Philip O'Quigley was
appointed as Chief Financial Officer on that date and was appointed
to the Board as Finance Director in September 2008. The Company
wishes to convey its sincere thanks to Stephen Carroll, who was an
integral part of the Providence team since joining in 1999, for all
that he did for Providence and we wish him all the best for the
future.


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 compliance with all relevant
environmental rules and
regulations, the Company is also a contributing participant to the
Irish Government sponsored
initiative on new energy sources, including methane gas hydrates.


Providence also has a collaboration agreement with Hydrates Energy
International (HEI)
which is part of the advisory team to the U.S Government in respect
of hydrates. Providence
recently carried out a methane hydrate assessment study of the Irish
continental margin on
behalf of the Irish Petroleum Infrastructure Programme. This
programme counts oil majors
such as Shell, ExxonMobil, Chevron, Total and ENI amongst its
members.

The Company's new initiatives in gas storage and potential CO2
sequestration opportunities, being evaluated through its Ulysses
Project, are also very important steps in understanding how to safely
capture and dispose of CO2 in deep reservoirs. The main potential
environmental benefit, if successful, would be a significant
reduction in CO2 emissions to the atmosphere.


OUTLOOK

The Company has had an exceptionally active first half in 2008 and
this has continued through the summer period with activity involving
drilling, farm-outs, new licences and new partners. The Company has
delivered on its original production objective and now looks to build
on this with further drilling activities and potential acquisitions.

In the near future, the current drilling programme offshore Ireland
will be critical in deciding the forward plans for the Company's
asset base in the Celtic Sea. The Company looks forward to updating
shareholders on its forward drilling plans within the Triangle
portfolio as well as at Singleton. The combined proceeds from the
recent bond offering, the Macquarie $250 million facility and
increasing production cash flow, means the Company is well financed
to meet its current obligations.

We restate the belief that this tightly managed portfolio of assets
gives Providence shareholders a unique investment platform. We
believe that this strategy, together with the increased and stable
commodity price environment and the ever-growing global need for
secure and reliable sources of energy, means that Providence
shareholders can look to the future with real confidence and
optimism.


Tony O'Reilly
Chief
Executive

24 September, 2008

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