Kinsale Head Option Update

25 May 2010
Embargo 7am


                           KINSALE HEAD OPTION UPDATE

  * PROVIDENCE ADVISES PETRONAS THAT IT WILL NOT PROCEED TO COMPLETE THE KINSALE
    HEAD TRANSACTION


  * UPFRONT INVESTMENT AT SIGNIFICANT VARIANCE TO ORIGINAL PROPOSAL AND IMPACTS
    ON DEAL ECONOMICS



Providence Resources P.l.c. ('Providence'), the AIM and ESM listed exploration
and production company, today announces that it has elected not to complete the
acquisition of 40% of the Kinsale Head Assets because the upfront investment
required is now at a significant variance to the original proposal and the
economics of the deal have therefore changed materially. Providence has advised
PETRONAS accordingly. An option, exercised in September 2009 with an initial
cash deposit of $3.8 million, gave Providence's wholly owned subsidiary, EIRGAS
Limited ('EIRGAS'), the right to acquire up to a 40% interest in the 100%
operated Kinsale Head Area (comprising the Kinsale Head, South West Kinsale and
Ballycotton gas fields) and up to a 40% interest in the 86.5% operated adjacent
producing Seven Heads gas field (collectively referred to as the "Kinsale Head
Area assets"). The initial deposit (incl. interest) will now be refunded in
full.

Under the terms of the Option Agreement, EIRGAS was to purchase its stake in the
Kinsale Head Area assets on the same pro-rata terms by which PETRONAS acquired
its stake from Marathon Oil Corporation in April 2009. That transaction had a
total value of US$ 180 million, with an effective date of 1st January 2008. The
Closing of this transaction was subject to regulatory approval with its
financing being met from cash resources and banking facilities.

Commenting Mr O'Reilly, Chief Executive of Providence said:

"Due to a combination of updated financial data and increased funding
requirements, it became clear that the transaction no longer represented the
same opportunity for Providence shareholders. Whilst the long term economics of
gas storage are compelling, and Kinsale represents a unique world class asset,
the short term marked erosion in gas prices, combined with a different planned
capital structure going forward, led us to withdraw."

"Looking at our overall exploration and development portfolio, and noting the
longer term development nature represented by this opportunity, the board took a
view that it was in the best interests not to proceed as it no longer presented
the same financial dynamics for shareholders."

"Having invested time and resources in assessing the gas storage business model,
we firmly believe in its merits and through our EIRGAS subsidiary, we will
continue to exploit the gas storage opportunities in our Dragon Field and Kish
Bank licence interests."

The Company's AGM will take place on Wednesday, May 26th, 2010 and a market
update will be provided shortly thereafter.

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

Powerscourt                                                        Tel: +44
207 250 1446
Rob Greening/Lisa Kavangh

Murray Consultants                                             Tel: +353
1 498 0300
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 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 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 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.


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