Licensing Option Award

14 July 2008

     Providence Resources P.l.c. ("Providence" or the "Company")



                      Providence Resources plc

                       Licensing Option Award

Providence Resources P.l.c., the AIM and IEX listed oil and gas
exploration and development company, is pleased to announce  that it
has been awarded a new Licensing Option in the North Celtic Sea
basin, off the south coast of Ireland.

The Barryroe Licensing Option ("Barryroe Licence") has been granted
to Lansdowne (40 per cent), Island Oil & Gas plc ("Island") (30 per
cent) and Providence Resources plc ("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 over acreage which lies directly below
    the  Seven Heads Gas Field
  * Three previous wells tested oil at between 1,300 and 1,600 BOPD
  * 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 acreage, situated to
    the west of the producing Seven Heads Gas Field,  the shallower
    section above 4000ft sub-sea is also included in the Licensing
    Option and this is considered to be prospective for gas


The new Licence has been renamed Barryroe to avoid confusion with the
Seven Heads Gas Field which is partly situated above the deeper oil
accumulations. Part of the Barryroe acreage lies beneath the Seven
Heads Gas Field, with the boundary between the two concessions lying
at 4,000ft (approximately 1,250m) sub-sea. Within the Barryroe area
oil has been successfully tested at flow rates of between 1,300 and
1,600 BOPD, from three exploration or appraisal wells. The reservoir
sands are in the Cretaceous Middle and Lower Wealden sequences
between 1,400m and 2,300m (approximately 4,600 to 7,550ft) below sea
level. The oil is light (30 to 42 degrees API) and contains
relatively high wax contents ranging from 12 to 22 per cent, which
may require treatment to avoid production difficulties.

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 upon 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.


Contacts:

Providence Resources P.l.c.                               Tel: +353 1
219 4074
Tony O'Reilly Jnr., Chief Executive

Powerscourt
                        Tel: [phone]
Rory Godson/Elizabeth Rous

Murray Consultants                                               Tel:
[phone]
Pauline McAlester


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 United Kingdom (onshore and offshore), the
United States (offshore) and West 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 all press releases, annual reports and interim
reports are available from Providence's website at
www.providenceresources.com.

About Barryroe

Three wells within the Licensing Option area have tested oil:


 1. 48/24-1 drilled by Esso in 1973/1974 tested oil from Middle
    Wealden sands at an aggregate rate of 1300 barrels per day



 1. 48/28-1 drilled drilled by Esso in 1974 tested oil from a Middle
    Wealden sand at 1527 barrels per day



 1. 48/24-3 drilled by Marathon in 1990 tested oil from Lower Wealden
    sands at an aggregate rate of 1619 barrels per day




This announcement has been reviewed by John O'Sullivan, Exploration
Manager, Providence Resources P.l.c. John holds a B.Sc. in Geology
from University College Cork, Ireland, an M.Sc. in Applied Geophysics
from the National University of Ireland, Galway and a M.Sc.in
Technology Management from The Smurfit School of Business at
University College Dublin. John is presently working part-time on a
PhD dissertation at Trinity College, Dublin. John has worked in the
offshore business for 19 years and is a fellow of the Geological
Society of London and member of the Energy Institute. Definitions in
this press release are consistent with SPE guidelines.

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