NEW FARM-OUT DEAL AGREED IN CELTIC SEA

23 February 2007 Providence Resources P.l.c. NEW FARM-OUT DEAL AGREED IN CELTIC SEA Providence, the AIM (London) and IEX (Dublin) listed oil & gas exploration and production company, today announced that it has agreed a further farm-out agreement on its Celtic Sea area interests, held under Standard Exploration Licence 2/07, off the south coast of Ireland. This farm-out is subject to approval from the Irish Minister for Communications, Marine and Natural Resources. Providence has agreed to farm-out a further 15% of Celtic Sea Standard Exploration Licence 2/07 to Forest Gate Resources Inc, a Canadian Exploration company listed on the Toronto Stock Exchange . This is the first time that Forest Gate Resources Inc has invested in offshore Ireland. Subject to Irish Government approval of this farm-out, the equity stake of Providence will reduce to 40% in Licence 2/07 with the remaining equity percentages being 15% for Forest Gate Resources Inc, 15% for Challenger Minerals (Celtic Sea) Limited, (a subsidiary of GlobalSantaFe Corporation), 15% for Dyas BV, 10% for Atlantic Petroleum (Ireland) Limited, and 5% for Midmar Energy Limited. The Celtic Sea Licence 2/07 contains the following: * "Ardmore" gas discovery * "Helvick" oil field * "Hook Head" oil & gas discovery * "Dunmore" oil discovery Commenting on the farm-out agreements, Tony O'Reilly Jnr., Chief Executive of Providence Resources P.l.c., said: "We are delighted Forest Gate Resources has joined us in our Celtic Sea programme. Having now fully assembled our licence partnership, we can now focus on finalising our plans for 2007. We anticipate being in a position to announce additional details on the 2007 drilling programme within the next few months". Contacts: Providence Resources P.l.c. Tony O'Reilly Jnr., Chief Executive Tel: + 353 (1) 219 4074 Powerscourt Media Victoria Brough Tel: + 44 (0) 207 236 5622 Murray Consultants Pauline McAlester Tel: + 353 (1) 498 0300 Notes to Editors About Providence Providence Resources P.l.c. is an independent oil and gas exploration company listed on AIM (London) and IEX (Dublin) markets. 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), the Gulf of Mexico (USA) and West Africa (offshore Nigeria). Providence's portfolio is balanced between production, appraisal and exploration assets, as well as being diversified geographically. Recent key corporate announcements include: * Celtic Sea Farm-out to DYAS and Atlantic Petroleum (announced Feb 7th, 2007) * Grant of Standard Exploration Licence 1/07 and 2/07 offshore Ireland (announced Feb 6th, 2007) * Award of Licence in UK 24th Seaward Round (announced Feb 2nd, 2007) * Providence makes oil and gas discovery in Gulf of Mexico (announced Jan 25th, 2007) * Award of Goban Spur Licencing Option with ExxonMobil & Sosina (announced Nov 1st 2006) * Secures Rig Slot for 2007 (announced Sept. 25th, 2006); * 20% Farm-out Deal agreed with CMI on Celtic Sea Licences (announced Sept 5th, 2006); * Completion of Dunquin Seismic (announced Aug. 8th, 2006); * Increased production at its Singleton oilfield (announced March 7th, 2006); * Dunquin Farm-out to ExxonMobil (announced on Feb 13th, 2006); and * ¤50 million Revolving Credit Finance Facility with Macquarie (announced on Feb 2nd, 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 all available from Providence's website at www.providenceresources.com Celtic Sea Licence No 2/07 Licence No 2/07 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 50/11,12 ('Hook Head'); Part blocks 50/6, 50/7 ('Dunmore'); About Forest Gate Resources Inc Forest Gate is a publicly traded mineral exploration company with diamond properties in Canada. The company's shares trade under the symbol FGT on the TSX Venture Exchange. Forest Gate continues to own diamond properties in Saskatchewan and Quebec. However, the company plans to focus on oil and gas exploration both internationally and domestically. ---END OF MESSAGE---
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