Oil and Gas Discovery in the Gulf of Mexico

25th January 2007
     Providence Resources P.l.c. ("Providence" or the "Company")
               PROVIDENCE MAKES OIL AND GAS DISCOVERY
                IN THE GULF OF MEXICO, OFFSHORE TEXAS
Providence Resources P.l.c.,  the Irish oil  and gas exploration  and
development company  whose  shares are  listed  in London  (AIM)  and
Dublin (IEX), is pleased  to announce that it  has made a  successful
oil and  gas discovery  in High  Island Block  A-268 in  the Gulf  of
Mexico, offshore Texas. It is planned  that this new field, which  is
located 125 kilometres off the coast of Texas and in which Providence
holds a 5% working interest, will undergo a fast-track development to
existing infrastructure. First production  from the field is  planned
for later this year (2007).
Speaking today,  Tony O'Reilly  Jnr, Chief  Executive of  Providence,
said:
"We are delighted to be a part of this successful drilling  programme
in  the  Gulf  of  Mexico.  This  High  Island  project  is  part  of
Providence's objective to increase its daily production rates and  we
are delighted that the  consortium is planning to  move ahead with  a
fast track development programme for the second half of 2007."
"Whilst final  production rates  are still  to be  determined, it  is
anticipated that initial  field rates  will be  in the  region of  14
MMSCFGPD and 280 BOPD (c.100 BOEPD net to Providence) when production
starts later this  year, significantly increasing  our present  daily
production. Drilling and development costs will be met from  existing
Providence financing resources."
"Furthermore, the  encouraging  results  from  this  well,  give  the
Company greater confidence as to  the potential for further step  out
locations and associated  incremental production from  this block  in
the future. In addition, Providence,  as part of a US-based  industry
consortium, continues to examine other such opportunities in the Gulf
of Mexico as  we look  to continually increase  our daily  production
rates in a timely and cost-effective manner."
Contacts:
Providence Resources P.l.c
Tony O'Reilly Jnr., Chief Executive Tel: + 353 (1) 2194074
Powerscourt Media
Victoria Brough Tel: [phone]
Murray Consultants
Pauline McAlester Tel: + 353 (1) 498 0300

Notes to Editors:

About the High Island A-268 OCS-G 22268 #1 discovery well
The OCS-G 22268 #1 well, in which Providence holds a 5% working
interest, was drilled in 165 feet of water on High Island block A-268
using the TODCO 207 jack-up drilling unit. The well was drilled to a
deviated total depth of 8,172 ft TVDSS.
The well was drilled on a Tertiary-aged gas-condensate target with
pre-drill most likely recoverable resource estimate of 10 BSCFE. A
number of additional similar geological targets have also been
identified within the High Island A-268 block totalling a further 28
BSCFE of potential resources and these are now being assessed as
locations for possible future drilling.
Significant hydrocarbon shows were recorded across the target
reservoir sands during drilling operations and subsequent logging
together with modular dynamic testing (MDT) have revealed the
presence of a number of gas and condensate bearing intervals. Two
primary reservoir zones have been identified with a total logged pay
thickness of c. 100 feet. Average porosities derived from well log
analysis and core data range 25-30% suggesting excellent reservoir
quality. A production liner is being set across these reservoir
intervals in preparation for completing as a producing well.
Partners in the High Island A-268 block include Challenger Minerals
Inc. (Operator, part of the GlobalSantaFe Corporation), Peregrine, RP
Joint Venture (which comprises Reeder, HRB Oil& Gas), Pruet Offshore,
Warren American Offshore, HDO Gulf Energy, Cottesloe Oil & Gas.

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  UK (onshore  and offshore)  and West  Africa
(offshore  Nigeria).  Providence's  portfolio  is  balanced   between
production, appraisal  and  exploration  assets,  as  well  as  being
diversified geographically.
Key corporate announcements include:

     * Conclusion of Seismic Survey (announced Nov. 8th, 2006)
     * Award of Goban Spur Licencing Option with ExxonMobil & Sosina
       (announced Nov.1st 2006)
     * Blackrock Update - OBS (announced Oct. 26th 2006
     * Interim Results (announced Sept. 27th, 2006)
     * Secures Rig Slot for 2007 (announced Sept. 25th, 2006);
     * Gardline Geosurveys Ltd Survey (announced Sept. 15th, 2006);
     * 20% Farm-out Deal agreed with CMI on Celtic Sea Licences
       (announced Sept. 5th, 2006);
     * Completion of Dunquin Seismic (announced Aug. 8th, 2006);
     * Annual General Meeting Statement (announced on June 20th,
       2006);
     * Annual Results (announced on May 17th, 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 available
from Providence's website at www.providenceresources.com
Glossary of technical terms used in this announcement
'MMSCFGPD' million standard cubic feet of gas per day
'BOPD' barrels of oil per day
'BOEPD' barrels of oil equivalent per day
'BSCFE' billion standard cubic feet of gas equivalent
'TVDSS' true vertical depth sub-sea
'MMBOE' millions of barrels of oil equivalent
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 National University of Ireland, Galway and an M.Sc. in
Technology Management from The Smurfit School of Business at
University College Dublin. John has worked in the offshore business
for 17 years and is a fellow of the Geological Society of London.
Definitions in this press release are consistent with SPE guidelines.

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