Placing of Convertible Bonds to Raise ¤42m &amp...

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED
STATES, CANADA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN

29 July 2008


                     PROVIDENCE RESOURCES P.l.c.


          PLACING OF CONVERTIBLE BONDS TO RAISE ¤42 MILLION

                                  &

  CONFIRMATION OF DELIVERY OF ARCTIC II RIG FOR APPRAISAL DRILLING
                     PROGRAMME OFFSHORE IRELAND


LONDON:  29  July  2008,  Providence  Resources  P.l.c.  ("Providence
Resources" or the "Company") announces the placing (the "Placing") of
convertible bonds ("Bonds") with institutional investors to raise ¤42
million before expenses.  The funds raised from the Bonds issue  will
be used to  fund the upcoming  drilling in the  Company's Celtic  Sea
Projects, where Providence has taken delivery of the rig, and to fund
certain potential new Gulf of Mexico Projects.

No application has been made for the Bonds to be listed or traded  on
any stock or investment exchange.  Application is, however,  expected
to be made for the Bonds to be listed on a stock exchange within  the
next 6 months.  The full terms  and conditions of  the Bonds will  be
contained in documents issued in connection with such listing.

The Bonds, denominated in units  of ¤100,000 each, carry interest  of
12% per annum,  payable semi-annually  in arrears, and  mature on  29
July 2012, at which time all  outstanding Bonds will be redeemed,  on
the basis of repayment of the principal value of the Bonds, plus  all
accrued and unpaid interest. At the election of the holder of a Bond,
the Bonds  are  convertible into  ordinary  shares of  nominal  value
¤0.001 each in the Company ("Ordinary Shares") at a conversion  price
of ¤0.10 per  Ordinary Share  at any time  on or  after 29  September
2008. The conversion price  represents a 19%  premium to the  closing
price on 21 July 2008 of ¤0.084,  the date on which the Board of  the
Company agreed  the terms  of  the Bonds.  Cenkos Securities  plc  is
acting for the Company in connection  with the Placing, which is  not
underwritten.

Providence also today announces that, together with its partners,
they have taken delivery of the GSF Arctic II ("Arctic II") semi
submersible drilling rig in anticipation of its upcoming multi-well
appraisal drilling programme at the Hook Head and Dunmore oil
accumulations in the north Celtic Sea, offshore Ireland.

The Arctic II came under contract over the weekend and the rig is
currently being mobilised to Irish waters. Providence and its
partners have contracted the Arctic II for a 2 firm well, plus 1
contingent well programme. Drilling is expected to commence within
the next 2 weeks. A further announcement regarding this drilling
programme will be made in due course.

Tony O' Reilly, Chief Executive of Providence Resources, commented:

"We are very pleased  to have successfully  completed the placing  of
this convertible bond which  will facilitate the ongoing  development
of the Company. In particular, the proceeds of this issue will  allow
the Company to pursue its  Celtic Sea drilling programme this  summer
as  well  as  giving  the  Company  flexibility  to  invest  in   new
opportunities in the Gulf of  Mexico. We are particularly  satisfied,
given the current volatility of the equity and debt markets, to  have
successfully completed  this financing.  I look  forward to  updating
shareholders on the progress of our drilling programme."


Contacts:

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

Powerscourt                                        Tel: [phone]
1446
Rory Godson/Elizabeth Rous

Murray Consultants                             Tel: [phone]
Pauline McAlester

Cenkos Securities Plc                         Tel: [phone]
Joe Nally

Davy                                                     Tel: + 353 1
679 6363
Eugenée Mulhern



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 (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. 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

Celtic Sea Standard Exploration Licence 2/07

Licence No 2/07 refers to part blocks 49/22, 49/23, 48/29, 48/30,
49/26, 49/27, 49/28, 49/8, 49/9, 49/13, 49/14, 50/6,
50/7 and 50/11 in the North Celtic Sea Basin. The current Standard
Exploration Licence 2/07 partners and their respective percentages
are Providence Resources Plc (Operator) 48.6556%, Challenger Minerals
(Celtic Sea) Limited 24.5%,  Forest Gate Resources Inc. 8.3889%,
Atlantic Petroleum (Ireland) Limited 12.3037% and Sosina Exploration
Limited 6.1519%.

About Hook Head

The Hook Head Field is located in c. 240' water depth being c. 60 km
offshore Wexford and is situated in Standard
Exploration Licence 2/07 in the North Celtic Sea Basin. The Hook Head
structure is a large mid-basinal anticline where
three previous wells have successfully encountered hydrocarbon
bearing sands. The original 50/11-1 discovery well,
which was drilled by Marathon in 1971, logged c. 100 feet of
hydrocarbon bearing section in five sandstone units of
Lower Cretaceous age. The well was not flow-tested due to severe
operational issues at that time. The subsequent
50/11-2 appraisal well, which was drilled by Marathon in 1975 was
drilled as a delineation well at the down-dip edge of
the structure and encountered c. 25' of hydrocarbon bearing section.

In 2007, Providence drilled the 50/11-3 well on a central location
some 2 km northeast of the 50/11-1 well and
successfully logged a total of c. 110' of net hydrocarbon bearing
reservoir. The reservoir zones are of equivalent age to
those encountered in the 50/11-1 & 2 wells, located c. 2.5 km and c.
5 km to the south-west, respectively. Whilst key
reservoir and fluid data were acquired during the initial well
flowing period, down-hole mechanical conditions, which
were primarily related to the integrity of the casing string cement
bond, delayed the implementation of a full flow test
programme. The 50/11-3 well was suspended for future re-entry and
potential use as a production well.

About Dunmore

The Dunmore oil discovery is located in c. 70 metre water depth being
c. 40 km offshore Wexford and is situated in
Standard Exploration Licence 2/07 in the North Celtic Sea Basin. The
50/6-1 discovery well was drilled in 1986 by Gulf
Oil (now part of Chevron), and tested a c. 60' gross interval at a
rate of c. 2,100 BOPD from sands of Upper Jurassic
age at a depth of c. 5,000' TVDSS. The oil is a light, sweet, 44o API
crude and is interpreted to be trapped in a
downthrown terrace structure. Mapping of reprocessed 2D seismic data
now suggest that this structure rises to the
east of the 50/6-1 well location and that an appraisal well would be
optimally drilled c. 500' up-dip from the 50/6-1 well.
On the assumption that a common contact exists between the 50/6-1
discovery well and this crestal area, a number of
sands which were water bearing in the original well should be oil
bearing at the crestal area thereby significantly
increasing the potential flow rates.



Cenkos Securities plc ("Cenkos"),  which is authorised and  regulated
in the United Kingdom by The Financial Services Authority, is  acting
exclusively for the  Company as nominated  adviser, joint broker  and
placing agent in connection  with the Placing.  Cenkos is not  acting
for any other person and will not be responsible to anyone other than
the Company  for providing  the protections  afforded to  clients  of
Cenkos or for advising any other  person in relation to the  Placing.
Neither the Bonds nor  the new Ordinary Shares  into which the  Bonds
are convertible have been, nor  will be, registered under the  United
States Securities Act of  1933 (as amended)  or under the  securities
legislation of any state  of the United States  of America or of  any
province or territory of Canada, Australia, Japan or the Republic  of
South Africa. There will  be no public offering  of the Bonds or  the
new Ordinary  Shares into  which  the Bonds  are convertible  in  the
United States. Subject to certain  exceptions, neither the Bonds  nor
the new Ordinary Shares into which  the Bonds are convertible may  be
directly or  indirectly  offered,  sold,  transferred,  taken  up  or
delivered in,  into or  from the  United States,  Canada,  Australia,
Japan  or  the  Republic  of    South  Africa  or  their   respective
territories or possessions.  This announcement does not constitute an
offer to sell or issue or the  solicitation of an offer to buy  Bonds
or the new Ordinary  Shares into which the  Bonds are convertible  in
any jurisdiction in  which such  offer or  solicitation is  unlawful.
Accordingly, copies of this announcement  are not being and must  not
be mailed or  otherwise distributed or  sent in or  into or from  the
United States,  Canada, Australia,  Japan or  the Republic  of  South
Africa  and  any  person   receiving  this  announcement   (including
custodians, nominees and trustees) must not distribute or send it  in
or into or from  the United States, Canada,  Australia, Japan or  the
Republic of South Africa. This announcement has not been approved  by
Cenkos for the purposes of section  21 of the Financial Services  and
Markets Act 2000. This announcement has not been examined or approved
by The Financial Services Authority  or the London Stock Exchange  or
any other regulatory authority.

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