PROVIDENCE AGREES TO ACQUIRE MAJORITY STAKE IN ...

2 April 2007


             PROVIDENCE AGREES TO ACQUIRE MAJORITY STAKE
   IN SINGLETON OIL FIELD AND AGREES STRATEGIC INITIATIVE FOR GAS
                         STORAGE IN IRELAND

Providence, the  AIM (London)  and IEX  (Dublin) listed  oil and  gas
exploration and  production  company,  today announced  that  it  has
reached conditional agreement  with Star Energy  Group PLC (STAR)  to
acquire its  79.125%  share in  the  producing Singleton  Oil  Field,
onshore UK. Subject to regulatory approval and contract, Providence's
interest in the Singleton Oil Field will therefore increase from  20%
to 99.125%.  The remaining  0.875% of  the field  is owned  by  Noble
Resources.

The principal terms of the proposed transaction are as follows:

     * A total cash consideration of US $ 22 million
     * Star and Providence agree a 50:50 JV on a proposed CNG
       (Compressed Natural Gas) Project at the Singleton site to
       capture the economic value of associated gas production
     * Star to be given a first option to utilise the Singleton Oil
       Field for Gas Storage purposes in the future, working with
       Providence on a 50:50 basis
     * Providence and Star agree to work together on future gas
       storage opportunities in the Republic of Ireland, again on a
       50:50 basis.

Commenting on  the proposed  transaction, Tony  O'Reilly Jnr.,  Chief
Executive of Providence Resources P.l.c., said:

"This is a  pivotal transaction for  Providence as it  allows us  the
opportunity to  substantially increase  our daily  oil production  to
approximately 600 BOPD (circa. 219,000 barrels per annum). This  will
ensure a solid operating cash flow on which to build our operations.

Having owned  20%  of  Singleton  for over  15  years,  we  are  very
comfortable with its operational parameters as well as its geological
opportunities and we see upside in both these areas going forward.

"We are also very pleased to continue working with Star Energy,  both
on the CNG Project at Singleton as well as agreeing to work  together
on gas storage opportunities in Ireland".


Roland Wessel, Chief Executive of Star said:

"The sale of our stake in Singleton underlines the Company's strategy
to focus on building a  significant multi-site gas storage  business.
Singleton is  a  valuable,  producing asset  but,  with  limited  gas
storage potential,  it  was  no  longer core  to  our  business.  The
proceeds will be reinvested in pursuit of our gas storage strategy.

"Having worked with Providence for  many years at Singleton, we  look
forward to working with them in developing gas storage  opportunities
in Ireland, where we believe there are many suitable structures,  and
where Providence is the largest offshore licence holder".

Contacts:

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

Powerscourt Media
Victoria Brough Tel: + 44 (0)207 250 1446

Murray Consultants
Pauline McAlester Tel: + 353 (1)498 0300

For Star Energy
Star Energy Tel: + 44 (0)207 925 2121
Roland Wessel, Chief Executive

Financial Dynamics
Ben Brewerton/ Ed Westropp Tel: [phone]


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:

     * Ireland 2007 Celtic Sea Drilling Programme (announced March
       30th, 2007)
     * Celtic Sea Licence 3/07, OBS Survey & 3 Farm ins (announced
       March 28th, 2007)
     * Initial Farm out at Spanish Point (announced March 15th, 2007)
     * Celtic Sea Farm-out to Forest Gate Resources Inc. (announced
       Feb 23rd, 2007)
     * Celtic Sea Farm-out to DYAS and Atlantic Petroleum (announced
       Feb 7th, 2007)
     * Grant of Irish Standard Exploration Licence 1/07 & 2/07
       (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

About Singleton

The Singleton Field is located 7km north of Chichester in the onshore
licence PL 240 in the Weald Basin in the south of England. The  field
consists of two east west trending elongate horst blocks divided by a
narrow graben. The  wells produce  from the  Great Oolite  formation,
consisting predominantly of oolitic lime grainstones deposited during
transgressive/regressive episodes and has been sub-divided into three
members.

The  field  has  been  producing   since  1986.  Oil  production   is
approximately 600 BOPD from 6 wells. Estimates of STOIIP in the Great
Oolite reservoir are approximately  70 MMSTB. Cumulative recovery  to
31 December 2006  was 3.37MMSTB,  representing a  recovery factor  of
4.8%. Produced  oil at  37* API  is trucked  to the  Holybourne  Rail
terminal.

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