Providence and Shell Sign Memorandum of Agreement

Embargo 7am
7th February 2011


              PROVIDENCE AND SHELL SIGN MEMORANDUM OF AGREEMENT


Providence Resources P.l.c., ('Providence') the Irish oil and gas exploration
and production company, whose shares are listed in London (AIM) and Dublin
(ESM), is pleased to confirm that it has signed a Memorandum of Agreement with
Shell International Trading and Shipping Company Limited to negotiate an oil off
take sale and purchase agreement relating to future potential oil production
 from its Barryroe and Hook Head oil discoveries, located in the North Celtic
Sea Basin off the south coast of Ireland.


Contacts:

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


 Powerscourt                  Tel: [phone]
 Rob Greening/Lisa Kavanagh


 Murray Consultants           Tel: [phone]
 Pauline McAlester


 Cenkos Securities Plc        Tel: [phone]
 Nick Wells/Adrian Hargrave


 J&E Davy                     Tel: + 353 (0)1 679 6363
 Stephen Barry




NOTES TO EDITORS:

About Providence
Providence Resources Plc is an independent oil and gas exploration and
production company listed on the AIM market in London and on Dublin's ESM
market. Providence's active oil and gas portfolio includes interests in Ireland,
the United Kingdom, the United States (Gulf of Mexico) and West Africa
(Nigeria). Providence's portfolio is balanced between production, appraisal and
exploration assets, as well as being diversified geographically. Further
information on Providence and its oil and gas portfolio, including Annual
Reports are available from Providence's website atwww.providenceresources.com.

About Shell Trading
The Shell Trading business encompasses the full range of trading and shipping
activities throughout the Shell Group.  With trading volumes of about 13 million
barrels of oil equivalent per day, spread over physical crude oil, refined
products, natural gas, electrical power, chemical feedstocks and environmental
products, the organisation has the skill base and international scope to
capitalise on trading opportunities inherent in Shell's asset and market
positions around the world. For more information, visitwww.shell.com.

About Barryroe
The Barryroe oil discovery lies directly below the Seven Heads Gas Field where
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 of Cretaceous
Middle and Lower Wealden age located between c. 4,500' TVDSS and 7,550' TVDSS.
The oil is light (30 to 42 degrees API) and contains relatively high wax content
ranging from 12 to 22 per cent, which may require treatment at surface. A third
party audit carried out by RPS Energy for Lansdowne indicated P50 and P10 STOIIP
estimates for Barryroe of 373 MMBO and 893 MMBO, respectively. The corresponding
2C and 3C Barryroe recoverable contingent resources are 59 MMBO and 144 MMBO,
respectively.  Providence holds an operated 50.0% interest in Barryroe with
partners San Leon Energy plc (30.0%) and Lansdowne Oil & Gas plc (20.0%).

About Hook Head
The Hook Head oil discovery is located in the North Celtic Sea Basin in c. 80
metre water depth and is situated some c. 65 kilometers off the south coast of
Ireland. Originally discovered by Marathon oil in 1971, four wells have been
drilled to date on the structure all of which have either logged and/or tested
hydrocarbons to surface. Analysis suggests that the oil appears to be a high
pour point crude with a gravity of 27o API and wax content of 10-20%. The most
recent in-house volumetric estimates suggest that this oil accumulation could
contain an in place resource potential of up to c. 120 MMBO. Providence
currently holds an operated 72.5% interest in Hook Head with partners Atlantic
Petroleum (18.5%) and Sosina Exploration (9%). In October 2010, Providence
granted Sosina Exploration an option to acquire a 50% equity interest in Hook
Head in return for the for the drilling of an appraisal well in 2011.

Announcement
In accordance with the AIM Rules - Guidance for Mining and Oil & Gas Companies,
the information contained in this announcement has been reviewed and approved by
John O'Sullivan, Exploration Manager of Providence Resources P.l.c. John
O'Sullivan is a Geology graduate of University College Cork and holds a Masters
in Geophysics from The National University of Ireland, Galway. John also holds a
Masters in Technology Management from the Smurfit Graduate School of Business at
University College Dublin and is presently completing a dissertation leading to
a PhD in Geology at Trinity College, Dublin. John is a Fellow of the Geological
Society and a member of the Petroleum Exploration Society of Great Britain. He
has 20 years experience in the oil and gas exploration and production industry
and is a qualified person as defined in the guidance note for Mining Oil & Gas
Companies, March 2006 of the London Stock Exchange.


SPE/WPC/AAPG/SPEE  Petroleum Resource  Management System  2007 has been  used in
preparing this announcement







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Source: Providence Resources plc via Thomson Reuters ONE

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