Providence and Star Energy Commence "ULYSS...

18 August 2008
Embargo 7am


        PROVIDENCE AND STAR ENERGY COMMENCE 'ULYSSES' PROJECT

*       PROJECT TO ASSESS CARBON SEQUESTRATION AND NATURAL GAS
  STORAGE POTENTIAL OF THE KISH BANK BASIN, OFFSHORE DUBLIN


Providence Resources P.l.c., ('Providence') the Irish oil and gas
production and development company, whose shares are listed in London
(AIM) and Dublin (IEX), is pleased to announce the commencement of
the "ULYSSES Project", a study to evaluate the carbon sequestration
and natural gas storage potential of the Kish Bank Basin, offshore
Ireland. The study is being carried out on a 50/50 joint venture
basis with Star Energy Group plc ('Star Energy'), which is a
wholly-owned subsidiary of Petronas, the Malaysian National Oil
Company. Star Energy is a leading UK gas storage company, with gas
storage developments both onshore and offshore United Kingdom and
Western Europe.

Providence and Star Energy were recently awarded a three year
Licensing Option over eight blocks in the Kish Bank Basin by the
Irish Government Department of Energy, Communications & Natural
Resources. The agreed work programme will focus on the oil and gas
exploration potential of the basin while the ULYSSES Project will
specifically assess the potential for underground saline reservoirs
in the Kish Bank Basin to be used as sites for CO2 sequestration as
well as natural gas storage.

Speaking today, Tony O'Reilly, Chief Executive of Providence, said:

"Providence has been evaluating various gas storage opportunities
together with Star Energy since both companies entered into the Irish
Gas Storage Memorandum of Understanding (MOU), as part of the
Singleton transaction which was completed in 2007. The ULYSSES
Project is the first of these opportunities that Providence and Star
Energy have agreed to proceed with and is particularly exciting for
Providence given its proximity to the city of Dublin, with its large
carbon footprint.

We look forward to working with the Star Energy, the leading UK gas
storage player, in evaluating the potential of this project. If
successful, we hope that the ULYSSES Project may contribute to
reducing Ireland's carbon footprint as well as possibly increasing
its natural gas storage capacity, both of which have been identified
by the Irish Government as strategic national energy objectives."

Speaking today, Roland Wessel, Chief Executive of Star Energy, said:

'We are excited to be working with Providence on the ULYSSES Project
which has the potential to be the first successful offshore carbon
sequestration project in both Ireland and the United Kingdom.'


Contacts:

Providence Resources P.l.c.
                                                      Tel: [phone]
4074
Tony O'Reilly, Chief Executive

Star Energy
Group                                                                        Tel:
[phone]
Roland Wessel, Chief Executive

Powerscourt

Tel: [phone]
Rory Godson/Elizabeth Rous

Murray Consultants

Tel: [phone]
Pauline McAlester
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 (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.

About Star Energy Group plc

Star Energy Group plc is an energy company with a primary focus on
gas storage development. Founded in 1999, Star Energy is the UK's
second largest onshore oil producer and one of the main developers of
underground gas storage using depleted oil and gas reservoirs. Star
Energy employs over 150 people and has a turnover in excess of £50
million per annum. In early 2008, Petronas International Corporation
Limited, a subsidiary of Petronas, acquired 100% of Star Energy.
Petronas, wholly-owned by the Malaysian government, is a
fully-integrated oil and gas corporation and is ranked among FORTUNE
Global 500's largest corporations in the world.

About the ULYSSES Project

The Undersea Large-scale Saline Sequestration and Enhanced Storage
(or ULYSSES) Project has been designed to assess the potential use of
Triassic aged saline sandstone reservoir sequences as possible sites
for carbon sequestration. The presence of saline reservoirs which are
located c. 1.5 km below the seabed together with overlying sealing
shale has been demonstrated in a number of oil and gas exploration
wells which have been drilled in the Kish Bank Basin over the past c.
30 years. The project area is located approximately 20 km offshore
Dublin.

A similar offshore saline reservoir CO2 sequestration project known
as Sleipner has been successfully operated in the Norwegian North Sea
by StatoilHydro since 1996. This project was designed to offset
carbon tax liabilities estimated to be c. US$50 million/year.
StatoilHydro recently (April 2008) reported that it had to date
sequestered 10 million tonnes of carbon dioxide since project
start-up. Other partners in the Sleipner Project include ExxonMobil
and Total.

Marathon Oil operates Ireland's only gas storage facility at the SW
Kinsale Head field, offshore Cork. This facility which has been
operational since 2001 has a storage capacity of 5-7 BSCF. The latest
Irish Governmental Green Paper on Energy recommends that Ireland
should have at least 3 months of reserve/ storage capacity which
equates to c. 45 BSCF. In this regard, Providence and Star are also
planning to evaluate other saline offshore reservoirs in terms of
their conventional natural gas storage potential.


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 the National University of Ireland, Galway and a M.Sc.in
Technology Management from The Smurfit School of Business at
University College Dublin. John is presently working part-time on a
PhD dissertation at Trinity College, Dublin. John has worked in the
offshore business for 19 years and is a fellow of the Geological
Society of London and member of the Energy Institute. Definitions in
this press release are consistent with SPE guidelines.

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