Providence Divests its Gulf of Mexico Oil &...

1st April 2011
Embargo 7am

PROVIDENCE DIVESTS ITS GULF OF MEXICO OIL & GAS PORTFOLIO FOR UP TO $22 MILLION

Providence Resources P.l.c., ("Providence") the Irish oil and gas exploration
and production company, whose shares are quoted in London (AIM) and Dublin
(ESM), announces the immediate sale of its US oil and gas portfolio in the Gulf
of Mexico to Dynamic Offshore Resources LLC ("Dynamic") for a consideration of
up to $22 million. The consideration comprises an initial cash payment of $15
million, and potentially an additional $7 million deferred cash payment. This
deferred cash payment is dependent on Dynamic reaching certain production levels
from any new wells drilled on Ship Shoal 252, 253 and 267 prior to January
2013. Total current production from Providence's Gulf of Mexico portfolio
amounts to c. 700 BOEPD.

The proceeds of the sale, which closed on 31st March, 2011, are to be applied to
a reduction of the Company's Reserve Backed Lending Facility with BNP Paribas.
The sale will result in the impairment of the carrying value of the assets, and
will necessitate a non-cash write-off to be taken in Providence's 2010 accounts.
 CIBC World Markets Plc acted as exclusive financial adviser to Providence on
this transaction.

Commenting, Mr. Tony O'Reilly, Chief Executive of Providence said:

"Whilst the production from the Gulf of Mexico has played an important role in
the development of the Company over the past 3 years, it is now less material
going forward. With our major multi-year, multi-basin drilling programme
offshore Ireland starting, combined with our ongoing investment programme at
Singleton, the investment focus for the Company is now very clear. As such, the
opportunity to realise cash from the Gulf of Mexico portfolio, and to deleverage
the core business, made sense."

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


 Powerscourt                      Tel: [phone]
 Rob Greening/Lisa Kavanagh


 Murray Consultants               Tel: [phone]
 Pauline McAlester


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


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




EXPLANATORY NOTES

About Providence
Providence Resources Plc is Irish based oil and gas exploration and production
company listed on AIM (London) and ESM (Dublin). Providence's portfolio includes
extensive licence interests in Ireland (offshore), as well as licences in the
U.K. (onshore and offshore) and West Africa (offshore Nigeria).

Providence recently announced a multi-year, multi-well offshore drilling
campaign to cover the six basins in which the Company has licence interests
offshore Ireland. Providence and partners plan to invest upwards of $500 million
in the drilling of a number of exploration and development wells, with first
drilling planned to commence later in 2011. This programme represents the
largest drilling campaign ever carried out offshore Ireland.

Comprehensive information (press releases & Company reports) are available at
www.providenceresources.com.

Gulf of Mexico Portfolio

Asset             Location       Operator  %     Type

High Island A-268 Gulf of Mexico Peregrine 5.0%  Oil & gas production

Galveston A-155   Gulf of Mexico Peregrine 10.8% Gas production

Ship Shoal 252*   Gulf of Mexico Dynamic   50.0% Oil & gas production

Ship Shoal 253*   Gulf of Mexico Dynamic   50.0% Oil and gas production

Ship Shoal 267*   Gulf of Mexico Dynamic   50.0% Oil and gas production

Main Pass 19      Gulf of Mexico Petsec    45.0% Oil and gas production

East Cameron 257  Gulf of Mexico Dynamic   12.5% Gas production

Vermillion 60     Gulf of Mexico Dynamic   50.0% Gas production

Ridge             Louisiana      Brammer   30.0% Gas production


* Earned interest through well bore participation


The carrying value of Providence's Gulf of Mexico portfolio was approximately
€44 million in Providence's 2009 accounts.

Announcement
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.

Glossary of Terms Used
BOEPD Barrels of Oil Equivalent Per Day
BOPD Barrels of Oil Per Day
BOE Barrels of Oil Equivalent (1 BOE = 6,000 SCFG)

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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