Providence Resources P.l.c. End of Year Trading...

PROVIDENCE RESOURCES P.l.c.
                      END OF YEAR TRADING STATEMENT 2009


2009 HIGHLIGHTS


PRODUCTION
  * Kinsale Head Field, Ireland: Exercised Option to acquire 40% of Kinsale Head
    gas production and storage operations from PETRONAS
  * Singleton Field, Onshore UK: Drilled X-10 well which led to increase in
    field oil production by c. 50%
  * Gulf of Mexico, US: Production uplift from well re-completion at VR 60 and
    start-up of production at Galveston A-155 gas field


APPRAISAL/ DEVELOPMENT
  * Spanish Point and Burren Discoveries, Ireland: Acquired 300 km(2) of 3-D
    seismic data
  * OML113, Offshore Nigeria: Declaration of commerciality of the Aje field and
    acquisition of new 2-D Seismic over block


EXPLORATION
  * Dunquin Prospect, Ireland: Farm out of 40% interest to ENI and drilling of
    exploration well commitment made by the Operator, ExxonMobil
  * St George’s Channel: Increased acreage of SEL 1/07 which abuts and includes
    the Dragon discovery in the UK sector of the Celtic Sea


CORPORATE
  * Placing of shares in June raised €16.8 million
  * New $100 million senior secured reduced borrowing base facility arranged
    with BNP Paribas and cancellation of the Macquarie facility
  * Establishment of special purpose vehicles, EIRGAS Limited and Exola Limited,
    to focus on gas storage and unconventional oil projects



2010 OUTLOOK

PRODUCTION
  * Kinsale Head Field, Ireland: Finalise Kinsale Head transaction and progress
    expansion of gas storage operations
  * Singleton Field, Onshore UK: Programme to increase production rates to over
    800 BOPD through well stimulation programme
  * Singleton Field, Onshore UK: Commencement of gas to wire programme to
    monetise value from flared gas (c. 200 BOEPD)
  * Gulf of Mexico, US: Various planned re-completes and recommencement of oil
    production from SS253 field


APPRAISAL/ DEVELOPMENT
  * Spanish Point and Burren Discoveries, Ireland: Full analysis of 3-D seismic
    data and definition of forward programme
  * Celtic Sea, Ireland: Unlock the value of existing oil discoveries in the
    Celtic Sea through special purpose vehicle, Exola Limited


EXPLORATION
  * Dunquin Prospect, Ireland: Well site survey in preparation for drilling
    operations
  * Carbon Capture and Storage (CCS): Explore the commercial feasibility of the
    geological storage of carbon dioxide offshore Ireland in light of recently
    introduced Irish carbon tax of $22 per tonne


Commenting on activity during 2009 and future plans for 2010, Tony O’Reilly,
Chief
Executive of Providence Resources P.l.c., said:

“I am pleased to report that Providence continues to deliver on ambitious
targets across its asset portfolio. As well as achieving its’ corporate and
project milestones through the addition of reserves and the sanctioning of
projects, the Company has also been able to participate in a transformational
deal to acquire 40% of the Kinsale Head assets. This transaction not only gives
Providence its first Irish production but, importantly, also provides part
ownership of Ireland’s only operating gas storage facility.

“Moreover, the deal has served to re-define the future structure of the
business: The EIRGAS subsidiary being established specifically to operate and
develop gas storage and CCS opportunities, and Exola Limited being incorporated
to marshal the Group’s Celtic Sea oil assets, where it will focus on
unconventional oil and marginal field developments. By creating this structure,
Providence will be able to continue to focus on its core business of growing
production levels, unlocking the value of its undeveloped oil and gas
discoveries and advancing its many exploration projects.

“Across the portfolio, we expect to see the significant maturing of our
development and exploration projects. We anticipate that production levels will
continue to grow to c. 5,000 BOEPD from production increases at Singleton, the
planned re-commencement of production in the US Gulf of Mexico and the
attributable gas production from EIRGAS. Of particular note during 2010 will be
the Spanish Point and Burren discoveries, where the initial 3D seismic results
are highly encouraging. The work planned on these two discoveries, taken
together with the Dunquin exploration prospect, where a well commitment has now
been made, confirm that the Irish Atlantic margin has become the focus of
growing and material industry investment.

 “Providence enters 2010 with a clear strategy, strong partners and a growing
reserve base, together with a maturing and dynamic asset portfolio. Combined
with the solid financial base of growing production cash flow and the new BNP
Paribas credit facility, I remain confident that Providence represents a strong
long term investment proposition for shareholders.”


Contacts:

Providence Resources P.l.c.  Tel: [phone]
Tony O’Reilly, 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. 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
<

http://www.providenceresources.com/>.

About EIRGAS Limited

EIRGAS  Limited is a SPV (special  purpose vehicle) established by Providence to
invest  in gas  storage and  CCS opportunities  offshore Ireland  and the United
Kingdom. EIRGAS is currently owned 100% by Providence.


About Exola Limited

Exola Limited is a SPV (special purpose vehicle) being established by Providence
to invest in heavy and unconventional oil developments and opportunities
offshore Ireland and the United Kingdom. Exola is currently owned 100% by
Providence.




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