Providence Resources P.l.c. Full Year Results 2007

Embargo 7.00am
19 May 2008


                     PROVIDENCE RESOURCES P.l.c.

                     PRELIMINARY RESULTS FOR THE
                     YEAR ENDED 31 DECEMBER 2007


2007 FINANCIAL HIGHLIGHTS


  * Turnover up 217% to ¤4.333 million (2006: ¤1.997 million)



  * Profit for the year, after exceptional items, of ¤0.569 million
    (2006: loss ¤1.623 million)



  * $250 Million Revolving Credit Facility secured with Macquarie
    Bank



  * Share Placing raises ¤25.774 million



RECENT OPERATIONAL HIGHLIGHTS


  * Agreement reached to acquire a portfolio of assets in Gulf of
    Mexico from Triangle, trebling production up to 2,000 BOEPD



  * Arctic 2 Rig secured for summer '08 Celtic Sea multi-well
    drilling programme



  * 13 new blocks awarded to Providence, ExxonMobil and Sosina over
    the Drombeg prospect in the Porcupine Basin



  * New gas discovery/development at Galveston A 155 in the Gulf of
    Mexico



  * Additional acreage awarded to Providence, CMI and Sosina adjacent
    to Spanish Point



  * Successful appraisal well drilled at AJE-4 in OML 113, offshore
    Nigeria



  * Strategic joint venture on future gas storage initiatives in
    Ireland with Star Energy



Commenting on  today's results,  Tony  O'Reilly, Chief  Executive  of
Providence Resources P.l.c. said:

"2007 was a highly successful year both operationally and financially
for the Company and its shareholders and I am pleased to report that
2008 has started off even better.

"The Company was in a strong position during the year to take
advantage of a number of opportunities. In particular, I would
highlight the acquisition of the majority stake in the Singleton
oilfield, substantially increasing daily oil production, and the
discovery of oil at Hook Head in the Celtic Sea.  The Company also
restructured the business through a share placing in April 2007 and a
new $250 million financing facility with Macquarie Bank Ltd
("Macquarie") in November 2007. These developments will facilitate
the growth and progression of its extensive portfolio of interests in
the UK, Ireland, Africa and the U.S.A.

"Notable events so far in 2008 include the successful drilling of a
well at Galveston A155 in the Gulf of Mexico and at AJE 4 in OML 113,
offshore Nigeria, both of which have substantially exceeded our
pre-drill expectations. The Company has further consolidated its
acreage position offshore Ireland and most importantly, in a very
competitive market, the Company has secured the GlobalSantaFe Arctic
2 rig for its upcoming summer drilling campaign in the Celtic Sea.

"The recent proposed acquisition of the portfolio of assets in the
Gulf of Mexico is another major milestone for the Company, taking the
combined daily production up to ~ 2,000 BOEPD.  The combination of
internally generated production cash flow, which more than covers the
Company's base operating activities, the new Macquarie facility and
other general financing options means that the Company will be
appropriately financed to continue to advance its extensive portfolio
of appraisal, development and exploration assets.

"The Company looks forward to advancing on behalf of its shareholders
its appraisal / development projects for 2008. These projects include
the multi-well drilling programme scheduled for Hook Head/ Dunmore
for this summer. The success of the recently drilled Galveston A-155
well has resulted in the Operator considering the installation of a
purpose built production platform to allow for the anticipated
production rates, which are now forecast to exceed original
projections. Additionally, following the drilling of AJE 4, the
Company, together with its partners, is now examining all options to
maximise value from this significant oil and gas field.

"Finally, the Company will, in conjunction with its partners, look to
advance the exploration and development potential of its 4 major
assets off the west coast of Ireland at Dunquin, Drombeg, Goban Spur
and Spanish Point/Burren.

"Providence has a very clear strategy, with solid production cash
flow businesses, exciting appraisal and development projects, and
high impact exploration projects. We look forward to the future with
great excitement and enthusiasm".


Contacts:

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

Powerscourt Media
Elizabeth Rous/ Rory Godson
Tel: + 44 (0) 207 250 1446

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

Financial Year Results

European Union (EU) law and the IEX and AIM stock exchange rules
require that the Group's annual consolidated financial statements for
2007 be prepared in accordance with IFRS's adopted by the EU.
Accordingly, the 2007 consolidated financial statements, together
with the 2006 comparatives, have been adapted and transitioned, on a
consistent basis, from Irish GAAP to IFRS.

Turnover for the year ended 31 December 2007 was up 217% to
¤4,333,000 (2006: ¤1,997,000). The majority of the revenues for the
year came from the Company's interest in the producing UK onshore
Singleton oil field. In November, 2007, the Company closed the
transaction which saw it increase its beneficial interest in
Singleton from 20% to 99.125%. The Company also derived some revenue
from its 5% interest in the High Island A-268 field which commenced
operations in August 2007.

Revenues benefited from the higher oil price in 2007 with the average
oil price per barrel at US$72 compared with US$65 in 2006. An
operating profit of ¤116,000 (before exceptional items) was recorded
in 2007 (2006: loss of ¤698,000). The Exceptional   items, which
impacted the 2007 accounts included a.) a charge of ¤3.604 million
for the expensing of the Macquarie financing costs, b.) a charge of
¤0.380 million for the impairment on available for sale assets, c.) a
credit of ¤4.351 million for negative goodwill that arose from the
acquisition of the majority stake in the Singleton field, and d.) a
credit of ¤0.718 million relating to the reduction of the Helvick
decommissioning provision following the farm out of a 56.5% interest
in the Celtic Sea asset. The negative goodwill credit arises due to a
combination of strengthening long term oil price scenarios and
increasing recoverable reserves at Singleton as of the acquisition
completion date (November 2007) relative to the purchase price agreed
earlier in 2007. The net impact of these items, all of which were
non-cash, was a credit of ¤1.085 million. Factoring in the
exceptional items resulted in a profit on ordinary activities before
tax of ¤1.489 million (2006: loss of ¤0.937 million) and an after tax
profit of ¤569,000 (2006: loss of ¤1.623 million). Shareholders'
funds increased to ¤43.932 million (2006: ¤12.823 million). Fully
diluted earning per share was 0.02 cents (2006: loss of 0.07 cents).


Financing

In April 2007, the Company placed 368.2 million new ordinary shares
at Euro 7.0 cents per share, raising gross proceeds of approximately
¤25.774 million before expenses (the "Placing") through Cenkos
Securities plc. The proceeds of this Placing were allocated to the
2007 appraisal drilling of Hook Head, the drilling of a fourth well
on the AJE project in Nigeria and general working capital purposes.

In November 2007, the Company announced a US$ 250 million financing
facility with the specialist energy bank, Macquarie Bank. This
revolving credit facility allowed the Company to re-finance its ¤50
million revolving credit facility. As before, this larger facility
will allow the Company to pursue investment and development
opportunities, with financing secured on any assets to be acquired
and/or to be developed. The Company utilised US $15.5 million of the
Macquarie facility for the acquisition of the majority stake in
Singleton.
OPERATIONAL HIGHLIGHTS - PRODUCTION

Agreed Offer to Acquire Triangle Oil & Gas Portfolio in Gulf of
Mexico (100%)


  * Acquisition Price of $67.5 million
  * Net Production to Providence at 1,300 BOEPD
  * Significant upside potential
  * Financed through Macquarie Facility


The Company recently announced that it has agreed to acquire a
portfolio of producing and development assets in the US Gulf of
Mexico from Triangle Oil and Gas Inc., a private company based in
Lafayette, Louisiana, for a total consideration of US$67.5 million
(approx. c ¤43.5 million). The transaction is subject to regulatory
approvals.

The portfolio of assets to be acquired represents all of Triangle's
material hydrocarbon assets and comprises interests in 8 producing
fields and 2 development assets.  Current net production is circa 6
MMSCFGD and 300 BOPD (~1,300 BOEPD) net to Providence. There are also
a number of undeveloped discoveries as well as exploration
opportunities within the portfolio. The acquisition is being financed
by Macquarie.


Singleton (99.125% interest) - Onshore, United Kingdom


  * Acquired 79.125% stake from Star Energy
  * Agreed programme with Star on CNG Development
  * Independent Audit - Upgraded Resources/Reserves
  * Production of 510 BOPD + 1.2 MMSCFD
  * Future production drilling planned


During 2007, the Singleton Field, in which the Company now has a
99.125% interest, produced an average of 510 BOPD. The Company
announced the acquisition of the 79.125% stake from Star Energy in
April 2007 and the transaction closed in November 2007. The cost was
$15.5 million and was financed through the Macquarie facility. As
part of the transaction, the vendor, Star Energy, and Providence
agreed a programme to handle the field's surplus gas production. The
proposed Singleton Compressed Natural Gas (CNG) Project is planned to
unlock the full potential value from up to 200 BOEPD of associated
gas currently being produced at Singleton. In addition, the CNG
facility should also allow increased oil production from existing and
future development wells.

Further work continues to be carried out to evaluate methodologies to
increase production rates and financial returns from the Singleton
Field. A recent third party independent field audit, (prepared by RPS
Energy) has established 2P net reserves as of 1 January 2008 of 3.1
MMBOE and 3P reserves of 7.5 MMBOE, which is a net increase of 614%
and 1,140% respectively as of 1 January 2007 (this comprises both the
increases in equity ownership and  technically assignable reserves).
With 71 million stock tank barrels of oil initially in place
(STOIIP), and with less than 4 million barrels having been recovered
to date, the Company believes that there are many opportunities to
further enhance field recovery rates. Accordingly, it is currently
reviewing plans for future development well drilling in Q4 2008 or Q1
2009, the precise time dependant on equipment availability.
High Island A-268 (5% Interest) - Gulf of Mexico, United States


  * 2 wells successfully drilled in 2007
  * Brought into production late August 2007
  * Average net production to date of 76 BOEPD


During 2007, the Company, and its partners, successfully drilled and
developed the High Island A-268 project. Having made the initial
discovery in January 2007, the quick development cycles associated
with assets in the Gulf of Mexico meant that the Company, and its
partners, were able to bring the field into production (plus drill a
second production well) within 8 months.

With reserves of circa 6.6 BCFE, this field was the Company's first
investment in the Gulf of Mexico and success here has played an
important role in our decision making regarding the recent Triangle
acquisition. Field net production to Providence has averaged 76 BOEPD
from field start-up and production is expected to be increased over
the next few months when the Operator completes a planned work-over
on one of the wells.


OPERATIONAL HIGHLIGHTS - DEVELOPMENT/APPRAISAL

Hook Head (43.5% interest) - Celtic Sea, Ireland


  * Discovery of oil at Hook Head Prospect
  * GSF Arctic 2 Rig Secured
  * Multi-well programme for summer 2008
  * Dunmore possibly to be drilled

In October 2007, the Company, together with its partners, announced
that drilling had confirmed a significant oil accumulation at Hook
Head in the Celtic Sea. Unfortunately, whilst key reservoir and fluid
data were acquired during the initial well flowing period, down-hole
mechanical conditions, which were primarily related to the integrity
of the casing string cement bond, delayed the implementation of the
full test programme. This, combined with time limitations relating to
the rig contract, precluded the execution of a full well test.

Suitably encouraged by this development, the partners agreed to move
forward with the Hook Head appraisal programme and in Q1 2008, the
Company announced that it had secured the GlobalSantaFe Arctic 2 rig
for a 2 firm plus 1 contingent well drilling programme for this
summer. Drilling is expected to commence in July/August 2008 and the
partners may also elect to drill not only Hook Head, but also an
appraisal well on an adjacent oil discovery, called Dunmore.
Galveston A 155 (10.8%) - Gulf of Mexico

*          Drilled in April 2008
*          New platform to be installed
*          Fast track development planned

In April 2008, the Company announced that Providence and its partners
had made a new gas discovery on Galveston Island Block A-155 in the
U.S. Gulf of Mexico. Providence holds a 10.8% working interest before
project pay-out. This new field is located c. 100 kilometres off the
US coast. Having exceeded pre-drill expectations (>13 BCF), the
partners immediately elected to fast-track the development. Due to
the better than expected drilling results, the Operator is now
considering the installation of a purpose built production platform
allowing for increased production rates. It is anticipated that the
field will be on stream by Q1 2009.


AJE, OML 113 (5.0% Interest) - Offshore Western Nigeria

*          New partnership formed
*          Drilled in March 2008
*          AJE 4 post well analysis being completed
*          Development options being assessed for the AJE Field

The Company joined the AJE Consortium in 2005 through the drilling of
the AJE 3 well where it held a 7.03% interest. In 2007, this original
partnership was dissolved by the Operator, Yinka Folawiyo, because
the partnership had not met their contractual obligations to drill a
second well within a specified time frame. Accordingly, the Operator
assembled a new partnership group and Providence was subsequently
invited into this partnership on new equity terms. This new
partnership, which includes Chevron and Vitol, immediately set about
drilling the AJE 4 well, which commenced in February 2008.

In April 2008, the Company confirmed that the AJE 4 well had been
successful and that it had exceeded pre-drill expectations,
encountering Cretaceous aged hydrocarbon bearing sections,
specifically, a gas condensate and oil bearing Turonian reservoir
with oil bearing Cenomanian intervals. The partnership also drilled a
deeper exploration target, the results of which have not been
released to date. The AJE partnership is now examining the post drill
results, in the context of potential field development scenarios and
a further update on forward plans is expected later this year.
Providence is also examining its options with regard to this asset.


Spanish Point (72% interest) - Porcupine Basin, Ireland


  * Farm out process ongoing
  * Additional acreage awarded under 2007 Porcupine Licensing Round


The Company continues its farm out process on the Spanish Point
project. In March, the Company was awarded additional acreage
adjacent to the Spanish Point discovery under the Irish government's
2007 Porcupine Licensing Round. It is envisaged that any farm out of
Spanish Point will also include the Burren oil discovery as well as
the new adjacent blocks, which may contain extensions to the Spanish
Point and Burren hydrocarbon systems.
OPERATIONAL HIGHLIGHTS - EXPLORATION

Dunquin (16% interest) - Porcupine Basin, Ireland

*          ExxonMobil takes over Operatorship

In March 2008, the Company  announced that by agreement,  ExxonMobil,
would take over Operatorship from Providence of the Dunquin  Prospect
in the Porcupine Basin, off the west coast of Ireland as of 31  March
2008. Providence had been Operator of this licence area since it  was
awarded in November 2004. Additionally,  and as had been  anticipated
following  ExxonMobil's  entry to  the  Dunquin Licence  in  February
2006, ExxonMobil advised the Company of their intention to farm out a
portion of  their  equity  of  Dunquin.  This  process  is  presently
underway. Under the  licence terms,  a firm  well is  required to  be
committed on Dunquin by November 2008.


Goban Spur (16% interest) - Goban Spur Basin, Ireland

Seismic processing was carried out by the partnership following on
from the licensing of 500 km of long offset 2-D seismic survey that
was carried over this 15 block area during the summer of 2006. An
existing database of c. 5,500 line kilometres of vintage 2-D seismic
data together with potential field data have been integrated with the
new data to provide an overall assessment of the prospectivity of the
area. As a result of this work, a number of significant leads and
prospects have been identified in the area and these are presently
being integrated within a broader petroleum systems analysis of the
South Porcupine and Goban Spur Basins which include the Dunquin and
Drombeg licences.


Drombeg (16% interest) - Goban Spur Basin, Ireland

In March 2008, the Company announced that it has been awarded 13 new
blocks with its Dunquin partners, ExxonMobil (80%) and Sosina (4%),
under the 2007 Irish Porcupine bidding Round. These blocks lie close
to and southwest of the Dunquin licence in water depths of c.
2,000-3,000 metres and contain the Drombeg prospect. ExxonMobil, as
Operator, recently confirmed that a 2-D seismic survey would commence
over the acreage in June 2008. This seismic programme will entail the
acquisition of up to 3,000 line kilometres of long offset 2-D seismic
data. These data should help to better define the prospectivity of
the Drombeg area.

OTHER

Joint Study Report with Island Oil & Gas

In September 2006, Providence  announced that it  had agreed to  work
together with Island Oil & Gas  Plc to develop a common strategy  for
the joint development of both companies' Celtic Sea oil assets  based
on a shared floating production facility. This work is ongoing.

MOU with Star Energy

As part of the Singleton transaction, Providence and Star Energy
agreed additional matters, including the CNG Agreement. The two
companies also agreed a strategic joint venture on future gas storage
initiatives in Ireland.  Providence sees gas storage as a potential
future strand to its business model. The Irish Government has stated
that increased national gas storage capacity should be a strategic
initiative, given the country's exposure within the European gas
supply network coupled with the high degree of imported supply. Star
Energy, now a wholly owned subsidiary of Petronas, is a leading
operator and developer of gas storage systems both onshore and
offshore United Kingdom. The companies have recently begun to
evaluate various opportunities offshore Ireland.


ENERGY AND THE ENVIRONMENT

The Company believes that it has a role to play in addressing energy
supply in an environmentally responsible manner. In addition to its
ongoing exploration and development initiatives, which are carried
out in compliance with all relevant environmental rules and
regulations, the Company is also a contributing participant to the
Irish Government sponsored initiative on new energy sources,
including methane gas hydrates.

Providence also has a collaboration agreement with Hydrates Energy
International (HEI) which is part of the advisory team to the U.S
Government in respect of Hydrates. Providence recently carried out a
Methane Hydrate Assessment Study of the Irish Continental Margin on
behalf of the Irish Petroleum Infrastructure Programme. This
programme counts oil majors such as Shell, ExxonMobil, Chevron, Total
and ENI amongst its members.


OUTLOOK

The Company is expecting a period of high activity in 2008 with an
active drilling programme, the consolidation of our recent
acquisition of production assets and the completion of ongoing
farm-out discussions on a number of its assets.  The Company
continues to actively evaluate new opportunities, in both existing
areas in which it operates and new territories that fit the Company's
stated strategy of having a balanced portfolio of production,
appraisal/development and high impact exploration assets.

We restate the belief that this tightly managed portfolio of assets
strategy gives Providence shareholders a unique investment platform.
We believe that this strategy, together with the increased and stable
commodity price environment and the ever-growing global need for
secure and reliable sources of energy, means that Providence
shareholders can look to the future with real optimism.

Tony O'Reilly
Chief
Executive

19 May 2008



ASSETS BY REGION

Asset
Location
Operator            %           Type

UNITED STATES

High Island A 268             Gulf of Mexico, U.S.A.
            Peregrine          5.0%       Oil and gas production
Galveston A 155               Gulf of Mexico,
U.S.A.                        Peregrine         10.8%      Gas
development
Ship Shoal SS 252*          Gulf of Mexico,
U.S.A.                        SPN                50.0%      Oil and
gas production
Ship Shoal SS 253*          Gulf of Mexico,
U.S.A.                        SPN                50.0%      Oil and
gas production
Ship Shoal SS 267           Gulf of Mexico,
U.S.A.                        SPN                50.0%      Oil and
gas development
Main Pass 19                   Gulf of Mexico,
U.S.A.                        Petsec            45.0%      Oil and
gas production
Mobile MO 861                 Gulf of Mexico,
U.S.A.                        Triangle           50.0%     Gas
production
East Cameron EC 257      Gulf of Mexico,
U.S.A.                        SPN                12.5%     Gas
production
West Cameron WC 333    Gulf of Mexico, U.S.A.
Mariner            32.5%     Gas production
Vermillion VR 60              Gulf of Mexico,
U.S.A.                        SPN                50.0%     Gas
production
Ridge                              Onshore Louisiana,
U.S.A                  Brammer          30.0%     Gas production
Main Pass 89                  Gulf of Mexico,
U.S.A.                        Beryl                17.5%    Gas
production
*Earned interest through well bore
** Back-in rights for 25% of 70% after pay out

IRELAND

Pegasus                        NE Celtic Sea,
Ireland                         Providence     100.0%      Oil and
gas exploration
Orpheus                        NE Celtic Sea,
Ireland                          Providence    100.0%      Oil and
gas exploration
Dionysus                       NE Celtic Sea,
Ireland                         Providence     100.0%      Oil and
gas exploration
Dragon (part)                  NE Celtic Sea,
Ireland                        Marathon      c. 25.0%     Gas
development
Hook Head                     Celtic Sea,
Ireland                             Providence       43.5%      Oil
discovery
Dunmore                        Celtic Sea,
Ireland                             Providence       43.5%      Oil
discovery
Helvick                           Celtic Sea,
Ireland                            Providence        43.5%      Oil
discovery
Ardmore                         Celtic Sea,
Ireland                            Providence        43.5%      Gas
discovery
Blackrock                       Celtic Sea,
Ireland                            Providence        43.5%      Oil
discovery
Spanish Point                 Porcupine Basin,
Ireland                   Providence         72.0%      Gas
development
Burren                            Porcupine Basin, Ireland
       Providence         72.0%      Oil discovery
FEL 4/08                        Porcupine Basin,
Ireland                   Providence         72.0%      Oil and gas
exploration
Dunquin                          Porcupine Basin, Ireland
     ExxonMobil        16.0%      Oil and gas exploration
Drombeg                        Porcupine Basin,
Ireland                  ExxonMobil         16.0%      Oil and gas
exploration
Goban Spur                    Porcupine Basin, Ireland
  Providence          16.0%      Oil and gas exploration

UNITED KINGDOM

Singleton                                                    Onshore,
U.K.                                Providence           99.1%*   Oil
and gas production
West  Lennox                   Offshore   Morecambe  Bay,   U.K.
 CMI                     10.0%     Oil discovery
Crosby                           Offshore Morecambe Bay, U.K.
 CMI                     10.0%     Oil and gas exploration
110/9b(p) & 110/14b(p)    Offshore Morecambe Bay, UK
CMI                      25.0%    Oil and gas exploration

* 99.125%

NIGERIA
AJE                               Offshore Nigeria,
Africa                   YFP/Chevron           5.0%    Oil and gas
development


About Providence

Providence Resources P.l.c. is an independent oil and gas exploration
company traded  on the  AIM (London)  and IEX  (Dublin) markets.  The
Company was founded in 1997, but  with roots going back to 1981  when
its 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  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 its 2005 AIM Admission document, 2006 Annual
Report, Interim Report 2007 and recent press releases are all
available from Providence's website at www.providenceresources.com


Review

This Preliminary Announcement of Results for the year ended 31
December 2007 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 both the Energy Institute and the Petroleum
Exploration Society of Great Britain. He has 18 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

ALL FIGURES QUOTED ARE GROSS FIGURES, UNLESS OTHERWISE STATED

STOIIP
Stock Tank Oil Initially In Place
BOPD
            Barrels of Oil Per Day
MMSCFGD
Million Standard Cubic Feet of Gas Per Day
BOE
Barrels of Oil Equivalent (1 BOE = 6,000 SCFG)
MMBOE
Millions  of Barrels of Oil Equivalent
BOEPD
Barrels of Oil Equivalent Per Day
SCFG
Standard Cubic Foot of Gas
BCF
Billion Standard Cubic Feet of Gas
BCFE
Billion Standard Cubic Feet of Gas Equivalent
GAAP
Generally Accepted Accounting Practice
IFRS
International Financial Reporting Standards
2P
Reserves
Proven plus probable reserves
3P
Reserves
Proven plus probable plus possible

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


Providence Resources P.l.c.
Consolidated income statement
for the year ended 31 December
2007




Before

Exceptional  Exceptional

items            items            Total             Total

2007             2007             2007             2006

¤'000            ¤'000           ¤'000            ¤'000

Continuing
operations
Revenue
            4,333                    -            4,333
1,997
Cost of
sales
(1,477)              718              (759)           (549)

______         ______

Gross
profit
2,856               718            3,574            1,448

Administration expenses
(2,003)                   -           (2,003)          (1,315)
Pre-licence expenditure
(737)                   -              (737)             (831)
Negative goodwill on acquisition of
Singleton
                    -            4,351
4,351                    -

______         ______

Operating
profit/(loss)
116            5,069            5,185              (698)

Finance income
     539                    -               539                 78
Finance expenses
   (251)          (3,984)         (4,235)             (317)

______         ______


Profit/(loss) before income tax
404            1,085            1,489              (937)
Income tax expense
(920)                   -              (920)             (686)

______         ______

Profit/(loss) for the year from
 continuing operations
(516)           1,085               569           (1,623)

                                            ______         ______


Earnings/(loss) per share (cent)
Basic earnings/(loss) per share

0.02             (0.08)
Diluted earnings/(loss) per share

 0.02             (0.07)

______





Providence Resources P.l.c.
Consolidated balance sheet
At 31 December
2007
        2007                      2006

¤'000                     ¤'000
Assets

Exploration and evaluation
assets
30,980                   13,016
Development and production
assets
 25,004                     1,318
Property, furniture and
equipment
142                        167
Available for sale equity instruments
                               872                             -

                     ______                  ______

Total non-current
assets
56,998                   14,501

______                  ______

Trade and other
receivables
                         4,534                     2,479
Cash and cash
equivalents
    11,396                     4,481

______                  ______

Total current
assets
15,930                     6,960


______                  ______

Total
assets
 72,928                   21,461


                     ______                  ______
Equity
Share
capital
14,162                   13,785
Share
premium
 55,239                   30,956
Singleton revaluation
reserve
3,357                          -
Capital conversion reserve
fund
 623                        623
Foreign currency translation
reserve
(217)                         95
Share based payment
reserve
968                        398
Macquarie loan warrant
reserve
3,666                     1,441
Retained
earnings
(33,866)                 (34,475)

______

Total equity attributable to equity holders of the Company
            43,932                   12,823

________                        ________
Liabilities

Loans and
borrowings
9,139                     3,588
Decommissioning
provision
1,113                     1,626
Deferred
tax
  3,983                        686

______                            ______

Total non-current
liabilities
14,235                     5,900


Trade and other
payables                                                                       14,761
2,738

______                  ______

Total
liabilities
       28,996                     8,638

                     ______                  ______

Total equity and
liabilities
72,928                   21,461

______                  ______

Providence Resources P.l.c.
Consolidated statement of cash flows
for the year ended 31 December 2007

          2007                            2006

¤'000                           ¤'000
Cash flows from operating activities

Profit/(loss) before income tax for the
year
1,489                             (937)
Adjustments for:
Depletion and
depreciation
     633                               239
Change in Helvick decommissioning
provision
(718)                               -
Negative goodwill on Singleton
acquisition
  (4,351)                              -
Finance
income
     (539)                             (78)
Finance
expense
    4,235                              317
Equity-settled share based payment
charge
610                              318
Change in trade and other
receivables
(2,055)                         (1,674)
Change in trade and other
payables
9,493                              808
Foreign exchange
adjustments
  (312)                               95


                     ______                        ______

Net cash inflow/(outflow) from operating
activities
8,485                             (912)

______                        ______

Cash flows from investing
activities
Interest
received
  539                                  78
Acquisition of exploration and evaluation
assets
(17,964)                          (2,111)
Acquisition of development and production
assets
(2,619)                            (145)
Acquisition of property, furniture and
equipment
(30)                            (160)
Acquisition of available for sale equity
instruments
(1,252)                               -
Acquisition of subsidiary
undertaking
(9,263)                               -

______                        ______

Net cash used in investing
activities
(30,589)                         (2,338)

                     ______                        ______

Cash flows from financing activities
Proceeds from issue of share
capital
26,010                                26
Payment of transaction
costs
(1,350)                               -
Repayment of loans and
borrowings
(4,780)                             (67)
Proceeds from drawdown of loans and
borrowings
9,139                            4,780

______                        ______

Net cash from financing
activities
29,019                            4,739


      ______                        ______

Net increase in cash and cash
equivalents
6,915                            1,489

Cash and cash equivalents at 1
January
4,481                            2,992

______                        ______

Cash and cash equivalents at 31
December
11,396                          4,481

      ______                        ______

---END OF MESSAGE---