Providence Resources plc : 2011 Celtic Sea Dril...

Embargo: 7:00am
19(th) October 2011

                        2011 CELTIC SEA DRILLING UPDATE

  * Standard Exploration Licence 1/11 granted over an increased Barryroe area

  * Well programme finalised using new fast-track 3D seismic data

  * GSF Arctic III rig expected to commence drilling operations in November

Providence Resources P.l.c., ('Providence') the London (AIM) and Dublin (ESM)
listed oil and gas exploration and production company, is pleased to provide an
update on its upcoming appraisal drilling programme in the North Celtic Sea
Basin, offshore southern Ireland.

  * The Barryroe partners have been awarded Standard Exploration Licence 1/11
    ("Licence") over the Barryroe oil discovery by the Irish Minister for
    Communications, Energy and Natural Resources, Pat Rabbitte TD, for a period
    of up to six years, split into two three year phases. This Licence is a
    successor authorisation to Licensing Option 08/1. The areal extent of the
    Licence has been increased by approximately 9% (c. 25 sq km) to cover
    additional acreage with identified resource potential.  The partners have
    committed to the drilling of at least one well during the first phase, which
    will be fulfilled by the upcoming 48/24-J well. Providence holds a 50%
    interest in the Licence and operates on behalf of its partners San Leon
    Energy Plc (30%) and Lansdowne Oil & Gas Plc (20%).

  * The 48/24-J well location and programme have been finalised using a fast-
    track 3D seismic volume. The planned well will offset and primarily appraise
    the previous Marathon Oil operated 48/24-3 (1990) well, which tested c.
    45(o) API light sweet oil at c. 1,600 BOPD from Base Cretaceous sands. Using
    the latest technology, the 48/24-J well is planned to acquire a modern set
    of wire-line logs, together with an orientated conventional core through the
    primary objective. These new data will be important in understanding the
    reservoir architecture, inverting the 3D seismic volume and defining the
    resource base for this reservoir interval. In addition, it is planned to
    test the well using vacuum insulated tubing (VIT), which has proven to be
    key when dealing with high pour point crudes such as those seen in the
    original well. Data in overlying secondary objectives will also be acquired
    as these have tested at rates of c. 1,500 BOPD from two previous wells on
    the Barryroe structure. The objective will be to demonstrate commercial flow
    rates of 1,800 BOPD or better from this vertical well.

  * Providence now expects to commence drilling operations on the 48/24-J
    Barryroe appraisal well in mid-November 2011. Providence and its partners
    are awaiting the delivery of the GSF Arctic III rig, which is currently
    finishing a work programme for another operator in the North Sea. Pre-spud
    activities for the Barryroe well have already commenced, with tangible item
    mobilisation and other logistics activities progressing to plan.


Commenting on the news, Tony O'Reilly, Providence's CEO, said:

"This appraisal well is the first in Providence's multi-well, multi-year
drilling programme. In addition to being a very important confirmation well for
the future development of the Barryroe oilfield, this well also heralds the
renaissance of major drilling activities offshore Ireland. As the first well in
more than twenty years to be drilled on this accumulation, we are fortunate to
be able to avail of today's technology and market conditions to advance this
project and in doing so, endeavour to deliver the first commercial oil
development offshore Ireland. We look forward to updating shareholders on the
progress of this programme over the coming months."

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]
 Adrian Hargrave/Nick Wells


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




ABOUT PROVIDENCE
Providence Resources Plc is an Irish based oil and gas exploration company
listed on the AIM market in London and on Dublin's ESM market. Providence's
portfolio of production, appraisal and exploration assets includes licence
interests in Ireland (offshore) and the United Kingdom (onshore). In 2011,
Providence announced plans to invest with its partners upwards of $500 million
in the drilling of a number of exploration and development wells in 6 different
basins offshore Ireland. This multi-year programme represents the largest
drilling campaign ever carried out offshore Ireland.www.providenceresources.com.

ABOUT BARRYROE
The Barryroe licence lies directly below the Seven Heads Gas Field and has been
successfully tested at flow rates of between 1,300 and 1,600 BOPD, from three
exploration and 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. Providence holds
a 50% interest in the licence and operates on behalf of its partners San Leon
Energy Plc (30%) and Lansdowne Oil and Gas Plc (20%).A third party audit carried
out by RPS Energy for Lansdowne Oil & Gas plc indicated P50 and P10 STOIIP
estimates for Barryroe of 373 MMBO and 893 MMBO, respectively. The corresponding
2C and 3C Barryroe technically recoverable contingent resources are 59 MMBO and
144 MMBO, respectively. Providence entered into a MOA with Shell Trading and
Marketing to agree an oil off-take agreement for future Barryroe oil production.

ANNOUNCEMENT
This announcement has been reviewed by John O'Sullivan, Technical Director,
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 20 years and is a fellow of the Geological
Society of London and member of The Petroleum Exploration Society of Great
Britain. Definitions in this press release are consistent with SPE guidelines.

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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