ULYSSES Gas Storage Project Update

10 January 2011
Embargo 7am

                          ULYSSES GAS STORAGE PROJECT
                                     UPDATE

  * Initial concept study completed by AMEC
      * Construction of gas storage facility economically and technically
        feasible
      * Gas storage capacity scenarios of up to c. 20 BCF with export rates of
        up to c. 1 BCFD


  * Expressions of interest received from potential third party gas storage
    users


Providence Resources P.l.c. , ('Providence'), through its wholly owned
subsidiary EIRGAS Limited ('EIRGAS'), is pleased to announce that it has
completed the first phase of the AMEC conceptual development study for the
ULYSSES salt cavern gas storage project in the Kish Bank Basin, offshore eastern
Ireland.

The ULYSSES Project, which commenced in 2008, assessed the natural gas storage
and carbon sequestration potential of the Kish Bank Basin, offshore Dublin. The
initial phase of this new study, carried out by AMEC plc, which included
planning, capacity modeling, infrastructural integration and gas sourcing has
confirmed that the construction of an offshore natural gas salt cavern storage
facility at the ULYSSES location is both economically and technically feasible.
A number of scenarios have been developed which have an associated range in
capacity, off-take export rates and capital expenditure. Detailed technical data
relating to the subsurface geology, which will be acquired through the drilling
of the Dalkey Island exploration prospect, will also assist with the advancement
of this project.

Speaking today, John O'Sullivan, Technical Director of Providence, said:

"The initial results from the AMEC ULYSSES study are very encouraging as they
provide a range of potential project sizes and development concepts which could
be built to meet market requirements. In outline, if developed, ULYSSES could
deliver c. 50% of Ireland's storage capacity as set out in EU directives through
one dedicated offshore facility whilst also providing security of supply through
the cold winter months. Having now established both the technical and economic
potential of ULYSSES, we will now move to refine the future development plans,
including the all important sub-surface technical parameters, and we will
continue to advance discussions with potential users and partners."

Contacts:

 Providence Resources P.l.c.     Tel: [phone]
 Tony O'Reilly/John O'Sullivan


 Powerscourt                     Tel: [phone]
 Rob Greening/Lisa Kavanagh


 Murray Consultants              Tel: [phone]
 Pauline McAlester


 Cenkos Securities Plc           Tel: [phone]
 Joe Nally/ Nick Wells


 Davy                            Tel: + 353 (0)1 679 6363
 Stephen Barry




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 atwww.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 the ULYSSES Project
The Undersea Large-scale Saline Sequestration and Enhanced Storage (or ULYSSES)
Project was designed to assess the potential use of Triassic aged saline
sandstone reservoir sequences as possible sites for natural gas and carbon
sequestration storage. 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.

Announcement
In accordance with the AIM Rules - Guidance for Mining and Oil & Gas Companies,
the information contained in this announcement has been reviewed and approved by
John O'Sullivan, Technical Director 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.

Terms used in this Announcement
BCF Billion Cubic Feet of Gas
BCFDBillion Cubic Feet of Gas per Day






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Source: Providence Resources plc via Thomson Reuters ONE

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