Providence to Launch Major Drilling Programme Offshore Ireland in 2011

Tony O’Reilly, Chief Executive of Providence Resources P.l.c., commenting on activity during 2010 and the future plans for 2011, said:

“2010 has seen a huge amount of activity at Providence. We have assembled a balanced portfolio of drillable prospects while also ensuring that we have the appropriate partners for these specific assets. 2011 and beyond is all about drilling and we are expecting significant activity in our three operational areas of the United Kingdom, the Gulf of Mexico and, most importantly, offshore Ireland where we have multiple drilling targets. This not only represents the largest drilling programme in our history but it will also be the largest co-ordinated multi-basin drilling programme carried out offshore Ireland. Working with our partners, over the next two years, we plan to carry out a comprehensive drilling programme to test the hydrocarbon potential of some of the major basins offshore Ireland, consisting of both high impact exploration and appraisal/development wells.

“At the same time, we remain focussed on our production portfolio, and here we will see further investment at Singleton, as well as in the Gulf of Mexico. At Singleton, we are forecasting a doubling of production within the next two years. The cumulative impact of our investments at Singleton and in the Gulf of Mexico should see production levels increase by nearly 50% from current levels of 1,700 BOEPD to over 2,500 BOEPD by the end of 2011.

“On the development front, the announcement of the results from the Spanish Point 3D survey, and the associated development studies, was a major milestone which heralds this project as Ireland’s next major hydrocarbon development project. Equally important was the increase in equity at Barryroe, our assumption of operatorship and the planned fast tracking of the appraisal programme there. The whole Celtic Sea portfolio has materially changed over the past year in terms of new partners, agreed farm out deals and the forward programme of activity, and we expect this to continue in 2011.

“Within the exploration portfolio, the successful conclusion of the site survey over Dunquin was the last key step in the pre-drill activities, and we now await formal notification of a spud date from the operator, ExxonMobil. In 2010, we also had notable success in identifying and capturing large new exploration prospects offshore Ireland, including the Wilde prospect under Spanish Point; the Dalkey Island oil prospect, offshore Dublin; the Marlin gas prospect in the Celtic Sea, adjacent to the Kinsale Head gas field, and the Rathlin Island oil prospect, our first exploration licence in Northern Ireland.

“Providence enters 2011 with a clear strategy, strong partners, an increasing reserve base and a dynamic asset portfolio, which will be the subject of a comprehensive drilling programme. Combined with solid macro economic factors (commodity prices and exchange rates), existing cash resources, growing production cash flow and the ongoing support of our shareholders and bankers, we remain confident that Providence represents a compelling long term investment proposition for investors.”

Commencement of multi-year, 12-well drilling programme over 6 basins

Ireland:

o Exploration Targets

• Dalkey Island Oil Prospect
• Rathlin Island Oil Prospect
• Marlin Gas Prospect
• Orpheus Gas Prospect
• Pegasus Gas Prospect
• Dunquin Gas Prospect

Appraisal/Development

• Hook Head Oil Discovery
• Spanish Point Gas Condensate Discovery
• Barryroe Oil Discovery
• Burren Oil Discovery

o Pre-production

•  Helvick Oil Field
•  Dragon Gas Field

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Source:  Providence, December 23, 2010;