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Providence Resources plc : Providence Resources plc : End of Year Trading Statement 2012

  Providence Resources plc : Providence Resources plc : End of Year Trading
                                Statement 2012

Embargo 7:00am
20^th December 2012

                         PROVIDENCE RESOURCES P.l.c.

                      END OF YEAR TRADING STATEMENT 2012

HIGHLIGHTS

2012 was a landmark year for Providence Resources P.l.c. ("Providence" or the
"Company"), the Irish oil and gas exploration, appraisal and development
company, whose shares are listed in London (AIM) and Dublin (IEX). During
2012, operations on the first well in the Company's multi-well, multi-year
drilling programme offshore Ireland were successfully completed. This drilling
programme, which represents the largest and most comprehensive concerted
drilling operations offshore Ireland, represents an investment of up to $500
million by Providence and its partners in a number of exploration and
development/appraisal wells in six different basins offshore Ireland.

The first of six wells to be drilled in this programme was successfully
drilled and subsequently tested in March 2012 at the Barryroe oil field in the
Celtic Sea Basin. Plans are in place for three further wells to be drilled in
2013 at Spanish Point and Dunquin, with the potential to open up Ireland's
Atlantic margin, and in the Kish Bank Basin. A further two wells are planned
to be drilled in 2014 in the Rathlin Basin and at Dragon in the St. George's
Channel Basin.

CURRENT DRILLING PROGRAMME

CELTIC SEA BASIN - BARRYROE OIL FIELD

  *Successful drilling and testing of 48/24-10z well with flow rates of 3,514
    BOPD and 2.93 MMSCFGD (c. 4,000 BOEPD), which materially exceeded
    pre-drill expectations (March 2012)

  *Additional gas interval also successfully tested (March 2012)

  *Updated Barryroe resource and recovery assessment (based on detailed
    post-well analysis, updated mapping, and new 3D data) confirmed a large
    total P50 oil resource potential at Barryroe of 1,821 MMBO (P10 resource
    of 2,777 MMBO) (July 2012)

  *Static and dynamic Basal Wealden reservoir analysis modelled recovery
    factors ranging between 17-41% utilising horizontal production and water
    injection wells; a 31% recovery factor was used for development planning
    (October 2012)

                P50      P50
                OIP      REC
               MMBO  RF  MMBO
Middle Wealden  287  16%  46
Basal Wealden   756  31% 234
               1,043 27% 280
Not included
Purbeckian      362       NA
Lower Wealden   416       NA
                778

  *Development concept engineering contract awarded to Procyon Oil & Gas
    Limited (June 2012)

  *Two year Licensing Option granted over adjacent c. 500 sq km area north
    and west of Barryroe (August 2012)

  *CPR to be published in late Q1 2013

SOUTH PORCUPINE BASIN - DUNQUIN PROSPECT

  *Letter of intent signed for a rig (September 2012)

  *Q1 2013 - Exploration well to be drilled

PORCUPINE BASIN - SPANISH POINT GAS CONDENSATE FIELD

  *Chrysaor assumed role of Operator (July 2012)

  *Pre-drill site survey completed (August 2012)

  *Q2/Q3 2013 - Appraisal well to be drilled

KISH BANK BASIN

  *Receipt of Foreshore Licence (October 2012)

  *Q1 2013 - Site survey to be carried out

  *H1 2013 - Exploration well to be drilled

RATHLIN BASIN

  *Awarded Rathlin Basin Licence P1885 (offshore) (End December 2011 but
    announced January 2012)

  *Airborne Full Tensor Gradiometry survey completed; Initial interpretation
    confirms five significant anomalies (September 2012)

  *Q1 2014 - Exploration well to be drilled

ST.GEORGE'S CHANNEL BASIN - DRAGON GAS FIELD

  *Awarded UK Licence P1930 over UK seaward block 103/1 (offer announced
    January 2012; awarded October 2012)

  *Q1 2014 - Appraisal well to be drilled

OTHER FUTURE DRILLING OPPORTUNITIES

SOUTH PORCUPINE BASIN - DROMBEG PROSPECT

  *Completion of seismic inversion studies by Ikon Science (August 2012)

  *Announced significant resource potential (P50 872 MMBO REC), based on an
    oil in place volume of 2,970 BBO in-place (November 2012)

GOBAN SPUR BASIN - NEWGRANGE PROSPECT

  *Repsol assumed role of Operator (March 2012)

  *Technical evaluation of future hydrocarbon potential currently ongoing

SLYNE BASIN - KYLEMORE AND SHANNON PROSPECTS

  *Updated mapping of Kylemore; re-evaluation of Shannon resource potential
    carried out; Gas potential of 228 BCF identified (April 2012)

All planned drilling, site and seismic activities are based on relevant permit
requirements and appropriate equipment availability / procurement.

KEY FINANCIAL ACTIVITIES

SHARE PLACING

  *Placing of 13.149 million new ordinary shares at £4.80 per share to raise
    gross proceeds of US$100 million (£63 million); the shares were placed at
    a premium to the market price and the net proceeds were used to fund the
    increased equity participation in Barryroe (from 50% to 80%), to complete
    the repayment of the Convertible Bond and to contribute to costs of the
    multi-well drilling programme (April 2012)

CONVERTIBLE BOND REPAYMENT

  *Second and final tranche of proceeds from sale of AJE Field (offshore
    Nigeria) received (US$6 million, following receipt of US$10 million in
    December 2011) and used to part-pay down Convertible Bond (April 2012)

  *Repayment of final balance on Convertible Bond of €29.7 million funded
    from the proceeds of the April share placing. During 2012, total bond
    repayments of €34.3 million were made, repaying the Convertible Bond in
    full prior to the scheduled maturity (July 2012)

SALE OF ONSHORE UK ASSETS

  *Agreement to sell UK onshore assets (Singleton oil field, Baxter's Copse
    development project and Burton Down exploration prospect) to IGas Energy
    Plc for a consideration of $66 million (September 2012)

  *Sale proceeds will be applied to extinguish all corporate debt (c. $44
    million), with surplus funds to be invested in drilling activities
    offshore Ireland

  *Closing is expected to occur in early Q1 2013

Commenting on activity during 2012 and the future drilling plans offshore
Ireland for 2013 and beyond, Tony O'Reilly, Chief Executive of Providence
Resources P.l.c., said:

"2012 was a transformational year for Providence, with the most notable event
being the successful drilling and testing of the Barryroe oil field in the
Celtic Sea Basin. The success at Barryroe, further enhanced by detailed
post-well analysis, has had an extremely positive impact on both the asset
portfolio and the financial well-being of the Company. It has also had a
profound effect on the perception of Ireland in the eyes of the international
E&P sector.

"For many years, Providence has been strident in its views on the material
hydrocarbon prospectivity of offshore Ireland. Barryroe validates this with
results that exceeded all expectations, and we now look forward to advancing
this large oil project towards development with our partner, Lansdowne,
together with potential future farminee(s). Barryroe represents a world-class
oil resource and its importance should not be underestimated, not just in
terms of the future plans for Providence, but also for the renaissance of the
wider Irish offshore sector.

"However, Providence is much more than just Barryroe and it is only the first
well of our multi-faceted drilling programme, which spans six basins offshore
Ireland. Accordingly, as we move into 2013, we have three major high impact
wells to be drilled at Dunquin in the southern Porcupine Basin, one appraisal
well at Spanish Point in the northern Porcupine Basin and an exploration well
in the Kish Bank Basin. These wells are the only wells planned to be drilled
offshore Ireland in 2013 and two of them, Spanish Point and Dunquin, have the
potential to open up Ireland's largely undrilled Atlantic Margin. Throughout
2013, we will also be advancing the pre-drilling activities for the planned Q1
2014 drilling programme in the Rathlin Basin and at the Dragon gas field in
the St George's Channel Basin.

"We will also continue to work up new exploration and appraisal opportunities
for future drilling such as Drombeg, which has already generated significant
industry interest, and Newgrange we will continue to look to bring in further
industry partners to advance the portfolio. Importantly, all of the wells in
our six basin programme are what we term "pathfinder wells": in other words,
by proving up one petroleum play, we have the potential to prove up many
prospects in each respective basin.

"In terms of financing, we were very pleased to be able to strengthen the
Company's balance sheet during 2012 by raising additional equity capital at a
premium to the market price, as well as divesting assets, which allowed us to
redeem the Convertible Bond in full. The final stage of this restructuring
will be completed in Q1 2013 with the closing of the sale of our UK onshore
assets, a transaction which will allow us to retire all outstanding corporate
debt.

"Providence has been the leading Irish-focused E&P company for many years and
so it is exceptionally pleasing to have been rewarded with such success at
Barryroe. There are many other exciting opportunities ahead and so we look
forward to building on this positive momentum by embracing the advances in
technology, infrastructure, the fiscal regime and higher oil prices to unlock
Ireland's substantial hydrocarbon potential offshore Ireland.

"2012 was a very exciting year for Providence's shareholders, and we firmly
believe that 2013 promises to deliver even more".

         Tony O'Reilly
         Chief Executive

         20^th December 2012
Contacts:
Providence Resources P.l.c.         Tel: +353 1 219 4074
Tony O'Reilly, Chief Executive
John O'Sullivan, Technical Director
Powerscourt                         Tel: +44 207 250 1446
Lisa Kavanagh/Rob Greening
Murray Consultants                  Tel: +353 1 498 0300
Pauline McAlester
Cenkos Securities Plc               Tel: +44 207 397 8900
Adrian Hargraves/Nick Wells
J&E Davy                            Tel: + 353 1 679 6363
Eugenee Mulhern
Liberum                             Tel: +44 203 100 2000
Clayton Bush

TERMS USED IN THIS ANNOUNCEMENT:
BBO - Billion Barrels of Oil
MMBO - Million Barrels of Oil
BCF - Billion Cubic Feet of Gas

ABOUT PROVIDENCE
Providence Resources Plc is an Irish based oil & gas exploration, appraisal
and development company with a portfolio of appraisal and exploration assets
offshore Ireland and the U.K. The Company is currently leading a circa $500
million multi-year drilling programme on a number of exploration/development
wells over 6 different basins offshore Ireland, representing the largest
drilling campaign ever carried out offshore Ireland
www.providenceresources.com.

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

                                LIST OF ASSETS

Licence  Asset            Operator   Partners                % Type
CELTIC SEA BASIN
SEL 1/11 Barryroe         Providence Landowne           80.00% Oil discovery
SEL 2/07 Hook Head        Providence Atlantic; Sosina   72.50% Oil and gas
                                                               discovery
SEL 2/07 Dunmore          Providence Atlantic; Sosina   72.50% Oil discovery
SEL 2/07 Helvick          Providence Atlantic; Sosina;  62.50% Oil and gas
                                     Lansdowne                 discovery
SEL 2/07 Nemo             Providence Atlantic; Sosina;  54.40% Oil and gas
                                     Nautical                  discovery
KISH BANK BASIN
SEL 2/11 Kish Bank        Providence Petronas           50.00% Oil and gas
                                                               exploration
SEL 2/11 ULYSSES          EIRGAS                       100.00% Gas storage
                                                               evaluation
SLYNE BASIN
LO 11/12 Kylemore         Providence First Oil Expro    66.66% Gas exploration
LO 11/12 Shannon          Providence First Oil Expro    66.66% Gas exploration
PORCUPINE BASIN
FEL 2/04 Spanish Point    Providence Chrysaor; Sosina   32.00% Oil and gas
                                                               discovery
FEL 2/04 Burren           Providence Chrysaor; Sosina   32.00% Oil discovery
FEL 2/04 Wilde / Beehan   Providence Chrysaor; Sosina   32.00% Oil discovery
FEL 4/08 Cama (North &    Providence Chrysaor; Sosina   32.00% Oil and gas
         South)                                                exploration
FEL 4/08 Rusheen (North & Providence Chrysaor; Sosina   32.00% Oil and gas
         South)                                                exploration
FEL 4/08 Costelloe (Main, Providence Chrysaor; Sosina   32.00% Oil and gas
         North & South                                         exploration
FEL 4/08 Shaw             Providence Chrysaor; Sosina   32.00% Oil and gas
                                                               exploration
FEL 4/08 Synge            Providence Chrysaor; Sosina   32.00% Oil and gas
                                                               exploration
LO 11/2  Spanish Point    Providence Chrysaor; Sosina   32.00% Oil and gas
         South                                                 exploration
SOUTH PORCUPINE BASIN
FEL 3/04 Dunquin          ExxonMobil Eni; Repsol;       16.00% Oil and gas
                                     Sosina                    exploration
FEL 1/99 Cuchulain        ENI        ExxonMobil;         3.20% Oil and gas
                                     Sosina                    exploration
LO 11/9  Drombeg          Providence Sosina             80.00% Oil and gas
                                                               exploration
GOBAN SPUR BASIN
LO 11/11 Newgrange        Repsol     Repsol; Sosina     40.00% Oil and gas
                                                               exploration
ST. GEORGE'S CHANNEL
BASIN
SEL 1/07 Pegasus          Providence                   100.00% Oil and gas
                                                               exploration
SEL 1/07 Orpheus          Providence                   100.00% Oil and gas
                                                               exploration
SEL 1/07 Dionysus         Providence                   100.00% Oil and gas
                                                               exploration
SEL 1/07 Dragon           Providence                   100.00% Gas discovery
PL 1930  Dragon           Providence                   100.00% Gas discovery
RATHLIN BASIN
PL 5/10  Rathlin          Providence                   100.00% Oil and gas
                                                               exploration
PL 1885  Rathlin          Providence                   100.00% Oil and gas
                                                               exploration
Excludes UK onshore assets being divested to IGas
Energy Plc
December 2012

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Source: Providence Resources plc via Thomson Reuters ONE
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