Celtic Sea Operational Update - Commencement of...

CELTIC SEA OPERATIONAL UPDATE

                 COMMENCEMENT OF DRILLING OPERATIONS
                             AT DUNMORE


Providence Resources P.l.c., the AIM (London) and IEX (Dublin) listed
oil & gas exploration and production company, today announces that it
has commenced appraisal drilling operations on its Dunmore oil
discovery in Standard Exploration Licence 2/07 in the North Celtic
Sea Basin, offshore southern Ireland.

Using the Transocean semi submersible GSF Arctic II rig, drilling
operations on the Dunmore appraisal well (50/6-4) commenced at
07:45am on Friday, September 5th.  It is anticipated that the
drilling programme will take up to 40 days, which includes a
provision for a comprehensive wireline logging and testing programme.

Tony O'Reilly, Chief Executive of Providence said:

"We are extremely pleased to announce the commencement of drilling
operations at Dunmore. This appraisal well is located up-dip from the
original tested Jurassic discovery well and is designed to prove
additional volumes in the Dunmore accumulation".

Contacts:

Providence Resources Plc                        Tel: [phone]
Tony O'Reilly, Chief Executive

Powerscourt                                                Tel: +44
207 250 1446
Rory Godson/Elizabeth Rous

Murray Consultants                                     Tel: +353 1
498 0300
Pauline McAlester

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. 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 United Kingdom (onshore and
offshore), the United States (onshore and 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
at www.providenceresources.com.

Celtic Sea Standard Exploration Licence 2/07

Standard Exploration Licence 2/07 refers to part blocks 49/22, 49/23,
48/29, 48/30, 49/26, 49/27, 49/28, 49/8, 49/9, 49/13, 49/14, 50/6,
50/7 & 50/11 in the North Celtic Sea Basin, offshore southern
Ireland. The current Standard Exploration Licence 2/07 partners and
their respective percentages are Providence Resources Plc (Operator)
53.111, Challenger Minerals (Celtic Sea) Limited 26.743%,   Atlantic
Petroleum (Ireland) Limited 13.430% and Sosina Exploration Limited
6.715%.

About Dunmore

The Dunmore oil discovery is located in c. 70 metre water depth being
c. 40 km offshore Wexford and is situated in
Standard Exploration Licence 2/07 in the North Celtic Sea Basin. The
50/6-1 discovery well was drilled in 1986 by Gulf
Oil (now part of Chevron), and tested a c. 60' gross interval at a
rate of c. 2,100 BOPD from sands of Upper Jurassic
age at a depth of c. 5,000' TVDSS. The oil is a light, sweet, 44o API
crude and is interpreted to be trapped in a
downthrown terrace structure. Mapping of reprocessed 2D seismic data
now suggest that this structure rises to the
east of the 50/6-1 well location and that an appraisal well would be
optimally drilled c. 500' up-dip from the 50/6-1 well.
On the assumption that a common contact exists between the 50/6-1
discovery well and this crestal area, a number of
sands which were water bearing in the original well should be oil
bearing at the crestal area thereby significantly
increasing the potential flow rates.

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