Preliminary Results

Providence Resources PLC
16 May 2005


                

            Providence Resources Plc ('Providence' or 'the Company')
                                  Preliminary Results
                          for the year ended 31 December 2004


   Highlights

   •Strong financial results & strengthened balance sheet

   •Turnover up 39% to €1.05 million

   •Profit after tax €165,000 (2003: loss after tax €580,000)

   •Nigerian oil field drilling programme on schedule this summer

   •New licences awarded offshore Ireland and UK

   •Providence to apply for AIM admission in London

   •Tony O'Reilly Jnr appointed Deputy Chairman

The Company is pleased to announce preliminary financial results for the year
ended 31 December 2004. In the period under review, the Company undertook a
major drilling programme offshore Ireland; entered into an international
consortium on the AJE field offshore Nigeria; secured substantial offshore
licence interests in Ireland and the UK; and continued extensive exploration
work on a number of its existing Irish prospects.

Dr Brian Hillery, Chairman, said:

    'This has been a transformative year for Providence, We had a strong
    financial performance but, more importantly, Providence's opportunity in the
    Aje field offshore Nigeria, licence awards in the Porcupine Basin and
    progress in St. George's Channel made 2004 a successful year for the
    business. Already in 2005, we have had a number of positive developments,
    and we can look to the future with optimism.

    'We are delighted to announce that Tony O'Reilly Jnr, a director since we
    first floated in 1997, has been appointed Deputy Chairman. His family are
    our largest shareholders and Tony has a proven track record in mineral
    exploration and exploitation since 1991.'



Tony O'Reilly Jnr, Deputy Chairman, said:

    'While Providence is a long-established business, it is only beginning to
    reach its potential: 2004 presented particularly exciting opportunities
    which continue to further strengthen the Company during the current year. We
    plan to join the London Stock Exchange's AlM market because it is Europe's
    key stock exchange for oil and gas companies and will introduce us to a much
    wider pool of potential investors. We will retain our Irish quote where we
    have successfully raised investment capital over the past eight years. I am
    delighted to be appointed Deputy Chairman and look forward to helping drive
    the business forward at this important stage in its evolution'.

Ends:             Monday, 16th May 2005.

Contacts

Providence                      Tel: [phone]
Dr. Brian Hillery               Chairman
Tony O'Reilly Jnr               Deputy Chairman
Tony Odone                      Chief Operating Officer
Stephen Carroll                 Finance Director
John O'Sullivan                 Exploration Manager

Powerscourt                     Tel: [phone]
Rory Godson                     Mob: [phone]
Victoria Brough                 Mob: [phone]

Murray Consultants
Pauline McAlester               Tel: [phone]

Financial
Turnover for the year ended 31 December, 2004 was €1,051,000 (2004 €757,000).

All of this came from the Company's interest in the producing UK onshore
Singleton oil field. Revenue benefited from the higher oil price in 2004 with
the average oil price per barrel at US$38 compared to US$29 in 2003. The Company
is currently looking at proposals to increase production from Singleton in 2005.

An operating profit of €95,000 was recorded in 2004 (2003: operating loss
€163,000). The profit on ordinary activities after taxation was €165,000 (2003:
loss of €580,000), principally due to increased net interest income.

Shareholders' funds increased to €17,235,000 in 2004 (2003: €4,617,000) through
the raising of equity finance. Cash at bank at 31 December 2004, was €7,284,000
(2003: €181,000).

AIM Admission
Whilst Providence has been satisfied with its quotation since 1997 on the Irish
Stock Exchange's ESM (Exploration Securities Market), the Board has decided
that, with its expanding portfolio internationally and in Ireland, it would be
beneficial for the Company to apply for admission to AIM in London because that
market offers the widest, deepest pool of potential investors for Providence.
It is envisaged that an announcement regarding the Company's intentions for AIM
admission will be made in due course. The Company will retain its Irish Stock
Exchange quotation, which recently transferred to the Irish Enterprise Exchange
(IEX) from the ESM.

Directorate Changes
Tony O'Reilly Jnr, a Founding Director of Providence in 1997, and a former Chief
Executive and Chairman of its predecessor company (ARCON) since 1991, has been
appointed Deputy Chairman. Mr. O'Reilly is Chief Executive of Josiah Wedgwood &
Sons Ltd and a director of Waterford Wedgwood plc and a number of other
companies.

The Company announced on May 6, the appointment of Mr. James S.D. McCarthy as
Non-Executive Director. Currently, Managing Director of Corporate Finance
Ireland Limited, Mr McCarthy has an MBA from University of Pittsburgh and holds
a number of directorships. His company has acted as adviser to two companies
which recently joined AIM.
.
Operational Review
Nigeria
Providence has entered a participation agreement with a strong international
consortium including Lundin Petroleum, Challenger Minerals, Palace Exploration
Company, Howard Energy, Syntroleum Corporation and Yinka Folawiyo Petroleum
whereby Providence is entitled to 6.328% of net revenues from any developments
within OML 113, offshore Nigeria, which includes the Aje field. The participants
have also entered into an Area of Mutual Interest agreement covering areas
adjoining OML 113.

There are already two previous wells drilled on the Aje field, both of which
tested and flowed hydrocarbons.

The Aje field is thought to contain potential un-risked recoverable reserves of
200 million barrels of crude oil plus 1.5 trillion standard cubic feet of
natural gas with potential for a further 150 million barrels of condensate oil
and natural gas liquids. OML 113 also contains a number of further significant
undrilled exploration leads and prospects in addition to Aje.
An appraisal well is scheduled to be drilled on Aje within the next four months.


New Licence Interests
In December 2004, Providence was awarded two significant frontier exploration
licences in the Porcupine Basin (West Coast of Ireland).
The first licence, covering 5 blocks, includes the Dunquin North and Dunquin
South prospects (the Dunquin ridge is one of the largest undrilled exploration
structures offshore northwest Europe). The second licence encompasses the
Spanish Point and Burren discoveries, both of which have flow tested discovery
wells with proven hydrocarbons.

The Company is currently commencing discussions with a number of major
international partners regarding the most effective exploitation of the
opportunities offered by these significant prospects.
In October 2004 Providence secured two additional UK North Sea prospecting
licences, in Quad 210 and in Block 9/9d.
St. George's Channel

Work on the St. George's Channel area (Licensing Option 03/7) has confirmed two
main prospects, Dionysus and Pegasus, which are thought to contain potentially
recoverable volumes of 500 bscf of gas and 310 bscf of gas respectively. In
addition, Licensing Option 03/7 is adjacent to the existing Dragon gas field,
which straddles the international median line where Marathon is expected to
drill an appraisal well during the second half of 2005. Providence's evaluations
indicate that potentially circa 20 bscf of gas recoverable extends into
Providence's licenced area.

Central Area, Celtic Sea
Work has progressed on Licensing Option 03/8 during the year, primarily on the
prospects at Hook Head (Block 50/11) and Glandore (Blocks 50/8&9). Re-analysis
of the Hook Head prospect using modern petrophysical techniques indicate that
the reservoirs could potentially contain up to 300 mmbbls oil-in-place, or 300
bscf gas-in-place, if the hydrocarbon type is gas. Analysis and mapping of the
Glandore prospect, a large 4-way dip closed anticline, is currently continuing.

Blackrock, Celtic Sea

During 2004, the Company drilled the 49/26-1A well on the Blackrock structure
offshore Ireland. Whilst the initial well results were inconclusive, subsequent
analysis suggests that there remains a significant volume of untested
hydrocarbon potential within the Blackrock structure. An electromagnetic survey
to identify the optimum location for the next exploration well is being
evaluated which would be the next envisaged phase for Blackrock.

Singleton
The Singleton oil field (onshore UK) continued to produce successfully at an
average of 500 BOPD. New wells are being evaluated and considered for drilling
with a view to increasing production by 50% - 100%. Providence has a 20%
interest in Singleton.

Outlook
The Company is expecting a period of exceptionally high activity in 2005, the
main feature of which will be the drilling in the Aje field offshore Nigeria.
Additionally, work on the St. George's Channel prospects (Dionysus and Pegasus),
the Celtic Sea and the Porcupine Basin (Dunquin North and South; Spanish Point
and Burren) and the UK offshore interests will be progressed as will discussions
with potential partners.
Notes to Editors

 1. •Providence Resources Plc is a revenue-generating, Irish quoted, hydrocarbon
    exploration and development company with international, Irish and UK
    operations
    .
 2. •The Company's most significant interests are the Aje Field in Nigeria,
    Blackrock, St. George's Channel and Porcupine in Ireland and Singleton in
    the UK.
 3. •Sir Anthony O'Reilly is a 45% shareholder in Providence and the management
    includes Tony Odone, Chief Operating Officer; John O'Sullivan, Exploration
    Manager and Stephen Carroll, Finance Director.
 4. •Further information on the Company can be found at
    www.providenceresources.com.

Ends





Providence Resources P.l.c.
Consolidated Profit and Loss Account           Unaudited       Audited
For the year ended 31 December 2004
                                             31 December   31 December
                                                    2004          2003
                                                    €000          €000
Turnover                                           1,051           757
Cost of sales                                       (316)         (412)
                                                --------     ---------
Gross Profit                                         735           345
Operating expenses                                  (640)         (508)
                                                --------     ---------
Operating Profit/(Loss)                               95          (163)
Interest receivable and similar income               216             2
Interest payable and similar charges                (146)         (419)
                                               ---------      --------
Profit/(Loss) on Ordinary Activities before
Taxation                                             165          (580)
Tax on ordinary activities                             -             -
                                                --------     ---------
Retained Profit/(Loss) for the Year                  165          (580)
                                                   =====         =====
Profit and Loss Account
At beginning of year                             (24,718)      (24,138)
Retained profit/(loss) for the year                  165          (580)
                                               ---------     ---------
Profit and Loss Account, end of year             (24,553)      (24,718)
                                                  ======         =====
Earnings per Ordinary Share (cents)
- Basic and Fully Diluted                          0.01c      (0.055c)
                                                  ======         =====

Providence Resources P.l.c.
Consolidated Balance Sheet as at 31 December 2004
                                               Unaudited       Audited
                                             31 December   31 December
                                                    2004          2003
                                                    €000          €000
Fixed Assets
Oil and gas interests                             12,004         7,175
Tangible assets                                       52            20
                                               ---------       -------
                                                  12,056         7,195
                                               ---------       -------
Current Assets
Debtors                                              369           183
Cash at bank and in hand                           7,284           181
                                              ----------    ----------
                                                   7,653           364
Creditors: Amounts falling due within one           (897)       (1,403)
year
                                              ----------      --------
Net Current Assets/(Liabilities)                   6,756        (1,039)
                                              ----------       -------
Total Assets Less Current Liabilities             18,812         6,156
Creditors: Amount falling due after more
than one                                              (6)          (13)
year
Provision for Liabilities and Charges             (1,571)       (1,526)
                                               ---------       -------
Net Assets                                        17,235         4,617
                                                   =====          ====
Capital and Reserves
Called up share capital                           13,690        12,751
Share premium                                     26,822         5,720
Capital conversion reserve                           623           623
Convertible capital bonds                              -         9,595
Profit and loss account                          (24,553)      (24,718)
Foreign currency translation reserve                 653           646
                                               ---------     ---------
Shareholders' Funds                               17,235         4,617
                                                   =====        ======



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