Providence Raises US $60 Million Via Oil Prepai...

Embargo: 7:00am
19 July 2011


                        PROVIDENCE RAISES US$ 60 MILLION
                           VIA OIL PREPAID SWAP WITH
                                 DEUTSCHE BANK

Providence Resources P.l.c., ("Providence") the Irish oil and gas exploration
and production company, whose shares are listed in London (AIM) and Dublin
(ESM), today announced that it has entered into a prepaid oil swap transaction
with Deutsche Bank A.G. to the value of US$ 60 million.

The six and a half year debt facility is secured by way of a first lien over the
company's interest in the Singleton oil field in West Sussex, UK.  Providence
intends to use the funds to repay its existing reserve base lending facility and
to facilitate the ongoing development plan for the Singleton property, where the
Company plans to materially increase production rates.

Providence Chief Executive Officer, Tony O'Reilly, said:

"We are extremely pleased to have entered into this new facility with Deutsche
Bank. This innovative facility allows us to avail of today's higher pricing
environment for the term of the facility. Importantly, it provides the
operational and financial flexibility that will allow us to focus on increasing
Singleton production rates."

Deutsche Bank's global head of oil sales and structuring, Brian Cumming, said:

"Our platform prides itself on its ability to offer unique financing solutions
for clients.  We were delighted to structure a prepaid swap with Providence that
not only allows them to capture very attractive commodity prices but also allows
them to better match the term of the debt to the increasing life of the
Singleton oil field."

The Deutsche Bank Global Commodity Group's depth of product expertise across
financial and physical commodity markets has allowed it to build a track record
of delivering innovative commodity linked structured solutions to its clients.
The accomplishments of the group have been recognized by numerous industry
awards over the years, more recently by IFR which named Deutsche Bank its
Commodity House of the year for 2010.


For further information, please call:

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


 Powerscourt                     Tel: [phone]
 Rob Greening


 Murray Consultants              Tel: [phone]
 Pauline McAlester


 Cenkos Securities Plc           Tel: [phone]
 Adrian Hargrave/Nick Wells


 J&E Davy                        Tel: + 353 (0)1 679 6363
 Stephen Barry/Eugenee Mulhern




ABOUT PROVIDENCE
Providence Resources Plc is an independent oil and gas exploration company
listed on the AIM market in London and on Dublin's ESM market. Providence's
active oil and gas portfolio includes interests in Ireland (offshore), the
United Kingdom (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. Providence recently
announced a multi-year, multi-well offshore drilling campaign to cover the six
basins in which the Company has licence interests offshore Ireland. Providence
and partners plan to invest upwards of $500 million in the drilling of 10
exploration and development wells, with first drilling planned to commence later
in 2011. This programme represents the largest drilling campaign ever carried
out offshore Ireland.

Prior to the Deutsche Bank facility announced today, the Group had a reserved
based facility with BNP Paribas in respect of US$80 million (originally US$100
million), secured on the Group's producing assets, bearing interest at LIBOR +
5% and maturing in September 2014. At 30 June, 2011 US$ 48.7 million was drawn
down under this facility, all of which has now been repaid from the proceeds of
the Deutsche Bnak pre-paid swap transaction.

www.providenceresources.com

ABOUT DEUTSCHE BANK
Deutsche Bank is a leading global investment bank with a substantial private
clients franchise. Its businesses are mutually reinforcing. A leader in Germany
and Europe, the bank is continuously growing in North America, Asia and key
emerging markets. With more than 100,000 employees in 73 countries, Deutsche
Bank offers unparalleled financial services throughout the world. The bank
competes to be the leading global provider of financial solutions, creating
lasting value for its clients, shareholders, people and the communities in which
it operates.

www.db.com

ABOUT THE OIL PREPAID SWAP TRANSACTION
An oil prepaid swap transaction involves the producer of oil, in this case
Providence, agreeing to sell forward a certain percent of its production over
the term of the transaction to a counter party,  in this case Deutsche Bank. The
price for the forward sales was agreed by both parties at the closing of the
transaction which mirrored the commodity price forward curve for Brent. Deutsche
Bank advanced the agreed amount to Providence as a prepayment for oil that will
be produced and delivered by Providence to Deutsche Bank to repay the prepayment
or the loan over the agreed period to December 2017.

ABOUT SINGLETON
The Singleton oil field is located 7 km north of Chichester in onshore licence
PL 240 in the Weald Basin, South of England. The field consists of two east west
trending elongate horst blocks divided by a narrow graben. The wells produce
from the Jurassic-aged Great Oolite formation, consisting predominantly of
oolitic grainstones deposited during transgressive/regressive episodes. Recent
studies (2008) suggested an original oil in-place resource of up to c.107 MMBO.
Since production commenced in 1989, the field has produced c. 3.7 MMBO, which
represents a recovery factor to date of c. 3.5%. Published data from similar
fields in the area suggest an ultimate recovery factor of up to c.10% should be
achievable. Current normalised field production is c. 850 BOEPD with the
produced oil (37o API gravity crude) being trucked to the Holybourne rail
terminal.

SPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007 has been used in
preparing this announcement






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Source: Providence Resources plc via Thomson Reuters ONE

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