Technical Update - Dragon Gas Discovery St. Geo...

7 October 2011
Embargo 7am


                              DRAGON GAS DISCOVERY
                              ST GEORGE'S CHANNEL


                                TECHNICAL UPDATE

  * THIRD PARTY SEISMIC STUDY  INDICATES SIGNIFICANT ADDITIONAL RESOURCE
    POTENTIAL
      * Seismically derived hydrocarbon anomaly suggests up to c. 300 BSCF GIIP

      * Increased resource potential primarily in Providence operated block
        51/1


  * PLANNING HAS COMMENCED FOR AN APPRAISAL WELL ON DRAGON TO BE DRILLED IN
    2012
      * Reprocessing of 3D seismic data together with rig procurement activities



Providence Resources P.l.c. ('Providence'), the AIM and ESM listed exploration
and production company, is pleased to announce that it has completed a seismic
inversion study over the Dragon gas discovery ('Dragon') in the St George's
Channel Basin, offshore south east Ireland. The Dragon structure is partly
situated in Standard Exploration Licence (SEL) 1/07 which lies in c. 100 metre
water depth and is located c. 40 km offshore Ireland. The Dragon structure
extends across the Ireland/UK median line into UK block 103/1 where the 103/1-1
discovery well was drilled by Marathon Oil in 1994. Providence operates SEL
1/07 (100%) and has applied for UK block 103/1as part of a recent UK Government
'out of round' process.

Previous work on Dragon has suggested in place resources of up to c. 100 BSCF
with a c. 25:75 split between Ireland and the UK. A recently completed Dragon
study, which was carried out by IKON Geoscience, involved the modeling of
historical well and seismic data using the latest available technology. This
study has determined that the presence of the Dragon gas bearing reservoir sands
may be directly detectable from the 3D seismic data. Revised mapping using these
inverted seismic data indicates that the Dragon gas accumulation may extend
further into Irish waters than had been previously been mapped, with a potential
resource base of up to c. 300 BSCF and a c. 75:25 resource split between Ireland
and the UK. Additional reprocessing of the 3D seismic data has now commenced as
part of the planning of an appraisal well to be drilled in 2012.

Speaking today, John O'Sullivan, Technical Director of Providence said:

'The recently completed IKON study has significantly increased the resource
potential of the tested gas bearing sands in the Dragon discovery. The results
are extremely positive, particularly from an Irish perspective, as they suggest
an areally more extensive gas bearing reservoir system extending much further
into Irish waters. Given these very encouraging results, additional reprocessing
of the Dragon 3D data and well planning have now commenced as a prelude to
finalizing the well location for appraisal drilling in 2012."

Contacts:

 Providence Resources Plc        Tel: [phone]
 John O'Sullivan


 Powerscourt                     Tel: [phone]
 Rob Greening/Lisa Kavanagh


 Murray Consultants              Tel: [phone]
 Pauline McAlester


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


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




EXPLANATORY NOTES

About Providence
Providence Resources Plc is an Irish based oil and gas exploration company
listed on the AIM market in London and on Dublin's ESM market. Providence's
portfolio of production, appraisal and exploration assets includes licence
interests in Ireland (offshore) and the United Kingdom (onshore). In 2011,
Providence announced plans to invest with its partners upwards of $500 million
in the drilling of a number of exploration and development wells in the 6 basins
in which it has licences interests offshore Ireland. This multi-year programme
represents the largest drilling campaign ever carried out offshore
Ireland.www.providenceresources.com.

About The Dragon Discovery
The Dragon gas discovery was made by Marathon Oil UK in 1994 with the drilling
of the 103/1-1 well in UK waters offshore SW Wales. Oil and gas were found in
Upper Jurassic Callovian and Oxfordian sands and tested at c. 20 MMSCFD and 120
BOPD. Subsequent drilling and 3D seismic data have suggested that the field
straddles the Irish-UK median line with a c. 25:75 split respectively. Previous
most likely deterministic estimates had indicated an in place resource level of
c. 100 BSCF. Scoping development options currently under consideration include
subsea tiebacks to either SE Ireland or to the LNG plants in Milford Haven SW
Wales.

About IKON Geoscience
Ikon Science is a global geoscience technology company, recognized for industry
leadership in predicting reservoir properties, pressures and fluids, through the
power of integrating rock physics.  Ikon Science's RokDoc® software platform and
related Quantitative Interpretation services are used globally in over 100 Oil,
Gas, Energy and Service throughout the world. Ikon Science, founded in 2001,
employs over 100 people and has offices in London, Durham, Edinburgh, Lagos,
Houston, Boulder, Kuala Lumpur and Perth, Western Australia. The company is
privately owned and investors include Fleming Family & Partners and Tullow Oil
Plc.  www.ikonscience.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







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Source: Providence Resources plc via Thomson Reuters ONE

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