Providence Resources P.l.c. End of Year Trading Statement 2007

"2007 has been an extremely positive year for Providence. Not least in Ireland where the discovery of oil at Hook Head, the continuing work on our west of Ireland prospects at Dunquin and Goban Spur and the ongoing farm out process at our Spanish Point Project, has confirmed our strategy and real commitment to the region.

 

"Diversification continues to be key to our business and the acquisition of the majority stake in the Singleton oilfield (taking Providence's stake to 99.125%) plus the discovery and bringing online of 2 new gas wells at High Island, Gulf of Mexico, has substantially increased cash flow for the Company, as well as moving us closer to our stated objective of 2,000 BOEPD.

 

"This year, we have also consolidated our relationships with our existing partners ExxonMobil, Sosina, Forestgate, Atlantic Petroleum, CMI and Dyas, as well as build relationships with new partners, such as Chevron and Vitol on the AJE Project. In addition, recently, we announced that we had secured a US $250 million Revolving Credit Facility with Macquarie Bank, which will allow us to capitalise on these relationships and progress a number of production and development opportunities.

 

"Looking towards 2008, Providence is very well placed to enhance all three areas of its' portfolio of production, appraisal and high-value exploration. Increased production has provided important cash flow with which to unlock the potential of the larger assets. Based on our current plans for 2008 (and subject to the availability of rigs), we intend to drill a number of wells next year across our whole portfolio in Ireland, the United Kingdom, the United States (Gulf of Mexico) and Nigeria. We look forward to outlining further details in the coming months.

 

"Going into 2008 with a clear strategy, an enhanced asset portfolio, and a solid financial base, I am confident that Providence represents a strong investment proposition for shareholders".

Some statements in this announcement are forward-looking. They represent our expectations for our business, and involve risks and uncertainties. We have based these forward-looking statements on our current expectations and projections about future events. We believe that our expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which are in some cases beyond our control, our actual results or performance, may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements speak only as of the date of this document and no obligation is undertaken, save as required by law or by the Listing Rules of the Irish Stock Exchange and/or the UK Listing Authority to reflect new information, future events or otherwise.

Tony O'Reilly Jnr., Chief Executive

 

Rory Godson/ Elizabeth Rous

 

Pauline McAlester/ Robert Marshall

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 it 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 (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