Providence Resources Plc has exchanged contracts with Star Energy Group Plc (“Star”) for the purchase of Star’s 79.125% interest in the Singleton oil field, onshore UK.

As a result, Providence's beneficial interest in the Singleton Oil Field increases from 20% to 99.125%, with a corresponding increase in daily production from approx. 120 BOEPD* to 600 BOEPD*.

Because of the Company's previously announced production in the Gulf of Mexico, its production should increase six fold this year to 720 BOEPD*.

This announcement follows last week's news confirming a significant oil discovery offshore Ireland. Under the terms of the Singleton deal, Providence will derive the additional proportional revenue with effect from October 1st, 2007. The remaining 0.875% of the field is owned by Noble Resources.

Commenting on the announcement, Mr Tony O'Reilly Jnr., Chief Executive said, "We are delighted to conclude the exchange of contracts for the acquisition of Star's interest in the Singleton Oil Field, especially coming so soon after our excellent news from Hook Head, offshore Ireland. Singleton is a significant deal for Providence as this transaction, when combined with our recently announced High Island A268 production in the Gulf of Mexico, takes our projected annualised daily production to over 720 BOEPD*.

"This year, we have gone from a Company with relatively marginal production to one with a production profile that can generate meaningful cash flow. Further optimisation opportunities at Singleton, including monetising some of the associated gas production via CNG production, will also yield potential opportunities for increased production volumes in tandem with the deployment of enhanced oil recovery techniques. Further, with a STOIIP figure in excess of 70MMBO, and with only circa 4.8% recovered**, your Company will now look to assess the considerable additional exploration and development potential in the field."

including associated gas production *Cumulative recovery figure is as of 31/12/06