Providence Resources P.l.c has made a successful oil and gas discovery in High Island Block A-268 in the Gulf of Mexico, offshore Texas. It is planned that this new field, which is located 125 kilometres off the coast of Texas and in which Providence holds a 5% working interest, will undergo a fast-track development to existing infrastructure. First production from the field is planned for later this year (2007).

Speaking today, Tony O'Reilly Jnr, Chief Executive of Providence, said:

"We are delighted to be a part of this successful drilling programme in the Gulf of Mexico. This High Island project is part of Providence's objective to increase its daily production rates and we are delighted that the consortium is planning to move ahead with a fast track development programme for the second half of 2007."

"Whilst final production rates are still to be determined, it is anticipated that initial field rates will be in the region of 14 MMSCFGPD and 280 BOPD (c.100 BOEPD net to Providence) when production starts later this year, significantly increasing our present daily production. Drilling and development costs will be met from existing Providence financing resources."

"Furthermore, the encouraging results from this well, give the Company greater confidence as to the potential for further step out locations and associated incremental production from this block in the future. In addition, Providence, as part of a US-based industry consortium, continues to examine other such opportunities in the Gulf of Mexico as we look to continually increase our daily production rates in a timely and cost-effective manner."