Providence Resources P l c : Half Year 2017 Results - LEADERSHIP IN DRILLING OFFSHORE IRELAND

Dublin and London - September 21, 2017 - Providence Resources P.l.c. (PVR LN, PRP ID), the Irish based Oil and Gas Exploration Company, today announces its unaudited interim results for the half year ended June 30, 2017.

Tony O'Reilly, Chief Executive Officer commented:

"The first half of 2017 was an exceptionally busy period for Providence as we completed the extensive consenting and logistical processes for the drilling of the 53/6-1 Druid/Drombeg ultra-deepwater exploration well. During this period, we completed a major farm-out deal with Cairn, together with an option transaction with TOTAL over FEL 2/14. We also agreed a farm-out to TOTAL on LO 16/27, as well as an option with Cairn, and we continued various commercial discussions on a number of our assets, most principally our flagship Barryroe project.

The commercial transactions with Cairn and TOTAL provided incremental capital in excess of $45 million to be used for the drilling programme - this not only allowed for the deepening of the 53/6-1 exploration well to test the Drombeg prospect, but it also significantly reduced our financial exposure to the drilling costs. These transactions also mean that the majority of Providence's Atlantic Margin assets have been successfully farmed-out to majors in accordance with our corporate strategy, with Avalon under the operatorship of TOTAL, Dunquin now under the operatorship of Eni and with TOTAL having an option to assume operatorship at FEL 2/14, which contains the undrilled Diablo prospect. Our last remaining Atlantic Margin asset, Newgrange, is the subject of ongoing farm-out discussions.

The drilling of the 53/6-1 Druid/Drombeg exploration well was a major operational undertaking for Providence, being situated in the deepest water depth ever drilled offshore north-west Europe. This is a real credit to the Providence operational team and sub-contractors who worked so diligently to ensure its safe and environmentally benign delivery. The results from the 53/6-1 well were disappointing as, while both reservoir sections were encountered within the pre-drill depth prognosis, both were water bearing. The possible presence of bitumen was reported in drill cuttings within the Drombeg reservoir interval, which may indicate that it received an oil charge which was not retained at this location. However, further studies will be required in order to confirm this interpretation and its implications for the wider prospectivity within FEL 2/14.

At Barryroe, we have continued farm-in discussions - but to date, no deal has been consummated. Whilst discussions continue, the Board has taken a decision to advance drilling at Barryroe. Noting the significant value attributable to Barryroe and prevailing low rates for rigs and associated offshore services, we have moved forward with planning for drilling (and possibly a side-track). Last month, we issued a request for expressions of interest for the supply of a mobile offshore drilling unit and have started the consent process for drilling. The details on the forward dates for the planned drilling programme will be communicated once the schedule is finalised.

Looking ahead, we await the decision whether TOTAL will exercise their option to farm-in to FEL 2/14 and we also look forward to seeing the outcome of exploration wells planned for acreage proximate to FEL 2/14, which will test plays similar to Diablo and to those which have proved to be successful in the conjugate Flemish Pass Basin, offshore Canada. Regarding Avalon, we also await the decision whether Cairn will exercise their option. Under the TOTAL farm-in to Avalon, there is already a partial promoted carry on a contingent exploration well.

As demonstrated by our recent drilling, Providence remains the most active explorer offshore Ireland, with over 20 years' operational experience generally and specifically some 13 years since it first licenced acreage in the Porcupine Basin. Looking ahead, we will continue to seek to capitalise on the significant and unrealised value of our portfolio for the benefit of our shareholders."

APPRAISAL PROJECTS

• Barryroe, North Celtic Sea Basin (SEL 1/11)

  - Farm-out discussions continued

• Offshore Petroleum Lease 1 (OPL 1) South Option, North Celtic Sea Basin

• Latest mapping shows that this area has the potential to host significant incremental resources

  EXPLORATION PROSPECTS

  • Druid/Drombeg & Diablo, Southern Porcupine Basin (FEL 2/14) Cairn Farm-In

    • Farm out signed with Capricorn, a wholly owned subsidiary of Cairn Energy PLC, where in consideration for Capricorn taking a 30% working interest in FEL 2/14, with an effective date of 1 July 2016, Capricorn agreed to:

      • Pay 45% of the drilling costs of the 53/6-1 exploration well, subject to a gross well cap of US$ 42 million, and thereafter at their 30% cost share

      • Make a cash payment of US$ 2.82 million on a pro rata 80/20 basis to Providence and Sosina

    • Capricorn also agreed that, in the event that the JV partners agree to drill an appraisal well in FEL 2/14, it will pay 40% of well costs subject to a gross well cap of US$ 42 million and have the right to take over operatorship

    • The equity ownership in FEL 2/14 is currently Providence 56% (Operator), Capricorn 30% and Sosina 14%

      TOTAL Option

    • Exclusive option agreed with TOTAL E&P Ireland B.V. ("TOTAL"), a wholly owned subsidiary of TOTAL S.A. which gives TOTAL the option and the right, but not the obligation, to farm-in to a 35% working interest in FEL 2/14 from Providence & Sosina, subject to the payment of US$ 27 million to Providence and Sosina (US$ 21.6 million and US$ 5.4 million, respectively).

    • The option can be exercised by TOTAL within 60 business days of the completion (P&A'ing) of the 53/6-1 well

    • The amount payable by TOTAL to Providence & Sosina (on a pro rata 80/20 basis) to acquire the Option is:

      • US$ 20.250 million (US$ 16.2 million to Providence) - this was paid on June 19th

      • US$ 6.750 million (US$ 5.4 million to Providence) - this is payable no later than 3 business days following the issuance of the P&A notice for the 53/6-1 well

    • If TOTAL subsequently elects to exercise the option, Providence, Sosina and TOTAL will enter into an agreed form farm-in agreement to effect the transfer of a 35% working interest and operatorship in FEL 2/14 to TOTAL, such farm-in would be subject to Ministerial approval

    • On this basis, the equity ownership in FEL 2/14 would be TOTAL 35% (Operator), Capricorn 30%, Providence 28% and Sosina 7%

  • Avalon, Porcupine Basin (LO 16/27) TOTAL Farm-in

    • Farm-in signed with TOTAL E&P Ireland B.V. ("TOTAL"), a wholly owned subsidiary of TOTAL S.A, where in consideration for TOTAL taking a 50% working interest in LO 16/27, TOTAL agreed to:

      • Pay its pro-rata share of past gross costs of c. US$ 0.175 million

      • In addition to its pro-rata share, pay 21.4% of the past and future costs during the 2-year term of LO 16/27, subject to a gross cost cap of US$ 1.33 million

    • Subject to Ministerial approval, TOTAL is to assume operatorship of LO 16/27 with the resultant equity in LO 16/27 being TOTAL 50% (Operator), Providence 40% and Sosina 10%

    • TOTAL also agreed that, in the event that the JV partners agree to convert LO 16/27 into a Frontier Exploration Licence, and a subsequent decision is taken to drill an exploration well, TOTAL will pay 60% of the drilling costs, subject to a gross well cap of US$ 42 million

    Cairn Option

• Exclusive option agreed with Capricorn, a subsidiary of Cairn Energy PLC

• Under the terms of the option, Capricorn has the right to farm-in to a 20% working interest in LO 16/27 from Providence and Sosina

• The option can be exercised by Capricorn within 60 days of the completion (P&A'ing) of the 53/6-1 well on Frontier Exploration Licence 2/14

• In the event that Capricorn exercise their option, Providence, Sosina and Capricorn will enter into an agreed farm-in agreement to effect the transfer of a 20% working interest in LO 16/27 to Capricorn, based on the following terms where Capricorn will:

  • Pay its pro-rata share of past gross costs of c. US$ 0.175 million

  • In addition to its pro-rata share, pay 8.6% of the past and future costs during the 2-year term of LO 16/27, subject to a gross cost cap of US$ 1.33 million

• Capricorn also agreed that, in the event that the JV partners agree to convert LO 16/27 into a Frontier Exploration Licence and a subsequent decision is taken to drill an exploration well, Capricorn will pay 24% of the drilling costs, subject to a gross well cap of US$ 42 million

• In the event that Capricorn exercises the option, the final equity in LO 16/27 will be TOTAL 50% (Operator), Providence 24%, Capricorn 20% and Sosina 6%

• Conclusion of any farm-in by Capricorn would be subject to Ministerial approval

  • Dunquin South,Southern Porcupine Basin (FEL 3/04)

• Licensing of 1,800 km2 of 3D seismic data from CGG as part of their Porcupine Basin multi-client 3D acquisition programme, which was acquired in June 2017

  • Kish, Kish Bank Basin (SEL 2/11)

• Company's working interest increased to 100%

• Extension to the 1st phase of SEL 2/11 to August 2018 and an overall extension of one year to the licence term to August 2020

  H1 2017 FINANCIAL HIGHLIGHTS

  • Operating Loss for the period of €3.916 million versus €2.216 million in H1 2016

  • Loss of €3.441 million versus €4.440 million in H1 2016

  • Loss per share of 0.58 cents versus 3.17 cents in H1 2016

  • At June 30, 2017, total cash & cash equivalents were €36.398 million (€0.522 million at June 30, 2016) with a further payment of US$ 5.4 million to Providence from TOTAL 3 days after the P&A'ing of the 53/6-1 well

  • The Company had no debt at June 30, 2017 (€19.546 million at June 30, 2016)

    BOARD CHANGES

  • In May 2017, Angus McCoss joined the Board as a Non-executive Director

    POST JUNE 30 EVENTS

  • Barryroe, North Celtic Sea Basin (SEL 1/11)

• Extension to the 1st phase of SEL 1/11 to July 2019 and overall licence extension of 2 years to July 2021

• New 3D seismic uplift provides significantly enhanced visualization of Barryroe reservoir interval

• Planning now underway for a well to be drilled in 2H 2018/1H 2019

• EOI issued for drilling rig

• Revised well cost estimates for single vertical well of c. US$ 20 million

  • Druid/Drombeg, Southern Porcupine Basin (FEL 2/14) Drilling Operations

• The 53/6-1 exploration well spud on July 11, 2017 using the Stena IceMax drill-ship, targeting the Druid and Drombeg exploration targets

• On August 4, 2017, the Company confirmed that:

  • Paleocene Druid reservoir interval encountered with the pre-drill depth prognosis

  • Preliminary interpretation indicated Druid comprises a porous water bearing reservoir interval

• On September 11, 2017, the Company confirmed that:

  • Lower Cretaceous Drombeg reservoir interval encountered with the pre-drill depth prognosis

  • Preliminary interpretation indicated Drombeg comprises a porous water bearing reservoir interval

  • The possible presence of bitumen was reported in drill cuttings within the Drombeg reservoir interval which may indicate that it received an oil charge which was not retained at this location

  • Post well studies will be carried out on the well data and the possible presence of bitumen to confirm this interpretation and its implications for the wider prospectivity within FEL 2/14

• In accordance with the pre-drill plans, the well is currently being plugged and abandoned

  • Avalon, Southern Porcupine Basin (LO 16/27)

• A large scale calibrated Petroleum Systems Model (PSM, c. 48,000 km2), which included the LO 16/27 area, supports the potential of a working petroleum system in LO 16/27

• The model demonstrates that the Avalon prospect could potentially access a total hydrocarbon resource charge of c. 8.67 BBO and c. 21.43 TSCF (equivalent to c. 12 BBOE)

  • Newgrange, Goban Spur Basin (FEL 6/14)

• Farm out process ongoing

OUTLOOK

We have a high quality portfolio of assets with significant partners and are very optimistic about the prospects both for Providence and the Irish Oil & Gas sector. We remain both determined and uniquely positioned to continue to lead the industry in identifying and realising Ireland's significant offshore potential.