Providence Resources P l c : PRELIMINARY RESULTS FOR THE YEAR ENDED 31ST DECEMBER 2016

Dublin and London - April 12, 2017 - Providence Resources P.l.c. (PVR LN, PRP ID), the Irish based Oil and Gas Exploration Company, today announces Annual Results for the year ended December 31, 2016.

Tony O'Reilly, Chief Executive Officer commented:

"2016 was a year of significant operational & financial progress for Providence. With drilling set to commence at Druid & Drombeg, fast growing interest in offshore Ireland from global majors, ongoing commercial discussions and renewed financial strength, 2017 looks set to be another significant year in our company's development.

With the support of existing and new investors, we successfully raised new funds in July 2016 which allowed us to restructure our balance sheet, repay all of our debt, and with some recovery in the oil price, we are pleased to report that farm-in activity has increased. This has enabled us to enter into discussions regarding new commercial opportunities, which are ongoing.

Off the west coast of Ireland, having made meaningful progress developing our portfolio and demonstrating its economic potential, we have also seen a marked increase in interest from industry in the region. In this new operating environment, we were able to announce the farm-in by Cairn into our Druid & Drombeg drilling programme, which will see Providence's cost exposure nearly halve. This puts us in an even stronger financial position, providing us with incremental cash resources whilst still allowing scope for further transactions. In this regard, farm-out negotiations are ongoing with various counterparties on a number of our assets. Whilst we are not in a position to confirm any further details at this time, we are working diligently to successfully conclude matters.

This summer, we are embarking on a very exciting period of operations starting with the drilling of a high impact exploration well targeting the multi-billion barrel potential of both the Druid & Drombeg exploration prospects. The Stena IceMAX drill-ship is already contracted and we expect drilling operations to commence in June, subject to the normal regulatory consents. The recently announced licensing of 3D seismic data to be acquired over the Dunquin prospect this summer is another key development which will further enhance our understanding of the hydrocarbon potential of this licence, which is now operated by Eni.

Our farm-in transaction with Cairn, combined with our ongoing commercial discussions and the other extensive work programmes currently being carried out offshore Ireland by the majors including ExxonMobil, Statoil, Eni, Nexen CNOOC, Woodside and Cairn clearly demonstrate the industry's renewed focus on the Irish offshore. In the North Celtic Sea Basin, the further appraisal and potential development of Barryroe remains another key objective for Providence. With this in mind, we are commencing various pre- permitting activities in anticipation of future drilling.

As the most active player in the region, with 20 years' operational experience generally and specifically some 14 years since we first licenced acreage in the Porcupine Basin, we will continue to seek to capitalise on this enhanced interest for the benefit of Providence's shareholders."

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

  • 2 year extension to Phase 1 of SEL 1/11 to July 2017 and an extension to the 2nd phase term to July 2019

  • Area of SEL 1/11 increased by c.118 km2to accommodate mapped potential extensions of Barryroe, formerly located within LO 12/4, which hasnow expired

  • Conclusion of all litigation with Transocean

  • Upper C-Sand GIIP within SEL 1/11 & OPL1 Option area now estimated at c. 400 BSCF

  • Farm-out discussions continued to be progressed

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

  • Option with PSE Kinsale Energy Limited (KEL) for a right to earn a 60% working interest in southern portion of OPL1 (subject to Ministerial consent) exercisable for a 3-year period

  • Option is earned through the 100% financing and drilling of exploration well to the Base Wealden

  • Based on Providencemapping, this area has the potential to host significant incremental resources

• Spanish Point Gas Condensate Project, Northern Porcupine Basin (FEL 2/04 and 4/08)

  • Adjacent third party Licensing Options awarded in 2016 from 2015 Atlantic Margin Licensing Round

• Helvick/Dunmore Oil Discoveries, North Celtic Sea Basin

  • Award of Lease Undertakings

  • 50% staged farm in by Marginal Field Development Company Limited

    EXPLORATION PROSPECTS

• Druid/Drombeg and Diablo Oil Prospects, Southern Porcupine Basin (FEL 2/14)

  • Multi-domain analysis with Schlumberger confirms that 3D seismic responses from the Druid & Drombeg prospects are consistent with the presence of 2 large vertically stacked stratigraphically trapped oil accumulations

  • Total cumulative in place un-risked prospective resources of c. 5.095 BBO (Pmean)

    • Druid - c. 3.180 BBO (Pmean)

    • Drombeg c. 1.915 BBO (Pmean)

    • Large deeply buried pre-Cretaceous Diablo Ridge presence confirmed

  • Adjacent third party Licensing Options awarded in 2016 from 2015 Atlantic Margin Licensing Round

  • Druid and Drombeg exploration prospects to be evaluated with a single vertical well

    • LR Senergy appointed as Well Management Company

    • Drilling contract signed with Stena Drillmax Ice Limited for use of the Stena IceMAX drill ship

    • Planned spud in June 2017, subject to regulatory consents

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

  • Dunquin North post-well technical studies continuing

  • Adjacent third party Licensing Options awarded in 2016 from 2015 Atlantic Margin Licensing Round

  • Eni appointed Operator

  • Providence's equity increased to 26.846%

• Avalon Oil Prospect, Porcupine Basin (LO 16/27)

  • Award of new Licensing Option in 2016 from the 2015 Irish Atlantic Margin Licensing Round

  • Large AVO stratigraphic Paleocene oil play identified

  • Identified prospect is analogous to and spatially larger than the Druid prospect

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

  • Schlumberger Collaboration Project supports top seal and reservoir presence for Cretaceous target

    • Prospective Resource Potential of c. 13.6 TSCF GIIP or c. 9.2 BBO STOIIP

    • Top Seal capacity analysis indicates potential for a hydrocarbon column of up to 350 metres

  • Adjacent third party Licensing Options awarded in 2016 from 2015 Atlantic Margin Licensing Round

• Kish Bank Oil Prospect, 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

• Relinquishments made to Licence Authorisations over:

  • Cuchulain (FEL 1/99), Southern Porcupine Basin

  • Polaris (P1885), Rathlin Basin

  • Dragon (UK) (P1885), St George's Channel Basin

  • Spanish Point South (FEL 1/14), Northern Porcupine Basin

  • Silverback (LO 13/4), South Celtic Sea Basin

    2016 FINANCIAL HIGHLIGHTS

• Operating Loss for the period of €18.844 million versus €13.080 million in 2015

• Loss of €20.546 million versus €24.147 million in 2015

• Loss per share of 5.80 cents versus 19.57 cents in 2015

• At December 31, 2016 total cash and cash equivalents were €31.403 million versus €6.518 million (at 31/12/15)

• In June, £53.712 million was raised through Placing 447.607 million shares at £0.12 pence per share and

  €1.516 million was raised through the issuance of 9.975 million shares at €0.152 cents per share

• The Company had no debt at December 31, 2016 versus €18.289 million (at 31/12/15)

• The total issued & voting share capital comprises 597,658,958 ordinary shares of €0.10 each

  BOARD CHANGES

• In October 2016, James McCarthy stepped down as Non-executive Chairman, Pat Plunkett was appointed Non-executive Chairman and Phil Nolan retired from the board

  POST YEAR END PROGRESS

• Druid/Drombeg Oil Prospects, Southern Porcupine Basin (FEL 2/14)

  • Farm out agreed with Capricorn, a subsidiary of Cairn Energy, subject to Ministerial approval

  • In consideration for Capricorn taking a 30% working interest in FEL 2/14 with an effective date of 1 July 2016, Capricorn will pay:

    • 45% of the costs of drilling the 53/6-A exploration well in 2017, subject to a gross well cap of $42 million

    • A cash payment of $2.82 million (being 30% of the total sunk costs of $9.4 million incurred through 30 June 2016 by Providence / Sosina on FEL 2/14) on a pro rata basis

    • In the event that the JV partners agree to drill a subsequent appraisal well in FEL 2/14, Capricorn will pay 40% of the appraisal well costs subject to a gross well cap of $42 million and will have the right to take over Operatorship.

  • Drilling operations are scheduled to commence June 2017, subject to regulatory approval

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

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

• Licensing of 1,800km2 of 3D from CGG as part of a multi-client 3D acquisition programme in 2017

OUTLOOK

With clear shareholder endorsement of our strategy to exploit our portfolio, a strong financial position and with the upcoming drilling of Druid & Drombeg, we are very optimistic about the prospects both for Providence and the Irish Oil & Gas sector. We remain both determined and uniquely positioned to lead the industry in identifying and realizing Ireland's significant offshore potential.