Exploration company Providence Resources has agreed an option with Sosina Exploration, which will see the firm acquire a 50% stake in the Hook Head oil discovery. In return, Sosina will drill an appraisal well there next year.
The Hook Head oil accumulation is situated about 65km offshore Ireland in the North Celtic Sea Basin.
Providence says that Sosina has agreed to fund and carry out a number of studies on potential appraisal drilling and development feasibility of the Hook Head discovery for a 10% interest. It also has the option of acquiring an additional 40% equity interest and the right to fully fund and drill an appraisal well on Hook Head by the end of 2011.
The farm-out transaction is subject to Government approval.
