Providence agrees Hook farm-out

Oil and gas exploration firm Providence Resources has agreed a farm-out deal with Sosina Exploration that could see Sosina take a 50 per cent stake in the Hook Head oil discovery.

As part of the agreement, Sosina will fund and carry out a number of studies on potential appraisal drilling and development feasibility of the discovery.

This will net the firm a 10 per cent stake, with the option to increase it by another 40 per cent should it fund and drill an appraisal well on Hook Head by the end of next year. Sosina will also have the right to operate it.

If that happens, Sosina will have a 59.17 per cent stake in the field, with Providence taking a 32.59 per cent interest and Atlantic Petroleum’s stake at 8.24 per cent.

The Hook Head oil discovery is in the North Celtic Sea Basin, about 65km offshore Ireland. The deal is still subject to governmental approval.