Exploration company Providence has reached conditional agreement with Star Energy Group to acquire its 79 per cent share in Britain's Singleton Oil Field for $22 million.
The deal will boost Providence's interest in the oil field to more than 99 per cent, with the remaining 0.875 per cent owned by Noble Resources.
The purchase, which is subject to regulatory approval, will also include an agreement to work with Star on a proposed natural gas project at the Singleton site and collaboration on future gas storage projects in the Republic of Ireland.
Providence chief executive Tony O'Reilly jnr described it as a "pivotal transaction" for the company and said it would allow the firm to increase daily oil production to approximately 600 barrels of oil per day.
"Having owned 20 per cent of Singleton for over 15 years, we are very comfortable with its operational parameters as well as its geological opportunities, and we see upside in both these areas going forward," he said.
