Providence has agreed, along with its partner Atlantic Petroleum, an option with Sosina which provides Sosina with the right to acquire up to a further 50% equity interest in the Hook Head oil discovery in return for the drilling of an appraisal well in 2011. The Hook Head oil accumulation is located in Standard Exploration License 2/07 and is situated some c. 65 kilometers offshore Ireland in the North Celtic Sea Basin in c. 80 meter water depth.
Pursuant to the agreement, 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 and will acquire an additional 40% equity interest and the right to operate should it elect to fully fund and drill an appraisal well on Hook Head by the end of 2011. Under such a circumstance, the revised equity interests in the field would be Sosina (59.17%), Providence (32.59%) and Atlantic (8.24%). The farm-out transaction is subject to Irish governmental approval.
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