Modest rise in Providence shares
SHARES in oil and gas exploration firm Providence Resources rose modestly yesterday after the firm said it had inked a deal with UK-based peer Sosina that will result in the latter funding feasibility studies on a potential appraisal well at the Hook Head prospect in the north Celtic Sea basin.
Under the terms of the contract, Sosina has secured an initial 10pc stake in the Hook Head prospect in return for undertaking drilling and development feasibility studies.
It could secure a further 40pc interest in the prospect if it proceeds with the drilling of an appraisal well by the end of 2011. Should that occur, Providence will be left holding an almost one-third interest, with Atlantic Petroleum retaining just over 8pc.
Providence has to date had some mixed results from the Hook Head resource. In 2007, a well drilled on the north-west of the prospect pinpointed reserves but they were less than had been expected.
It had already shown that the majority of the reserves within the Hook Head prospect were located within the centre of the structure. Four wells in total have been drilled at the Hook Head structure.