P/F Atlantic Petroleum says that the Standard Exploration Licence (SEL) 2/07licence partners Providence and Atlantic Petroleum have agreed to farm down upto 50% equity interest in the Hook Head oil discovery to Sosina ExplorationLimited.

An option has been agreed which provides Sosina with the right to acquire up toa further 50% equity interest in the Hook Head oil discovery in return for thedrilling of an appraisal well in 2011.

Pursuant to the agreement, Sosina has agreed to fund and carry out a number ofstudies on potential appraisal drilling and development feasibility of the HookHead discovery for an additional 10% interest. Sosina will acquire anadditional 40% equity interest and the right to operate should it elect tofully fund and drill an appraisal well on Hook Head by the end of 2011.

Atlantic Petroleum currently holds 18.3% interest in Hook Head with operatorProvidence (72.5%) and partner Sosina Exploration (9.2%). In the event thatSosina exercises its option and drills a well, the participating interestswould be Sosina (59.17%), Providence (32.59%) and Atlantic Petroleum (8.24%).The farm-out transaction is subject to Irish governmental approval.

Ben Arabo, Atlantic Petroleum's CEO, stated: “Following our recent announcementregarding the farmout of the Nemo discovery to Nautical, we are pleased thatfurther work is being carried out on discoveries to help unlock the potentialof the Celtic Sea.”

Tags: Atlantic Petroleum