Providence Resources has acquired a 10 per cent stake in the West Lennox oilfield and the adjoining Crosby exploration prospect, both located in the Liverpool Bay area.
The West Lennox field contains an oil discovery which when drilled in 1990 encountered oil in reservoir sands similar to that which is currently producing 20,000 barrels per day in an adjacent block.
Estimates of recoverable reserves from the West Lennox field range from 1.6 million barrels of oil.
Should initial drilling prove successful, the field's partners will target end late 2006 for first production from the block.