THE BARRYROE OIL field off the Cork coast had promised much, with investors predicting high returns from Providence Resources which has an 80 per cent interest in the project and seen its share prices surge on the back of such high expectation.
The latest update from the exploration firm seems to justify the hype.
Providence has trebled its oil estimates for the Cork project, suggesting that there is between 1 and 1.612 billion barrels of oil in place, 50km off the coast. Earlier drilling had confirmed the presence of commercial quantities of both oil and gas.
The new projections come after studies completed in March this year. According to Providence, the subsurface mapping and geological modeling results have confirmed that the structure covers a very large area, and comprises four distinct hydrocarbon bearing reservoir zones.
“We are delighted to be in a position to provide such a significant increase in the Barryroe oil in place resources,” commented chief executive Tony O’Reilly. He believes that there may also be further potential at deeper reservoir intervals.
“It is clear from these studies that Barryroe is a substantial oil accumulation across multiple stacked horizons with much running room for further resource growth,” he added.
Yesterday, shares in Providence closed at 650 pence, valuing the company at £420 million. Lansdowne Oil and Gas plc hold the remaining 20 per cent interest in the field. The firm is currently looking for larger investors to come in as a partner on the project – one of six it currently has on its books.