Exploration company strikes oil off County Cork

An exploration company has struck oil and discovered the first commercial well off the Irish coast.

Providence Resources said flows in Barryroe, 50km from Co Cork, is almost double the 1,800 barrels of oil per day (bopd) barrier set by the firm as being commercial.

Tests are also being carried out on gas flow rates in the area.

Tony O'Reilly, chief executive of Providence, said flow rates of 3,514 bopd have been discovered at 100-metre depth in the North Celtic Sea Basin.

"The well has also confirmed that the basal sands are laterally continuous, highly productive and that the oils are of a very high quality," he said.

The test area covered 300 sq km - equivalent to a medium to large North Sea oil field - and was bigger than expected with much better flow rates than first hoped for. Providence Resources made the announcement on the Dublin and London stock exchanges.

PA