Providence finds oil off Irish coast

Providence Resources, the exploration company, has struck oil off the Irish coast in a massive boost for the country's oil industry.

The Barryroe well, 50km off the Cork coast, is Ireland's first viable oil well.

Oil is flowing at a rate of nearly 4,000 barrels a day, double the rate expected, Providence said.

The find raises hopes that Ireland could become a major oil producer.

Providence holds an 80 per cent stake in Barryroe, with Lansdowne Oil & Gas having the remaining 20 per cent.

The company added that the upper gas bearing basal reservoir zone is being prepared for testing with flow rates from this section planned to be comingled with the basal oil zone to assess any additional flow rate potential.

Tony O'Reilly, Providence chief executive officer, said the well's flow rates of 3,514 barrels of oil a day exceeded the firm's pre-drill target of 1,800.

"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.

Posted by Claire Manning