West Cork oil bonanza

First it was Barryroe, now it's Drombeg off the Baltimore coast. West Cork could reap the financial benefits with news that there is another significant oil prospect off the coast of West Cork. Providence Resources, who are already involved in the Barryroe operation have this week provided a technical update on the Drombeg prospect which lies about 200km south west of Baltimore.

"While a lot of our focus has understandably been on our Barryroe oil field, it's great to be able to provide shareholders with an update on another significant project within our portfolio where we hold a major equity position as we advance towards the drill-ready stage," said John O' Sullivan, Technical Director of Providence Resources.

The Drombeg prospect lies in about 3,000 metres below the seabed and is located in the southern Porcupine Basin, which is about 220km off West Cork.

"The work carried out by Ikon Science clearly demonstrates that Drombeg offers significant potential, exhibiting many of the key ingredients of a major hydrocarbon accumulation. Given Drombeg's location and water depth, it is likely that we will seek a capable joint venture partner with deepwater operating experience though that view may change with positive results from the upcoming Dunquin well that is to be drilled in 2013."

This comes in the wake of news two weeks ago that it is estimated that there could be up to 1.6 billion barrels of oil off the Barryroe coast. The news was reported in The Cork Independent and which was welcomed enthusiastically by business leaders in Cork. This figure was four times as much as was originally thought when the studies were carried out in March.