Oil and gas explorer Providence Resources today trebled its estimate of potential has resources at its Dragon prospect in south east of Ireland.
The AIM-listed exploration and production company said Dragon has showed “significantly increased resource potential” following a seismic inversion study over the gas discovery in the St George’s Channel Basin.
It said previous work on Dragon had suggested resources in place of up to 100billion standard cubic feet (bscf) – 25% in Ireland and 75% in UK waters.
However, it said a recent study, carried out by IKON Geoscience, found that the Dragon gas accumulation may extend further into Irish waters than had been previously been mapped.
Potential resource was now estimated at up to about 300bscf, with 75% in Irish waters.
Providence said further work is now being carried out on its 3D seismic data as part of the planning of an appraisal well to be drilled in 2012.
John O’Sullivan, technical director of Providence, said: “The recently-completed IKON study has significantly increased the resource potential of the tested gas-bearing sands in the Dragon discovery.
“The results are extremely positive, particularly from an Irish perspective.
“Given these very encouraging results, additional reprocessing of the Dragon 3D data and well planning have now commenced as a prelude to finalising the well location for appraisal drilling in 2012.”
Dragon lies in about 330ft of water about 25 miles offshore Ireland and extending into block 103/1 in which Marathon Oil drilled a discovery well in 1994.
Providence has applied for UK block 103/1 as part of a recent UK Government “out of round” process.