Shares in Irish oil and gas explorer Providence Resources jumped by more than 10 per cent in trading in both Dublin and London on Tuesday after it confirmed that it had entered discussions with a number of parties over the Barryroe oil field.

Located in the North Celtic Sea Basin, about 50 km off Co. Cork, Barryroe has had six wells successfully drilled on the structure. Providence was granted an extension of its exploration for the oil fiel, in February.

A number of recent media reports have suggested that Providence is close to agreeing an investment in the project although in a statement issued on Tuesday the group said there was no certainty that a mutually acceptable agreement would be reached.

Providence said the nature of the commercial discussions underway involve the evaluation of the fiel on a phased development basis.

Surveys conducted on Barryroe in 2012 indicated that the Lower Wealden and Purbeckian areas of the field could yield 778 million barrels of oil.

Four wells in the Ballyroe Field were drilled in the 1970's by Esso with a further appraisal well drilled in 1990 by Marathon Oil. The sixth well was drilled by Providence in 2011 and 2012.

Providence holds an 80 per cent stake in Ballyroe with partner Landsdowne holding the remaining 20 per cent share.