Irish exploration group Island Oil & Gas said the Schull gas field in the Celtic Sea has the potential to be a standalone commercial development after making its second discovery in the area.
Commenting on the latest discovery, chief executive Paul Griffiths said it was too early to say how much gas the field contains, but said that if all goes to plan production could start as early as October next year.
In a statement yesterday the company said it had successfully tested dry gas at a rate of 21 million standard cubic feet per day from one of its wells in the Schull field. This is the group's second discovery at the field, which lies immediately to the southwest of the Seven Heads gas field, and the fourth discovery of its 2006-2007 drilling programme. Island has a 62.5 per cent interest in the Schull field.
Mr Griffiths said the most recent discovery had revealed a two-fold increase on what the company had anticipated would be contained within the well, but that more precise details would be know within the next few months.
He also said Island was now carrying out a study to determine the optimum development scenario for its three Irish gas fields, which will look at using at least one of the offshore Ireland gas fields as a storage facility to allow for an increase in winter gas production at a time when prices are traditionally higher.
