Oil and gas exploration firm Providence Resources said there could be significant oil potential in its prospect on the east coast of Ireland
The company said its analysis the Dalkey Island prospect in the Kish Bank Basin showed the presence of a large untested structure that warrants further investigation.
Providence said the prospect could contain about 870 million barrels of oil, but warned it still had "significant" risk.
"However, given its location in shallow water and close proximity to shore, the prospect is of great interest as exploration drilling, together with any future development costs, are likely to be low," the company said in a statement.
"We are delighted to confirm that our ongoing analysis of the Kish Bank Basin has revealed the presence of a large untested structure that warrants further investigation," said chief executive Tony O'Reilly.
"The Dalkey Island exploration prospect presents the potential for a large oil accumulation in shallow water off the east coast of Ireland. The partners have agreed on a focused work programme aimed at further de-risking this prospect, prior to any drilling programme."
