Experts say an oil field off the coast of Cork could produce four times more than was first estimated.

Dublin-based Providence Resources announced today that its Barryroe well holds up to 1.6bn barrels, well exceeding estimates released a few months ago.

The well lies 50 kilometres from the south coast.

Oil has been hit in the Barryroe area before, but sites fell below the commercialisation target when examined in the 1970s and 1980s.

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The 300 square kilometre field is as big as a medium-to-large North Sea gas field.

Providence Resources, which operates the Barryroe licence on behalf of its partners Lansdowne Oil and Gas, announced the new estimates on the Dublin and London stock exchanges this morning and share prices are expected to soar.

Tony O'Reilly, chief executive of Providence, said: “We are delighted that more comprehensive studies of Barryroe confirm a resource base of between 1bn and 1.6bn barrels of oil in place, with further potential for incremental resource growth.

"This is a considerable increase from earlier estimates, which indicated 373m barrels of oil.

"We are delighted to be in a position to provide such a significant increase in the Barryroe oil in place resources."

Further work is being done to see how much oil can be extracted.

(NE)