Dublin-based oil explorer Providence Resources has confirmed a significant increase in the oil-in-place figures for its Barryroe prospect off Ireland's south-west coast. The field is now estimated to contain up to 1.6bn barrels of oil. But, after motoring strongly this year - the share price is up 225 per cent so far - the price failed to respond and we reckon it would be a good move to take some profits.
The increased estimate puts Barryroe up there with some of the biggest discoveries off the British Isles, such as 2001's 1.2bn-barrel Buzzard discovery (Buzzard has a much higher recovery rate than that expected at Barryroe, though). Providence will now look to firm up Barryroe's value by establishing the recovery rate and the probable cost of development, which it should reveal towards the end of the year.
