One billion barrels of oil found off the south-west coast – Irish, Business – Independent.ie
THE value of exploration company Petrel Resources quadrupled after it said it had found as much as one billion barrels of oil off the south-west coast.
The vast reserves are in the so-called South Porcupine basin, which is a huge area off the coast of Kerry.
Petrel believes new computer analysis shows several oil fields on top of one another.
This would make it relatively easy to extract any oil because a single well could suck up oil from many fields.
The snag for Petrel is that any oil is 200km from the coast and lies beneath 1km of water and 3km of rock.
The oil industry is changing quickly as new techniques and high prices allow companies to extract oil from areas that were once believed to be too difficult to drill.
Shares in Petrel soared fourfold to 27 pence from 6 pence on London’s AIM stock exchange after the company reported a raft of promising drilling targets in the South Porcupine basin.
Petrel is one of the many companies set up by serial entrepreneur and former UCD academic John Teeling, who has also made millions from whiskey and mining companies.
Mr Teeling told the Irish Independent that the success of Providence Resources, which has also found signs of gigantic oil reserves in the Porcupine Basin, had put Ireland on the map with international investors and oil companies.
Petrel would now look for a partner to share the expense of drilling for oil and apply to the Government for a licence, he added.
London stockbroker Northland Capital described Petrel’s comments as “very bullish” but warned that drilling in these waters would be difficult and costly.
Posted on November 13, 2012, in buisiness, oil and tagged International Energy Agency, Ireland, Irish, Irish Independent, Irish News, Irish oil, London, Petrel, Saudi Arabia, United States. Bookmark the permalink. 1 Comment.