The Barryroe oil field in the North Celtic Sea Basin, offshore Ireland, has significant production potential, according to the latest studies by operator Providence Resources.

Providence, which part-owns the licence (80% stake) along with AIM-listed peer Lansdowne Oil & Gas (20%), recently undertook static and dynamic modelling of the main Basal Wealden oil-bearing reservoir interval.

The work established oil recovery factors ranging from 17% to 43%. Based on a development scenario involving 41 horizontal production and 22 horizontal water-injection wells over a 25-year field life, Providence says that a recovery factor of 31% is modelled.

"These reservoir and dynamic modelling studies have identified significant productive potential in the Basal Wealden reservoir, which is consistent with the test and other data that we have previously announced," said Providence's Technical Director John O'Sullivan.

Meanwhile, Lansdowne's Chief Executive Officer Steve Boldy said: "The latest results from the technical evaluation work on the Barryroe Oil Field announced today by Providence Resources are very encouraging. These results highlight the materiality of this asset in Lansdowne's portfolio and also demonstrate the potential of the Basal Wealden reservoir play in the wider North Celtic Sea Basin context."

All of the above is part of the first results of a half-decade long effort to increase global energy supplies after production in the previous oil majors, such as the Russian Federation, Saudi Arabia and the United States hit a glass ceiling.

In fact, just today in its monthly oil market report the Organization of Petroleum Exporting Countries (OPEC) has indicated that growth in non-OPEC oil supply (of 900,000 barrels a day) is expected to outstrip the increase in global demand (800,000 barrels a day).

Similarly, the International Energy Agency (IEA) yesterday estimated that Iraqi oil production may reach 8m barrels per day in 2035, with "[the country expected to make] by far the largest contribution to global oil supply growth over coming decades".

Related share prices
Providence Resources (PVR) share price
Lansdowne Oil & Gas (LOGP) share price