Exploration company Providence Resources says a study has shown a significant gas prospect, called Marlin, 10km north-west of the Kinsale Head gas field.
The company says geological modelling suggests the prospect has a total resource potential of 74 billion standard cubic feet of gas.
Providence owns 60% of the licensing option in the Celtic Sea and operates it on behalf of its 40% partner Nautical Petroleum.
'We are excited about this new exploration prospect as it is in the same geological setting as other proven producing fields in the region and it is very close to the Kinsale Head production facilities,' said Providence's technical director John O'Sullivan.
'In particular, the Marlin prospect demonstrates striking similarities to the nearby Ballycotton gas field, which is a highly successful offshore development,' he added.
Shares in the company closed 9.4% higher at €1.97 in Dublin this evening.
