Providence Resources says a third party seismic study on the Dragon gas discovery off the southeast coast has increased the resource potential of the tested gas bearing sands.

The exploration company said the results are ''extremely positive'', especially from an Irish perspective as they suggest a more extensive reservoir system extending much further into Irish waters.

The Dragon gas discovery is in the St George's Channel basin and is located about 40km off the coast of Ireland.

''Given these very encouraging results, additional reprocessing of the Dragon 3D data and well planning have now commenced as a prelude to finalising the well location for appraisal drilling in 2012,'' commented Providence's technical director John O'Sullivan.