Shares in Providence Resources have closed almost 12% higher after the group confirmed it has entered into commercial discussions with a number of interested parties in relation to the Barryroe oil field.

Recent reports suggested that Providence was close to agreeing a $300 million investment in the project off the Cork coast.

It had been expected that the discussions could lead to early production and development of the asset to maximise returns from the field.

However, in a statement today, the group cautioned that there was no certainty that the talks would conclude in a "mutually acceptable agreement".