An appraisal well has confirmed a gas discovery in block 18/20 west of Ireland, where Statoil holds an interest.
Operator Enterprise Oil regards the Corrib find in the Slyne Trough as promising after semi-submersible Sedco 711 completed drilling the well and a production test.
The discovery lies 70 kilometres west of Achill island in 350 metres of water.
Enterprise is very pleased with the test results, and believes that the appraisal well has confirmed a large potential in this area.
That view is shared by Statoil Exploration (Ireland). But more appraisal and exploration wells will be needed before a possible development decision can be taken.
Statoil has a 15 per cent interest in the Corrib licence, while Enterprise has 45 per cent and Saga Petroleum UK 40 per cent.
Seismic surveys have also been completed by Statoil Exploration (Ireland) on acreage west of the Republic this year, and the company is planning to drill exploration wells there in 1999.