Enterprise Oil, the company which is part of the consortium exploring for gas off the Co Mayo coast, is being widely tipped as a buy for investors. Few exploration stocks have as many fans as this company with most brokerages issuing buy recommendations at a time when it is benefiting from high oil prices and is increasingly being seen as a takeover target.

The shares, which are quoted in London, have been rising in recent months trading at around £5.40 sterling (€8.60) this week. Brokers are now forecasting that the shares could rise above £6 sterling within 12 months.

Enterprise Oil is the biggest UK exploration and production stock with a market capitalisation of £2.5 billion sterling. Some of the upside in the share price reflects the shifting of funds out of technology stocks and a growing appreciation of the company's strong management team.

Few of the other UK exploration stocks have as much access to a steady supply of oil as Enterprise. The company estimates that every $1 rise in crude-oil prices boosts its earnings by £28 million sterling. Most analysts are predicting that average crude-oil prices will be more than $22 this year compared with $17 last year.

Enterprise Oil is part of a consortium including Statoil and Marathon which recently confirmed that its new well in the Corrib gas field off the Mayo coast had the potential to produce gas commercially. A further well is to be drilled this summer, although the consortium is not expected to proceed with the full-scale commercial development of the field until late this year.