But to me, that looks more like a subchrondral bone cyst (SCB cyst). Either way, it will need surgical debridement (cleaning up the bone and removing any pieces) as well as injection of the cyst with corticosteroids and a controlled exercise program. The prognosis can be as good as 75-85%.
However, you major problem with either of these two conditions is osteoarthritis/degenerative bone disease, especially as you want to barrel race which is hard on a horses joints. There are lots of joint supplements and treatments to try prevent/reduce the amount os osteoarthritis. Have you heard of IRAP? I'm not sure its in your country and it is quite expensive, but its shown great results with DJD.
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