Cairn: Greenland oil finds too small
Wednesday 27 October 2010
Cairn Energy disappointed early hopes for oil exploration in Greenland yesterday with the admission that initial finds were too small to commercialise.
Two of the group's three wells have been plugged because the deposits are too small. The third has been suspended because Cairn has not been able to drill deep enough, although it may be revisited next year. And the group is writing off $185m (£117m) in connection with the operations.
Mike Watts, Cairn's deputy chief executive, stressed the positive implications of finding any oil at all in the unexplored Arctic region.
"Exploration in Greenland is at a very early stage and consequently to have encountered both gas and oil in two of the first exploration wells in the previously undrilled Baffin Bay geological basin is extremely encouraging," he said.
But the admissions were still a comedown from the "royal flush" of early successes championed by Mr Watts at a London conference earlier this month, and City disappointment dragged the stock down by 7 per cent.
Cairn's discovery of traces of oil and gas in its first two wells in Baffin Bay have created a flurry of interest in the inhospitable region. The company's progress is being closely watched by the international oil majors, several of which have licences to drill in the region but have not yet used them.
- 1 Avengers: Age of Ultron: Nearly 700 German cinemas refuse to show movie
- 2 Donald Trump decides that Baltimore riots are Barack Obama's fault
- 3 X Factor in crisis as numbers of people auditioning plummets
- 4 General Election 2015: Stephen Hawking says he will vote Labour
- 5 Baltimore riots: Furious mother marches her son home live on TV
Bali Nine executions live: Indonesian firing squad shoots dead eight drug offenders despite outcry around world, but a ninth is spared
Keith Harris dead: Orville the Duck ventriloquist dies aged 67 following battle with cancer
The four utterly contradictory polls that tell the story of this election and why it is pointless trying to predict the outcome
Donald Trump decides that Baltimore riots are Barack Obama's fault
General Election 2015: Prospect of Labour-SNP coalition makes one in four voters less likely to support Ed Miliband, says survey
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
EU exit would hit UK economy much harder than neighbouring countries, study finds
Andrew Lloyd Webber: Phantom of the Opera writer mocked after issuing a warning about Ed Miliband and Nicola Sturgeon
General election 2015: Labour will toughen hate crimes legislation surrounding Islamophobia
iJobs Money & Business
£30000 - £38000 per annum: Recruitment Genius: They are a financial services c...
£Basic (OTE) + Uncapped Commission: Guru Careers: A Stockbroker (qualified / p...
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...