U.K.-based Cairn Energy on Tuesday announced that it had made its first oil discovery off the coast of Greenland.
Edinburgh-based Cairn said its Alpha-1S1 well in the sea between Greenland and Canada found oil over a 400-metre section and encountered gas reserves, the company said in a statement here.
“The presence of both oil and gas confirms an active, working petroleum system in the basin and is extremely encouraging at this very early stage of our exploration campaign for the Sigguk block and the entire area,” Cairn Energy chief executive Bill Gammell said.
Cairn said its other well, T8-1, which it had previously stated had found small quantities of gas, was plugged and abandoned after it failed to result in a commercial discovery. “The T8, Alpha and T4 (well Cairn is currently drilling) are the first wells in Cairn's exploration programme in Greenland and are also the first wells ever drilled in the Baffin Bay Basin which is similar in size to the North Sea,” he said.
“The general meeting of the shareholders will be held at Edinburgh on October 7,” the company said in a notice for the extraordinary general meeting (EGM). Cairn Energy is selling between 40 per cent and 51 per cent of its 62.38 per cent stake in Cairn India to billionaire Anil Agarwal-run Vedanta Resources group for up to $8.48 billion.