Cairn Energy’s search for oil in the Arctic is faltering as the CEO admitted yesterday it has “yet to make a commercial discovery”.
In a statement the UK oil and gas firm said it has been forced to “plug and abandon” two wells in its billion-dollar drilling campaign off the coast of Greenland.
Simon Thomson, chief executive said: “Whilst we have yet to make a commercial discovery we remain encouraged that all of the ingredients for success are in evidence.”
However he tried to strike a more optimistic note over the prospects of other wells in the region: “Evaluation of data across Cairn’s multiple blocks is ongoing against a backdrop of active farm-out discussions for selected areas.”
Investors reacted negatively to the news, with the firm’s share price dropping 1% yesterday.
Cairn’s Arctic activity has been dogged by controversy, with Greenpeace activists mounting a protest on its drilling rig earlier this year.