Edinburgh-based Cairn, the first company for a decade to drill for oil offshore in Greenland, said it had "early indications of a working hydrocarbon system" in Baffin Bay.

Cairn commenced drilling operations on the Alpha (Alpha-1) and the T8 (T8-1) exploration prospects in the Sigguk Block, approximately 175 km offshore Disko Island, west Greenland in July using the Stena Don, a fifth generation semi submersible and the Stena Forth, a sixth generation drillship. The Alpha and T8 exploration prospects lie in water depths of between 300 and 500 metres and have planned target depths of 4,200 m and 3,250 m respectively. The operations on both wells are currently ongoing but are reaching a significant phase. The Alpha-1 well has been sidetracked in the volcanics lying above the main target section for mechanical reasons and is currently anticipated to reach target depth in September. The T8-1 well has encountered biogenic gas with components of thermogenic gas in thin sands and is expected to reach target depth by the end of August.

The third exploration well in the current sequence will be located on the T4 Prospect approx. 150 km north west of Alpha and 150 km north of T8. The fourth well in this season's programme is dependent on the drilling schedule and is yet to be decided.

Tags: Cairn Energy PLC