CAIRN Energy has been hit by another blow after it announced that it had failed to find oil in two more wells in Greenland.
The company’s shares fell yesterday, after the failure followed the closure of three other wells earlier in the year, leaving its $600m exploration project in trouble. Edinburgh-based Cairn launched its exploration projects in Greenland four years ago but has failed to make significant finds.
Shares in the company have fallen by around 40 per cent since the beginning of the year.
The Atammik Block,, 202km offshore from the country’s capital Nuuk, is the last of the wells to close after hopes of a commercially viable find were dashed
Chief executive Simon Thomson (pictured) said the company would continue to drill in the area next year. He said: “Whilst we have yet to make a commercial discovery we remain encouraged that all of the ingredients for success are in evidence.”
The company said it may seek investment partners for a renewal of the drilling campaign next year. Cairn shut its Delta-1 and Gamma-1 wells in September while its first well to be drilled this year, LF7-1, was plugged in August. The company has shifted its focus to Greenland while its more traditional territory is India.
Analysts at Evolution said the shares look “mired” for the time being.