British drilling firm Cairn Energy has seen its share prices increase after finally finding evidence of oil in one of its controversial Greenland wells.
After abandoning three dry exploration stations earlier in the year, shares in the company went up 5.2 percent following the announcement that minor hydrocarbon shows had been found at their AT7-1 drilling site.
“The news on the AT7-1 well is clearly encouraging and the most positive well result to date (even if it does not turn out to be a discovery) having encountered thick, good quality reservoir sands for the first time,” Richard Rose, analyst at Oriel Securities, told Reuters.
Cairn also said it found similar indications of oil and gas at another of its wells, adding that it will continue exploration in both until the end of this month.
The Edinburgh-based firm reduced its stake in India this year to concentrate on the Arctic region. Cairn’s activities have not been received well by environmental groups, however, who say an oil spill in the area would be devastating for the pristine and previously untouched region.
Drilling schedules have been disrupted on several occasions this year, mainly by Greenpeace which has now been given a court order to stay away from the Greenland platforms.