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Cairn strikes gas in Arctic exploration

posted 24 Aug 2010, 04:07 by David Rintoul

Edinburgh‑based oil explorer Cairn Energy today announced it had struck gas in Greenland with the first well to be drilled in the Arctic territory in a decade.

While the news could be a disappointment for investors who had hoped for an oil find, Cairn said its offshore well had not yet reached target depth, holding out the prospect that oil may yet be found.

Cairn did not say how much gas it found. Large volumes would be required to make any find economic to develop. Given Greenland's distance from a major gas market, a liquefied natural gas facility would need to be constructed, likely at a cost of billions of dollars.

Environmental group Greenpeace has said an oil strike off the coast of Greenland would be grave news, sparking an Arctic oil rush and threatening the area's fragile environment and efforts to beat climate change.

Source: Evening News