Nov. 8 (Bloomberg) -- Cairn Energy Plc, the Scottish oil company exploring in Greenland, discovered traces of oil and gas at an offshore well.
The AT7-1 well in the Atammik block found about 50 meters (164 feet) of “reservoir quality sands,” Edinburgh-based Cairn said today in a statement. “Mud losses and poor hole conditions have hampered the full evaluation,” it said.
“The news on the AT7-1 well is clearly encouraging and the most positive well result to date,” Richard Rose, an oil analyst at Oriel Securities Ltd., wrote in a note.
Cairn plans to drill five wells this year off Greenland, of which the AT7-1 and AT2-1 are the last. So far, no discoveries have been made after the company spent about $573 million as of the end of September.
The AT2-1 well had “minor hydrocarbon shows” after reaching its target depth, the company said today.
Cairn rose 0.3 percent to 289 pence as of the close in London. It gained as much as 5.2 percent earlier in the day.
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