Scotland business

Cairn Energy turns up another dry well in Greenland

Oil
Image caption Oil firms are keen to exploit Arctic oil reserves

Edinburgh explorer Cairn Energy has suffered another disappointment in Greenland as another well turns up dry.

Delta-1 is the third dry hole Cairn has drilled this year, following its three unsuccessful attempts to find oil off the coast of Greenland in 2010.

Cairn said it planned to drill at another two sites before the weather closes in.

The company's campaign to strike oil is costing it £400m this year and shares fell on early trading.

Cairn announced earlier this year it had abandoned drilling on one well and suspended work on another - the AT7-1 - in order to move its rig, the Leiv Eiriksson, to the Delta-1.

The plan is now to move the Leiv Eiriksson back to the AT7-1 and the Delta-1 will be plugged and abandoned.

Meanwhile Cairn's Ocean Rig Corcovado has started drilling the AT2-1 well.

Cairn's focus has moved to Greenland since it announced it was reducing its stake in its Indian unit.

However, its activities in Greenland have been disrupted by environmental protesters.

Cairn won a court order banning Greenpeace protesters from approaching its drilling vessels.

Shares in Cairn are down by 37% compared to their level sixth months ago.

Experts have predicted the Arctic will be the next major oil producing region, with reserves of about 20 billion barrels of oil.

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