Exploration off southwestern Greenland got a shot in the arm in mid-January 2008 when the Capricorn Energy Ltd. unit of Cairn Energy PLC, Edinburgh, took interests in six blocks.
The combined area covered by the six licenses exceeds 12.8 million acres, or the equivalent of 231 North Sea blocks. The blocks are in 300-1,400 m of water.
The Greenland Bureau of Minerals and Petroleum awarded Capricorn an 87.5% operated interest in the Sigguk and Eqqua blocks in the Disko West licensing round and a 92% operated interest in the Kingittoq and Saqqamuit blocks in the Open Door area. Nunaoil A/S, Greenland’s national oil company, holds the remaining interest in those four blocks.
Capricorn also acquired a 40% nonoperated interest in the Atammik and Lady Franklin blocks off West Greenland. EnCana Corp., Calgary, operates those blocks with 47.5% interest, and Nunaoil has 12.5%. EnCana has held Atammik since 2002 and Lady Franklin since 2005.
Cairn pointed out that Greenland has hosted only six offshore wells, one in 2000 and the rest in the 1970s.
The work program for Sigguk and Eqqua calls for shooting 6,000 line-km of 2D seismic in 2008-09. EnCana plans to run a seabed electromagnetic survey at Lady Franklin and Atammik in 2008-09. The Open Door blocks require 2,000 line-km of 2D seismic in 2008-09.
Meanwhile, Iceland approved its industry minister’s proposal to offer oil and gas exploration and production licenses in January 2009 in the Dreki area on Jan Mayen Ridge northeast of Iceland (OGJ, Jan. 7, 2008, Newsletter).