Thursday 6 January 2011

Cairn stock soars on news of Greenland drilling

Cairn stock soars on news of Greenland drilling

Oil exploration company Cairn Energy saw its market value rocket this week as its shares rose on the back of news of a new drilling campaign.

Edinburgh-based Cairn announced that two rigs had been secured to drill four wells this year off Greenland.

Following the announcement, Cairn's stock closed 2.8% up at 431.6p, adding £162.4 m to the company's market value.

The two drillships that will head for Greenland are state of the art vessels. The Leiv Eiriksson, a fifth generation semi-submersible drilling rig, and the Ocean Rig Corcovado, a sixth generation drillship, are both operated by Ocean Rig.

Last month Statoil got the go=ahead to also begin drilling off Greenland, which is being seen as the next potential oil hotspot for exploration firms.

Written by

Bruna Pinhoni

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