Cairn Energy is about to embark on a major exploration programme – but has yet to decide whether Greenland will form part of it.
Chief executive Simon Thomson announced to the stock market yesterday that the firm is ready to begin drilling off Morocco.
A series of wells will be opened up to get at the four billion barrels of oil believed to lie beneath. Bosses then plan to move on to prospects of Senegal and Ireland next year.
Its operations in Greenland have been met by protests from environmentalists, including Greenpeace, concerned about the Arctic region.
The firm’s 2011 drilling campaign in the region failed to make a commercial find. And yesterday the interim management update said a decision on whether to go back or not will not be taken until the end of next year.
Mr Thomson said: “Cairn has built a strategic position along the frontier basins of the Atlantic margin, including Morocco, Senegal, Ireland, Mauritania and Greenland and is about to start a 12-month, multi-well high impact exploration programme offering shareholders exposure to material growth potential.
“Cairn continues to follow its policy of maintaining appropriate balance sheet strength as it progresses its exploration and development programmes.”
The company also announced yesterday that it would begin a share buy-back programme of up to $300m (£186m).
Elsewhere, the firm is awaiting approval for the final development plan for the multibillion-pound Kraken field in the North Sea, in which it holds a 25% stake. The statement added: “Cairn remains in a strong financial position, ready to enter an intense operational period on the exploration front, while progressing with both the Kraken and Catcher development projects which will become the funding platform of the business once on stream.”
Cairn posted pre-tax losses of £237.6million for the first half of 2013, compared with a deficit of £31.9million a year earlier.