CAIRN Energy has begun seismic testing in Greenland, one of the last frontiers of oil exploration.
After demerging its Indian business early last year, the Edinburgh-based oil and gas firm has refocused on exploration.
In January, the company was awarded the right to explore six blocks covering around 52,000sqkm of water off the west
coast of Greenland.
A spokesman told The Scotsman that it was too early for any feedback from the testing, which began this month.
Cairn was one of five companies awarded exploration rights in an area which, despite holding significant potential, has not seen any drilling since the 1970s.
Greenland awarded the blocks in an attempt to cut its dependence on Denmark, of which it is a self-governing region, in the hope that it may one day gain full independence. US majors Exxon Mobil and Chevron, along with Husky Energy of Canada, PA Resources of Sweden and DONG, Sweden's state-owned energy company, were also granted exploration rights.
Earlier this year Cairn exploration director Mike Watts said the area was a "true frontier country where oil and gas exploration is at an embryonic stage".
The foray is the latest high-risk venture for Cairn Energy, which was propelled from relative obscurity into the FTSE 100 after making huge discoveries in India, buying exploration rights overlooked by the world's major producers.
Sir Bill Gammell, Cairn's founder and chief executive, told an energy conference recently that Greenland might have similar potential. "We think Greenland has billions of barrels of potential … we think prospect sizes could be large," he said.
After floating off its Indian business, Cairn's exploration unit scoured the world for regions that have the potential for high reward, but are "unfashionable".
After buying two Aim-listed companies, Plectrum Petroleum and medOil, the company has also acquired a significant exploration in the north African nation of Tunisia.
The seismic testing is being overseen by Cairn's exploration unit, Capricorn, which is expected to be demerged from Cairn Energy as a pure exploration company in the future.
More information on the exploration is expected on 26 August, when Cairn Energy reports its interim results.
