Edinburgh-based Cairn Energy has said it may have found oil in the untapped waters of western Greenland.
Cairn, which is the only firm so far to have been allowed to drill for oil off Greenland, said that it has found gas in thin sands in the Baffin Bay basin, which could be a sign of oil. The area lies around 400 kilometres north of the Arctic Circle.
The company said it is still too early to gauge the significance of the find, as the well has not yet been drilled to its total depth.