Oil exploration company Eykon is planning to continue their search for oil in Drekasvæðið (the Dragon Area) located in the northeast corner of Iceland’s territorial waters by the Jan Mayen Microcontinent despite a decision from a fellow exploration company to leave, reports RÚV.
Eykon CEO, Gunnlaugur Jónsson, confirmed they would continue their search for oil as they are much further along in the process than the company that returned their exploration license yesterday.
“The results for our area are promising,” said Gunnlaugur.”I would say things are looking positive because so far our research is pointing in the right direction. As this is a search for oil it’s risky and it’s necessary to perform a great deal more research before reaching any final conclusions.”
The cost of oil has dropped drastically in the past few months and a recent report by Citigroup has predicted that future oil price developments will not justify expensive deep-sea drilling in remote arctic waters like the middle of the North Atlantic. But Gunnlaugur insists that it has not put a damper on their work. “On the contrary,” said Gunnlaugur. “in the short term it’s minimised the cost of our search because the price of reflection measurements has decreased.”