Oil And Gas Deposits In “Dragon Area” To Be Clearer Next Spring

A better idea of what kind of oil and gas deposits lie in the so-called “Dragon Area” will be clearer this coming spring.

Heiðar Guðjónsson, the managing director of Eykon Energy, told RÚV that exploration of the patch of sea in the northeast region of Iceland’s territorial waters should yield more conclusive data around March or April of next year.

He also reiterated what Eykon contended last year; namely, that the dropping price of oil has actually made exploration less costly and more attractive to investors.

In addition, Eykon plans to drill three holes into the sea floor, rather than just the one, as originally planned.

As reported, Orkustofnun, Iceland’s National Energy Authority, confirmed licenses for oil exploration in the area in 2013. At the time, oil was valued at about 100 USD per barrel – today, it has down to just under 50 USD per barrel.