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Byline: Peter Ranscombe Business Reporter

A SCANNING system developed by an Edinburgh-based technology company has been used to find oil buried beneath the American state of Oklahoma.

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Oil tycoon Jim McKenny - who set up the US operations of Caithness Petroleum before buying its shale resources - led a syndicate of investors that used the imaging technology to locate the oil and now plan to develop the site.

Adrok managing director Gordon Stove expects the US success to help his company reach its target of doubling turnover this year to GBP1 million. Investors who have backed Adrok include Lonmin chairman Sir John Craven, EADS co-chairman Manfred Bischoff and London-based corporate finance firm Barchester Partners.

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Stove said: "Six companies have already signed up to use our technology in the field. They've already tested it against known hydrocarbon and mineral deposits and are now using it for exploration work."

On average, Adrok believes it can cut the cost of drilling by about 70 per cent.

The company's technology sends radio waves and microwaves down into the earth and determines the proportion of absorbed and reflected energy. Adrok can then identify and catalogue the substances below the ground, such as oil, gas or minerals.

In total, the company thinks it can save the oil and gas sector millions of pounds by using its "virtual" drilling technique.

The technique - known as atomic dielectric resonance (ADR) scanning - was developed by Stove's father, Colin, who serves as the company's chairman and scientific director.

Adrok is the third company he has set up, having sold his previous businesses to BAE and an international drilling group.

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The ADR scanner was launched commercially in 2007 following seven years of development work.

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