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At the same time Balki and Hallvard sailed westwards, to Iceland, where they had heard that good land was available for occupation. Balki took up some land at Hrutafjord, and had his abode in two places called Balkastad. Hallvard occupied Sugandafjord and Skalavik as far as Stigi, where he lived.

Thorsteinn said that his enemies were now becoming so numerous that few would care to take him in; but told him to go to Myrar and see what he found there. So in the autumn he went to Myrar. There lived in Holm Bjorn the Hitdale Warrior, who was the son of Arngeir, the son of Bersi the Godless, the son of Balki, who was the first settler in Hrutafjord, as has already been told.

He was accompanied on these expeditions by one Balki, the son of Blaeing from Sotanes, and by Orm the Wealthy. Another comrade of theirs was named Hallvard. They had five ships, all well equipped. They plundered the Hebrides, reaching the Barra Isles, where there ruled a king named Kjarval, who also had five ships.

They carried him to a ship belonging to a man named Thrand, a son of Bjorn and brother of Eyvind the Easterner. He was fighting against King Harald, and his ship was lying on the other side of Onund's. Then there was a general flight. Thrand and the rest of the vikings escaped any way they could, and sailed away westwards. They took with them Onund and Balki and Hallvard Sugandi.