Greenland Energy (NASDAQ: GLND) is moving forward with exploration plans in the Jameson Land Basin in East Greenland, an onshore petroleum basin that CEO Robert Price described as one of the world's last largely undrilled frontier oil regions, according to an interview with Energy, Oil & Gas Magazine.
Price said the company holds rights to up to a 70% interest in the basin and is leveraging extensive seismic data originally collected by Atlantic Richfield Company during the 1970s and 1980s. Modern reprocessing of the historical data has helped refine potential drilling targets within a geological system the company believes shares characteristics with the North Sea.
Independent evaluations have suggested upside potential of up to 13 billion barrels across the basin, with the first drill location estimated to contain approximately 2.9 billion barrels, Price said. He added that project preparations are underway, including refurbishment and transport of a drilling rig, road construction and logistics planning led by Halliburton, with initial drilling targeted for October 2026.
The announcement comes amid heightened interest in Arctic energy resources and ongoing debates about energy security and climate change. Greenland's government has imposed a moratorium on oil and gas exploration since 2021, but Greenland Energy's licenses are grandfathered, allowing the company to proceed. However, the company faces significant risks, including the basin's history of no commercial discoveries despite decades of study, and a 2008 U.S. Geological Survey report that estimated less than a 10% chance of containing a technically recoverable hydrocarbon accumulation.
According to Price, the project could play an important role in future energy security while also contributing to Greenland's long-term economic development. Drawing comparisons to the impact of resource development in Norway and Denmark, he said stakeholders increasingly view the basin's potential hydrocarbon resources as a possible catalyst for infrastructure investment, public revenue generation and broader economic growth.
The Jameson Land Basin is a remote Arctic location with extreme climate, harsh weather, limited daylight, and no existing infrastructure, posing operational challenges. Estimated well costs are $40 million for the first well and $20 million for subsequent wells, requiring substantial capital. The company has acknowledged going concern uncertainty and the need for additional financing to complete its drilling program.
Environmental groups and institutional investors have raised concerns about Arctic drilling, and the company faces regulatory and political risks, including potential changes to Greenland's drilling policies and geopolitical tensions related to U.S. interest in acquiring Greenland.
Greenland Energy's forward-looking statements caution that prospective resource estimates are based on undiscovered accumulations with no certainty of discovery or commercial viability. The company's ability to execute its exploration plans depends on permitting, financing, and successful drilling operations.
For more information, see the original release on NewMediaWire.
