Greenland Energy (NASDAQ: GLND) is moving forward with plans to drill in the Jameson Land Basin in East Greenland, an onshore petroleum basin that CEO Robert Price called one of the world's last largely undrilled frontier oil regions, according to an interview with Energy, Oil & Gas Magazine.
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 (ARCO) during the 1970s and 1980s. Modern reprocessing of that historical data has helped refine potential drilling targets within a geological system that Price said 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. 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.
Price said the project could play an important role in future energy security while also contributing to Greenland's long-term economic development. He drew comparisons to the impact of resource development in Norway and Denmark, noting that stakeholders increasingly view the basin's potential hydrocarbon resources as a possible catalyst for infrastructure investment, public revenue generation and broader economic growth.
However, the company faces substantial risks. The basin has never produced a commercial discovery despite decades of study dating back to the 1970s, and a 2008 USGS report stated less than a 10% chance of containing a technically recoverable hydrocarbon accumulation. The 13 billion barrel estimate is based on undiscovered accumulations with no certainty of discovery or commercial viability. Geological complexity arises from limited seismic data coverage, pervasive igneous intrusions, faulting patterns, and significant Tertiary uplift creating thermal maturity uncertainty.
Operationally, the remote Arctic location presents extreme climate conditions, harsh weather, limited daylight, no existing infrastructure, and seasonal access windows for equipment and personnel. Estimated well costs are $40 million for the first well and $20 million for subsequent wells. Drilling hazards include blowouts, equipment failures, well control events, and environmental releases. The company relies on third-party contractors and faces increasing opposition from environmental groups and institutional investors due to Arctic drilling concerns.
Regulatory and political risks are also significant. Greenland imposed a drilling moratorium in 2021, though licenses are grandfathered; future regulatory changes could jeopardize operations. Geopolitical tensions, including U.S. interest in acquiring Greenland and Greenland's internal independence movements, could affect operations. Drilling requires Environmental Impact Assessment approval and Field Activities Application approval from Greenlandic authorities. Failure to meet drilling milestones could result in loss of the company's right to earn working interests.
Financially, the company needs substantial funding beyond current resources to complete the drilling program, and there is substantial doubt about its ability to continue as a going concern without additional financing. Commodity price volatility, a long development timeline, and global energy transition risks further complicate the project's viability.
The full interview with CEO Robert Price is available in Energy, Oil & Gas Magazine. The original press release can be viewed at NewMediaWire.
