JAMESON LAND — Greenland authorities forced Greenland Energy to postpone drilling wells in the Jameson Land region. The government stated that the necessary regulatory process cannot be completed and approvals cannot be obtained before the planned start of drilling.

Drilling could commence at the earliest in the winter of 2027, according to the government and the company. 80 Mile PLC stated that drilling at its Jameson Land project in Greenland is being pushed back to winter 2027.

The Ministry of Mineral Resources confirms that Greenland Energy does not have permission to unload anything at all in Jameson Land. Greenlandic officials expressed concern that the timetable was too tight to assess environmental and social impact.

Greenland Energy brought drilling equipment ashore in July without permission. The government issued a strong warning to the company regarding the unauthorized landing of equipment.

The warning concerned the landing of drilling equipment near Nerlerit Inaat airport. 80 Mile received a formal warning from Greenland's government over equipment stored at an airport.

Greenland Energy shares closed more than 44% lower on Wednesday. 80 Mile shares were down over 20% on Wednesday.

Greenland Energy announced plans to spend $60m raised from investors to fund drilling in exchange for a majority stake in the project. Greenland Energy is funding the costs associated with managing two exploration wells.

Kenneth Griffin bought 9% of Greenland Energy’s shares in April. Larry Swets is the chairman of Greenland Energy.

Greenland Energy was formed through a SPAC merger in March. 80 Mile runs the permitting through its wholly owned subsidiary, White Flame Energy.

80 Mile holds three licences for exploration and possible exploitation of oil in the Jameson Land Basin. The Jameson Land Basin is a roughly 2-million-acre onshore licensed area.

80 Mile holds exploration licences granted before Greenland stopped issuing them in 2021. Greenland stopped issuing new exploration licenses in 2021, citing the climate crisis.

The protected wetland in Jameson Land is home to rare birds and muskoxen. Jeff Landry, the US envoy to Greenland, predicted in May that oil production could begin within 10 months.

Jeff Landry stated that oil under Greenland could ease the energy crisis caused by the US attack on Iran. PureSource News previously reported: Greenland Energy Plans Drilling Despite No Government Permits.

What's New

Greenland Energy and 80 Mile said they had permission to lease storage space within an existing Greenland Airports storage area but were unaware that this arrangement required a separate permit from the mineral resources authority. Greenland Energy and 80 Mile issued a joint statement saying they take the warning very seriously and note it in full.

The Ministry of Mineral Resources confirms that Greenland Energy does not have permission to unload anything at all in Jameson Land. PureSource News previously reported: Greenland Energy Plans Drilling Despite No Government Permits.

80 Mile PLC stated that drilling at its Jameson Land project in Greenland is being pushed back to winter 2027. 80 Mile holds three licences for exploration and possible exploitation of oil in the Jameson Land Basin.

Greenland Energy shares closed more than 44% lower on Wednesday. PureSource News previously reported: Greenland Ice Sheet Runoff Could Weaken AMOC Strength By 20%.

How Sources Differ

Nasdaq stock market data reported that Greenland Energy shares closed more than 44% lower on Wednesday, while an SEC filing noted that Kenneth Griffin bought 9% of Greenland Energy’s shares in April. Robert Price stated that Greenland Energy remains committed to advancing its oil exploration programme responsibly and in accordance with Greenland’s regulatory process, and in full compliance with Greenlandic authorities, while Rod McIllree said that while they are disappointed that the timing of the Jameson drilling programme has been impacted, the company remains fully committed to advancing this highly prospective project.

A joint statement by Greenland Energy and 80 Mile said they had permission to lease storage space within an existing Greenland Airports storage area but were unaware that this arrangement required a separate permit from the mineral resources authority, whereas the Ministry of Mineral Resources confirms that Greenland Energy does not have permission to unload anything at all in Jameson Land. PureSource News previously reported that Greenland Energy Plans Drilling Despite No Government Permits, while a Greenland Energy press release announced plans to spend $60m raised from investors to fund drilling in exchange for a majority stake in the project.

Why It Matters

The delay impacts a project situated in the Jameson Land Basin, a roughly 2-million-acre onshore licensed area where the protected wetland is home to rare birds and muskoxen. Greenland stopped issuing new exploration licenses in 2021, citing the climate crisis, but 80 Mile holds exploration licences granted before that policy change.

Greenland Energy announced plans to spend $60m raised from investors to fund drilling in exchange for a majority stake in the project, raising questions about how the delay will impact financial obligations. The postponement until at least winter 2027 contrasts with earlier predictions by Jeff Landry, the US envoy to Greenland, who predicted in May that oil production could begin within 10 months.