RE: Director Dealing8 Jul 2024 11:33
The strategy materialised last week with the announcement of its intention to acquire White Flame Energy, owner of three granted exploration and exploitation licences on the Jameson Land peninsula in eastern Greenland ‘highly prospective for helium, white hydrogen as well as all industrial gases, natural gas and liquid hydrocarbons.’ Conditional on the approval of its shareholders – a general meeting has been convened for 10 July – JAY will take a 51pc stake in White Flame for £1,402,500, with a three year option to acquire the remaining 49pc.
Jameson, which represents the western half of the North Sea hydrocarbon basin, has been a focus of study for 50 years. Investment of some $125m by White Flame, the US Atlantic Richfield Company (ARCO) and the Danish and Greenland governments, encompassing seismic surveys, permeability, porosity and feasibility studies, indicates the asset has anomalous helium and white hydrogen occurrences, and working liquid-rich hydrocarbon reservoirs with potential resources estimated to contain in more than 2.4 to 8.1 billion barrels of oil equivalent in place. Sampling in and around the basin of six shallow samples indicates concentrations of hydrogen of between 3-9pc, and two samples taken from deeper sources of between 3-7pc hydrogen.
Jameson Land sits adjacent to the 2,816 km2 Tunu Project licensed by Canadian listed Pulsar Helium, where gas analyses from hot springs have identified helium contents up to 0.8pc not associated with hydrocarbons. Pulsar also applied for an industrial gas license over Jameson but were refused because of the pre-existence of White Flame licenses. Jameson is situated near to the Nerlerit Inaat airport serviced by planes from Greenland and Iceland, and has a shipping time to Denmark of four days, and to Virginia of nine days.
The prospect’s importance to JAY is such that the company intends to change its name, to 80 Mile Plc (AIM:80M) reflecting ‘the concept of looking into the distance or over the horizon or into the future. The Jameson Land Project has a long history of resource evaluation.’
Speaking to TMS after the announcement, JAY Non-executive Director Rod McIllree said: ‘Where we are now with the project is it’s almost drill ready on some big target potential. We’re looking for a number of things here. The headline obviously is the industrial gas: helium, hydrogen, white hydrogen, xenon. and neon.’ Subject to completion of the acquisition the next step will be to ‘undertake an option study to determine the best and most appropriate path forward in terms of drilling and development’. The project has ’no immediate requirement for expenditure’. Mr McIllree told TMS the company’s preferred option is to find a partner for the development of Jameson’s assets.
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