RE: Tomorrow17 Mar 2026 18:53
Key Points from the StoryTrading Interview
Asset Value & History: Greenland Energy Company holds licenses for a massive oil prospect in Greenland, originally identified by ARCO (once the sixth largest oil and gas company globally) in the 1970s-90s. ARCO invested approximately \$275 million in infrastructure and seismic data, but never drilled due to unfavorable royalty terms and macroeconomic factors.
Current Licensing Terms: The Greenland government now controls mineral rights. Greenland Energy negotiated a net profits royalty agreement, capping royalties to Greenland at 15% of net profits—a significant reduction from prior arrangements that could have claimed up to 40% of oil output. No upfront payment was required; instead, commitments to work programs and seismic improvements were made.
Project Scope & Timeline: The licensed area covers approximately two million acres, entirely onshore. The company plans to drill two wells starting in September, with completion expected by year-end. The first well will cost about \$40 million, and the second \$20 million, largely due to mobilization and lack of existing infrastructure.
Operational Partners: Halliburton is managing the project logistics and drilling services, Stampede Drilling (Calgary) will provide the drilling rigs, and Desgagnés will handle Arctic shipping logistics. IPT, a consulting firm with seventy petroleum engineers, is also involved.
Potential Oil Reserves: Independent engineers (Sproule) estimate an upside potential of 13 billion barrels of recoverable oil, based on reprocessed ARCO seismic data. At current prices, this could represent about a trillion dollars worth of oil, making the discovery potentially world-class.
Economic Impact: Success could transform Greenland’s economy, much like the Prudhoe Bay discovery did for Alaska. The royalty structure and exclusivity of the licenses (the company controls the entire basin) are highly favorable.
SPAC Structure & Capital: Pelican Acquisition Corp has about \$86 million in its trust account, with the final amount available depending on shareholder redemptions. The post-merger company is valued above \$200 million, but actual capital will be contingent on the redemption rate.
Drilling Timeline: Road-building equipment will arrive in late July, and the main vessel with drilling equipment will leave Montreal in September, with drilling expected to begin around October 1. Each well will take approximately thirty days to drill, given the unique geological evaluation needed.
Production & Development: If oil is discovered, production will not be immediate. Further development and likely partnerships with major oil companies will be required to fully exploit the basin.
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