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(Sharecast News) - 80 Mile said in an update on Wednesday that an independent reserves and resources evaluation had confirmed the "world-class potential" of its Jameson Land Basin project in eastern Greenland, identifying 13.03 billion barrels of gross un-risked recoverable prospective oil resources.
The AIM-traded firm said the assessment, carried out by US-based petroleum consultancy Sproule ERCE, ranked Jameson among the most prospective undrilled basins globally, identifying 58 prospects and leads across the licence area.
It said the report, prepared under the Petroleum Resources Management System (PRMS 2018), also highlighted additional upside in deeper formations, including the Permian base layer.
Based on its 30% post-earn-in interest, 80 Mile's attributable share of the resources equated to about 3.9 billion barrels on a P10 basis.
Under its joint venture with March GL Company, the US partner would fund 100% of costs for up to two exploration wells, each targeting depths of at least 3,500 metres.
In return, March GL could earn up to a 70% working interest, with 80 Mile retaining 30% through its subsidiary White Flame Energy after completion of the second well.
Drilling preparations were underway, with operations expected to begin in the second half of 2026.
Halliburton had been contracted to provide drilling services and logistics, while IPT Well Solutions would act as project manager.
Shipping and logistics agreements had already been executed to mobilise a 3,500-metre-capable rig.
"I first visited Jameson Land over a decade ago and was struck by its scale and geology. It truly is a remarkable project," said executive director Roderick McIllree.
"This latest report represents a major milestone for Jameson.
"It marks the first time the project has been formally recognised within the US energy sector."
McIllree said that, based on the report and the Pelican presentation, and on a P10 basis, Jameson now ranked as the 13th largest undeveloped oil accumulation globally, as filed with the SEC.
"The significance of that cannot be overstated.
"Western Europe built its modern economies and sovereign wealth funds on North Sea oil, and it now appears that Greenland may host a comparable, and largely untapped, resource base.
"With a listed and fully funded US joint venture partner, soon to be renamed Greenland Energy Company, we are now positioned to drill and answer a question that has remained unresolved for more than 65 years."
At 1426 GMT, shares in 80 Mile were up 13.46% at 0.82p.
Reporting by Josh White for Sharecast.com.