425: Pelican Acquisition Discloses Greenland Oil Prospects

Pelican Acquisition Corporation revealed a Sproule ERCE report detailing significant prospective oil resources in March GL's Greenland licenses, ahead of their merger to form Greenland Energy Company.

Summary

• Pelican Acquisition Corporation entered into a Merger Agreement on September 9, 2025, with Greenland Exploration Limited and March GL Company, forming Pelican Holdco, Inc. (PubCo), which will operate as Greenland Energy Company and list on NASDAQ under GLND.
• A Fortune article on October 22, 2025, referenced figures from a Sproule ERCE reserve report, which is now filed as Exhibit 99.1.
• The Sproule ERCE report evaluates the prospective resources of March GL's Greenland license as of September 1, 2025, confirming no proved, probable, or possible oil and gas reserves, with all estimates being prospective and highly speculative.
• March GL Company holds 2,000,315 gross acres and 1,400,220.5 net acres of undeveloped mineral leases in Greenland, with a 70% working interest in three licenses (2015/13, 2015/14, 2018/40).
• The aggregated sum of 58 identified prospects indicates gross unrisked recoverable prospective oil volumes of 1,088.7 Million Barrels (1U), 4,196.3 Million Barrels (2U), and 13,039.7 Million Barrels (3U).
• March GL plans an initial drilling program with three wells (OPW-1, OPW-6, OPW-9), with rig mobilization contracted for Q2 2026 and the first well spudding in Summer 2026.
• The first well, OPW-1, has a composite Geological Chance of Success (CoS) of 20% and a risked mean prospective oil volume of 175.5 Million Barrels.
• The second well, OPW-6, has a composite CoS of 10% and a risked mean prospective oil volume of 32.8 Million Barrels.
• The third well, OPW-9, has a composite CoS of 11% and a risked mean prospective oil volume of 111.5 Million Barrels, targeting some prospects de-risked by the first two wells.
• The Jameson Land basin is an undrilled frontier basin, and the report highlights the need for further exploration, appraisal, and evaluation to determine commercial viability.

Sentiment

Score: 6

Explanation: The filing discloses substantial prospective oil resources in a frontier basin, which is positive for long-term potential. However, the company has no proved reserves, and all estimates are highly speculative and subject to significant exploration and development risks, including those associated with an arctic environment and the ongoing business combination.

Positives

• Sproule ERCE's report identifies significant prospective oil volumes, with aggregated gross unrisked estimates ranging from 1,088.7 MMBbls (P90) to 13,039.7 MMBbls (P10) across 58 prospects.
• Four main petroleum systems with effective source-reservoir-seal assemblages are confirmed, dominating Permian and Jurassic intervals.
• The Permian carbonate (Wegener Halvo) play, coupled with overlying pyrobitumen-rich shale (Ravnefjeld), is identified as a compelling primary play.
• Three primary prospects have been identified for initial drilling, each targeting multiple formations, which lowers the exploration risk for these wells.
• The composite Geological Chance of Success (CoS) for the initial wells (20% for OPW-1, 10% for OPW-6, 11% for OPW-9) is considered very high for a frontier basin.
• Volumetric estimates at both the basin and prospect level exceed economic thresholds required to support an exploration drilling program.
• March GL has been proactive in engaging with the Greenland government regarding permits and environmental legislation for exploration and development activities.
• The company has contracted third-party service companies globally recognized as experts in arctic oil and gas development operations and logistics.

Negatives

• The company currently holds no proved, probable, or possible oil and gas reserves.
• All estimates of potential future recovery are prospective in nature and highly speculative, with no reserves attributable to undrilled acreage.
• The Jameson Land basin is an undrilled frontier basin, carrying inherent high exploration risks.
• Seismic data density is at a reconnaissance level (1,798 Km of 2D data), which limits detailed trap definition and future interpretations.
• Thermal maturity remains uncertain due to a lack of well calibration and suspected significant Tertiary uplift and erosion, potentially indicating overmature source rocks.
• Structural complexity and pervasive igneous intrusions are fundamental exploration challenges that require significant data enhancement and drilling campaigns.
• Permian formations are assessed as the highest risk due to high structural and maturity risk, with some modeling suggesting they may be more gas prone.
• Triassic and Jurassic stratigraphic trap reservoirs have a risk of seal integrity and trap definition due to widely spaced 2D seismic lines.

Risks

• The timing to complete the Business Combination by Pelican's business combination deadline, including after approval of applicable extensions and the potential failure to obtain such extension(s) of the business combination by the deadline if sought by Pelican.
• The occurrence of any event, change, or other circumstances that could give rise to the termination of the definitive agreements relating to the Business Combination.
• The outcome of any legal, regulatory, or governmental proceedings that may be instituted against Pelican, Greenland, March GL, or PubCo or any investigation or inquiry following announcement of the Business Combination.
• The inability to complete the Business Combination due to the failure to obtain approval of Pelican's shareholders or other interested persons.
• Greenland, March GL, and PubCo's success in retaining or recruiting, or changes required in its officers, key employees, or directors, following the Business Combination.
• The ability of the parties to obtain the listing of the PubCo's common stock on a national securities exchange upon the date of closing of the Business Combination.
• The risk that the Business Combination disrupts current plans and operations of Greenland or March GL.
• The ability to recognize the anticipated benefits of the Business Combination.
• The unexpected costs related to the Business Combination.
• The amount of redemptions by the Pelican public shareholders being greater than expected.
• The management and board composition of PubCo following the Business Combination.
• Limited liquidity and trading of PubCo's securities following completion of the Business Combination.
• Changes in domestic and foreign business, market, financial, political, and legal conditions, including March GL's expectations of receiving extensions on applicable licenses.
• The possibility that Pelican, Greenland, or March GL may be adversely affected by other economic, business, and/or competitive factors.
• Operational risks, particularly in the challenging arctic environment.
• Litigation and regulatory enforcement risks, including the diversion of management time and attention and additional costs.
• The risk that the consummation of the Business Combination is substantially delayed or does not occur.
• Geological uncertainties, drilling risks, commodity price volatility, and regulatory changes.
• Uncertainties in thermal maturity due to lack of well control and suspected substantial Tertiary uplift and erosion, potentially impacting hydrocarbon generation.
• Migration pathway uncertainties due to lack of well control and the effect of Tertiary volcanic intrusions.
• High structural and maturity risk for Permian formations, with some theoretical basin modeling indicating they may be more gas prone than oil prone.
• Risk of seal integrity and trap definition for Triassic and Jurassic stratigraphic trap reservoirs due to widely spaced 2D seismic lines.

Future Outlook

The combined company, Greenland Energy Company, is expected to be listed on the NASDAQ Stock Market under the ticker symbol GLND. March GL plans an initial drilling program with three wells (OPW-1, OPW-6, OPW-9) starting in Summer 2026. Future exploration will prioritize improved seismic surveys (2D/3D), geochemical analyses of source rock maturity and lateral extent, and exploration drilling targeting large carbonate build-ups and stacked sandstone units adjacent to mapped source kitchen areas to reduce risk and clarify trap/reservoir distribution.

Management Comments

• March GL Company holds a 70% working interest in its Greenland oil and gas licenses.
• March GL has been proactive with the Greenland government concerning all necessary permits and environmental legislation required to conduct both exploration and development activities.
• March GL has contracted third-party engineering firms globally recognized as experts in arctic oil and gas development operations and logistics.

Industry Context

The Jameson Land basin in Greenland is characterized as a frontier basin, meaning it has a long exploration history but no commercial discoveries to date. Previous exploration efforts, such as those by ARCO Oil and Gas Company, ceased due to factors like the sharp oil price decline of 1986. This renewed activity by March GL, supported by the business combination with Pelican Acquisition Corporation, represents a high-risk, high-reward venture into an undrilled arctic region. The project faces significant challenges common to frontier arctic exploration, including logistical complexities, environmental considerations (as highlighted by the Fortune article), and the need for substantial capital and advanced technical expertise to de-risk and potentially commercialize resources in such an environment.

Comparison to Industry Standards

• The Jameson Land basin is classified as an undrilled frontier basin, which inherently carries a higher risk profile compared to mature hydrocarbon basins with established production.
• The typical Geological Chance of Success (Pg) for individual target prospects in frontier basins is generally between 5-10%, aligning with the GCA estimates adopted by Sproule ERCE for this project.
• The composite Chance of Success (CoS) for the initial three wells (ranging from 10% to 20%) is considered 'very high for a frontier basin' by Sproule ERCE, primarily due to the strategy of targeting multiple prospective horizons with a single well, a common risk-mitigation technique in early-stage exploration.
• The Hareelv Formation (Upper Jurassic) shales are noted as comparable to the North Sea Kimmeridge Clay, a globally recognized and prolific source rock, suggesting significant hydrocarbon generation potential.
• The estimated Risk of Development (Pc) of 0.80 (80%) for a discovery exceeding 100 million barrels is a reasonable industry assumption for commercial viability, although it acknowledges the unique operational challenges and permitting requirements of an arctic environment.

Stakeholder Impact

• Shareholders face potential for significant value creation if prospective resources are commercialized, but also bear high risk due to the early exploration stage and speculative nature of the project. They will also vote on the proposed business combination.
• Employees of Pelican, Greenland, and March GL may experience changes in roles or opportunities as the companies merge to form Greenland Energy Company.
• Suppliers, particularly those with expertise in arctic drilling and logistics, stand to benefit from contracts related to the planned exploration program.
• Regulatory authorities, especially the Greenland government, will be actively involved in permitting and environmental oversight for both exploration and potential development activities.
• The broader investment community will closely monitor the progress of the business combination and the initial drilling results as indicators of the project's viability and the company's future prospects.

Next Steps

• Pelican Acquisition Corporation intends to file a registration statement on Form S-4 with the U.S. Securities and Exchange Commission (SEC).
• Pelican will mail the definitive proxy statement/prospectus relating to the Business Combination to its shareholders.
• Pelican shareholders will hold a meeting to vote on the Business Combination.
• March GL will mobilize a rig and logistics for its initial drilling program in Q2 2026.
• March GL will spud the first exploration well in Summer 2026.
• Future exploration should prioritize improved seismic surveys (2D/3D) to detail additional prospects.
• Further geochemical analyses of source rock maturity and lateral extent are needed.
• Exploration drilling will target large carbonate build-ups and stacked sandstone units adjacent to mapped source kitchen areas.

Key Dates

Recommendation

The filing details a significant business combination and the disclosure of a Sproule ERCE report outlining substantial prospective oil resources in Greenland. While the prospective volumes are large and the initial drilling program has a relatively high chance of success for a frontier basin, it is crucial to note that the company currently has no proved reserves, and all estimates are highly speculative. The project is in an early exploration stage in a challenging arctic environment, carrying significant geological, operational, and regulatory risks. An investor should hold to monitor the outcome of the business combination, the initial drilling results, and further de-risking of the project before making a more definitive investment decision.

Keywords

Greenland Energy Company, Pelican Acquisition Corporation, March GL Company, Greenland Exploration Limited, Sproule ERCE, Prospective Resources, Oil Exploration, Jameson Land Basin, Business Combination, SPAC Merger, Oil & Gas, Arctic Drilling, GLND, SEC Filing, Form 425, Exhibit 99.1