425: Pelican SPAC Merges to Form Greenland Energy Co.

Pelican Acquisition Corporation announces a business combination with Greenland Exploration and March GL Company to form Greenland Energy Company, targeting a supergiant oil resource in Greenland.

Summary

• Pelican Acquisition Corporation, Greenland Exploration Limited, and March GL Company will merge to form Greenland Energy Company, a new public entity.
• The combined company will focus on developing the Jameson Land Basin in Greenland, holding exclusive licenses for over 2 million acres.
• An independent engineering report by Sproule-ERCE, dated September 1, 2025, estimates 13+ billion barrels of gross oil (P10) and 9.1 billion barrels of net oil (P10) in the basin.
• Company estimates project peak daily production could reach 1.5-2.0+ million barrels per day.
• March GL will fund 100% of initial drilling, committing $40 million for the first well and $20 million for the second well, in exchange for earning up to a 70% interest in the basin.
• Over $280 million has already been invested in the project, making it drill-ready with significant infrastructure and data.
• The transaction values March GL shareholders at $200 million (20 million shares) and Greenland Exploration shareholders at $15 million (1.5 million shares).
• Pro forma equity value is estimated at $336.7 million, with an enterprise value of $260.4 million, assuming no redemptions and a $10.00 share price.

Sentiment

Score: 8

Explanation: The filing outlines a highly ambitious and potentially transformative business combination targeting a supergiant oil field with substantial estimated reserves and production potential. The strategic funding commitment from March GL and the historical context of ARCO's prior interest add credibility. However, it's a forward-looking statement with inherent risks, and actual drilling results are yet to be seen. The low estimated break-even cost is a strong positive.

Positives

• Formation of Greenland Energy Company through a strategic business combination, creating a new public entity focused on a high-potential energy asset.
• Exclusive licenses for over 2 million acres in the Jameson Land Basin, identified as a potential supergiant hydrocarbon resource.
• Independent engineering report estimates substantial oil reserves: 13+ billion barrels gross oil (P10) and 9.1 billion barrels net oil (P10).
• High projected peak daily production of 1.5-2.0+ million barrels per day, indicating significant future revenue potential.
• March GL's commitment to fully fund initial drilling ($40 million for the first well, $20 million for the second well) demonstrates strong partner investment and de-risks early exploration.
• The project is 'drill-ready' with over $280 million already invested in infrastructure, seismic data, and logistics.
• Potential for competitive break-even costs ($25+ per barrel) due to modern technology and supergiant scale, significantly lower than US shale averages ($61-$70/bbl).
• The project offers potential for enhanced energy security and independence for the US and Europe by diversifying global oil supply.
• Historical context of ARCO identifying Jameson Land Basin as a top prospect before relinquishing it due to external macroeconomic factors, not resource potential, adds credibility to its prospectivity.

Risks

• The timing to complete the Business Combination is subject to Pelican's business combination deadline, including the potential need for and failure to obtain extensions.
• The occurrence of any event, change, or circumstances that could lead to the termination of definitive agreements related to the Business Combination.
• The outcome of any legal, regulatory, or governmental proceedings, investigations, or inquiries that may be instituted against Pelican, Greenland, March GL, or PubCo.
• The inability to complete the Business Combination due to the failure to obtain approval of Pelican's shareholders or other interested persons.
• The success in retaining or recruiting officers, key employees, or directors for the combined entity 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.
• Unexpected costs related to the Business Combination.
• The amount of redemptions by Pelican public shareholders being greater than expected, which could reduce available cash.
• 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 inherent in large-scale oil and gas exploration and production.
• 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.
• Projections and estimates are inherently uncertain and not audited, and actual results may differ materially from those presented.

Future Outlook

The newly formed Greenland Energy Company anticipates significant future growth by exploring and developing the supergiant Jameson Land Basin. Projections indicate potential for over 13 billion barrels of gross oil and peak daily production exceeding 1.5 million barrels. The company expects to achieve competitive break-even costs of $25+ per barrel, positioning it as a low-cost producer. Initial drilling operations are planned for Summer 2026, following equipment mobilization in late 2025 and early 2026. The company also expects to complete the business combination and re-domestication to Texas, with its common stock listed on a national securities exchange.

Management Comments

• The Company estimates the Jameson Land Basin may have significantly more barrels of oil with further evaluation of the deeper horizons, more densely conducted seismic surveys, and evaluation of unconventional resources.
• The deal is structured to incentivize rapid and thorough exploration of one of Greenland's largest undeveloped energy assets.
• Modern technology and supergiant scale economics of Jameson Land Basin may achieve competitive break-even in the $25+ per-barrel range.

Industry Context

This announcement positions Greenland Energy Company at the forefront of Arctic energy exploration, a region estimated by the USGS to hold significant undiscovered natural gas (30%) and oil (13%) resources. The project leverages historical data from ARCO, which once identified Jameson Land Basin as a top prospect, suggesting a high-potential, yet previously undeveloped, asset. The focus on a 'supergiant' field with potentially low break-even costs ($25+ per barrel) contrasts sharply with the higher costs of many existing US shale operations ($61-$70/bbl), indicating a strategic move towards large-scale, cost-efficient production. The comparison to Norway and Denmark's successful energy industries highlights the potential for significant national economic benefits and energy independence from such large-scale hydrocarbon developments.

Comparison to Industry Standards

• The estimated 13+ billion barrels of gross oil (P10) in Jameson Land Basin positions it among the world's largest oil fields, comparable to historical giants like Saudi Arabia's Ghawar Field (88+ billion barrels), Kuwait's Burgan Field (66+ billion barrels), and Venezuela's Bolivar Coastal Field (30+ billion barrels), though these are significantly depleted.
• Projected peak daily production of 1.5-2.0+ million barrels per day is on par with the historical peak production of Prudhoe Bay (1.5 million BOE/day) and current production levels of major global fields like Saudi Arabia's Ghawar (3.8 million bbl/day) and Kuwait's Burgan (1.7 million bbl/day).
• The estimated break-even cost of $25+ per barrel for Jameson Land Basin oil, leveraging modern arctic supply chains and technology, is highly competitive. This compares favorably to the $5+ per barrel break-even for Prudhoe Bay in the 1970s (with older technology) and is significantly lower than the average US shale break-even of $61-$70 per barrel.
• The geological characteristics of Jameson Land Basin are compared to successful hydrocarbon plays in Mid Norway and the Barents Sea, including fields like Goliath, Johan Castberg, Skalle, Heidrun, Skuld, and Strathmore, suggesting similar prospectivity.

Corporate Governance

Related Party Transactions

• The business combination involves the merger of Pelican Acquisition Corporation (SPAC), Greenland Exploration Limited, and March GL Company, with shares issued to existing March GL and Greenland shareholders as consideration.
• Pelican's sponsor shareholders will hold 7.1% of the combined entity's total shares outstanding post-merger, assuming no redemptions.

Stakeholder Impact

• **Shareholders (Pelican):** Will receive shares in the new Greenland Energy Company, subject to redemptions, with potential for significant upside if the Jameson Land Basin project is successful.
• **Shareholders (March GL & Greenland Exploration):** Will become significant shareholders in the new public entity, monetizing their existing interests in the Jameson Land Basin project.
• **Employees:** The success of the business combination and subsequent exploration could lead to job creation in Greenland and for the combined entity, with housing for 40+ workers already planned for the project site.
• **Greenland Government/Economy:** The development of the Jameson Land Basin could provide substantial revenue and economic benefits to Greenland, potentially mirroring the success of Norway's and Denmark's energy industries.
• **Global Energy Market:** The potential for a new supergiant oil field could contribute significantly to global energy supply and security, offering a lower-cost alternative to existing sources.

Next Steps

• Pelican intends to file a registration statement on Form S-4 with the SEC, including a preliminary proxy statement/prospectus.
• Pelican will mail the definitive proxy statement/prospectus to shareholders for voting on the Business Combination.
• Pelican will re-domesticate to Texas from the Cayman Islands prior to closing the transaction.
• Equipment for road and pad building is en route and expected to be in place by Q1 2026 to begin construction of a 3-mile road to OPW 1.
• M/V Nordika Desgagnés is expected to sail for Jameson Land in Summer 2026 with the drilling rig and equipment.
• The first well is expected to be drilled in Summer 2026.
• Continued work with Greenland MLSA for timing of permits for drilling operations.

Key Dates

Recommendation

The proposed business combination targets a truly world-class, supergiant oil resource in Greenland's Jameson Land Basin, with independent estimates of over 13 billion barrels of gross oil and potential peak production of 1.5-2.0+ million barrels per day. The project is already 'drill-ready' with over $280 million invested, and a key partner, March GL, is fully funding the initial $60 million drilling program. The estimated break-even cost of $25+ per barrel is exceptionally low compared to industry averages, suggesting high profitability potential. While exploration carries inherent risks, the scale of the opportunity, the advanced stage of preparation, and the strategic funding structure make this a compelling investment. The historical context of ARCO's prior interest further underscores the basin's prospectivity. This filing presents a rare opportunity to invest in a potentially transformative energy asset.

Keywords

Greenland Energy Company, Pelican Acquisition Corporation, March GL Company, Greenland Exploration Limited, Jameson Land Basin, Oil and Gas Exploration, Hydrocarbon Resources, SPAC Merger, Energy Security, Arctic Exploration, Oil Reserves, Sproule-ERCE, Prudhoe Bay, Form S-4, SEC Filing