80 Mile: Proposed Transaction for Development of Jameson Concession

Rhea-AI Summary

80 Mile PLC has entered into a binding agreement with March GL Company (MGL) for the development of the Jameson industrial gas and liquids project in Greenland. Under the deal, MGL will fund 100% of costs for two stratigraphic exploration holes, potentially earning up to a 70% interest in the project through a two-stage structure. MGL will earn 50% after the first hole and an additional 20% upon completing the second hole. The Jameson licenses cover 8,429 km² of onshore territory and will evaluate the presence of hydrogen, helium, and other industrial gases. MGL will pay 80 Mile $500,000 upon final documentation, with operations set to commence by summer 2026. The project leverages off $125 million of historical exploration work by ARCO between 1970-1990, with the basin being compared to major producing regions like Alaska's Prudhoe Bay Oil Field.

Positive

• MGL to fund 100% of exploration costs while 80 Mile maintains 30% free carry interest
• Immediate $500,000 cash payment upon final documentation
• Partnership with experienced contractors including Halliburton for logistics planning
• Project area has already received $125M in historical investment and research
• Large-scale project covering 8,429 km² with multiple potential gas and hydrocarbon targets
• Existing infrastructure including Constable Point Airfield reduces development costs

Negative

• Significant dilution of ownership stake from 100% to 30% through earn-in agreement
• Project success dependent on regulatory approvals from Greenland government
• Operations not starting until summer 2026, indicating long timeline to potential revenue
• Greenland's 2021 cease on new hydrocarbon exploration licenses shows challenging regulatory environment

LONDON, May 12, 2025 /PRNewswire/ -- 80 Mile PLC ('80 Mile' or the 'Company'), the AIM (80M.AIM), FSE listed and US OTC traded (BLLYF.OTC) , exploration and development company with mineral and energy projects in Greenland and a biofuels plant in Italy, is pleased to announce it has entered into a binding heads of terms agreement ("HOT") with March GL Company ("MGL"), a private Texas Corporation, whereby MGL will fund stratigraphic research drilling at the Jameson industrial gas and liquids rich project in Greenland ("Jameson").

Under the terms of the agreement, MGL will fund 100% of the costs associated with two stratigraphic exploration holes designed to delineate the sedimentary structure and energy potential of the Jameson Basin. In return, and subject to regulatory approval, MGL can earn up to a 70% interest in the project through a two-stage earn-in structure:

• MGL will earn an initial 50% interest upon completion of the first hole drilled ("Project 1") to define the basins technical specifications.
• An additional 20% interest upon successful completion of a second test hole ("Project 2"), at MGL's discretion, within an agreed timeframe.
• March has contracted Halliburton to support logistics planning and to secure other necessary services for Jameson;
• 80 Mile is free carried until the end of Project 2 for 30% of Jameson.

MGL will also pay 80 Mile US$500,000 upon execution of final documentation expected in the coming weeks

The initial holes will evaluate:

1. The presence and concentration of naturally occurring gases included hydrogen, helium, and associated industrial gases;
2. The structure and thermal characteristics of the basin; and
3. Occurrences of natural gas and liquid condensate estimated by ARCO and other independent groups to be multi billion equivalent barrel potential.

The Jameson licenses cover 8,429 km² of onshore North Atlantic stratigraphy, situated in a post-rift setting analogous to the western margin of the North Sea. The area is considered highly prospective for multiple gas types and liquid hydrocarbon systems. Notably, Canadian-listed Pulsar Helium is also active in the surrounding regions.

Eric Sondergaard, Managing Director of 80 Mile, commented:

"Energy is fundamental to economic growth and national development. The identification of a potential energy resource at Jameson – including industrial gases, natural gases, and liquid hydrocarbons – could deliver long-term strategic and economic benefits to Greenland if responsibly advanced.

"As part of a broader Arctic and North Atlantic energy corridor, Jameson has the potential to attract a broader range of funding sources and long-term investment into Greenland.

"By partnering with experienced technical consultants, globally experienced drilling contractors, and internationally recognised logistics providers, we are ensuring a well-executed and environmentally responsible assessment of Jameson's energy potential.

"Jameson is one of the largest undrilled onshore basins of its kind. Its prospectivity for industrial gases and energy by-products has long been recognised, and our positioning into the industrial gas sector is now translating into tangible work on the ground. All activity is being undertaken under Greenlandic regulatory oversight. Projects like Jameson, when developed responsibly, can help unlock new domestic revenue streams that contribute to Greenland's economic self-reliance." 

Transaction Overview

• March GL will fund 100% of all costs and expenses related to the drilling of the first of two exploration wells at the Jameson Project, with operations to commence no later than summer 2026.
• March GL will be appointed Field Operations Manager for Project 1 and, subject to its successful completion, for Project 2. In this capacity, March GL will be responsible for entering into third-party agreements and covering associated costs, including:
  - MGL has contracted Halliburton to support the initial logistics planning and is working with Halliburton to secure services for the Project;
  - Transport of equipment owned by 80 Mile from the Dundas Ilmenite Project in Northwest Greenland to the Jameson Concession in Eastern Greenland. MGL is in    current discussions and negotiations with a shipping company;
  - Mobilisation of a drill rig capable of reaching depths of 3,500 metres to the Jameson Concession. MGL expects to finalise negotiations with a Canadian drilling company in the coming weeks;
  - MGL has contracted with IPT Well Solutions for Project Management services for drilling the exploration well for Project 1.
• In consideration, 80 Mile will assign or procure the transfer of a 50% interest in either White Flame A/S or the Jameson Concession to March GL upon the completion of Project 1.
• Upon transfer of the 50% interest, 80 Mile and March GL will negotiate the appointment of March GL as project operator, to be formalised under a joint operating agreement or equivalent.
• Following the successful completion of Project 1, 80 Mile will grant March GL an option to fund 100% of Project 2, exercisable for a period of 14 months.
• Upon completion of Project 2, 80 Mile will assign or procure the transfer of an additional 20% interest in either White Flame A/S or the Jameson Concession to March GL.
• Upon signing of the definitive agreements, and in consideration of the mutual undertakings set out in the HOT, March GL will pay 80 Mile a one-time cash payment of US$500,000.

The Proposed Transaction is subject to and conditional upon, the following:

• Receipt of all customary consents, approvals or authorisations from the Government of Greenland, in respect of the transfer or assignment of the 50% interest (upon completion of Project 1), and if applicable, the additional 20% interest (upon completion of Project 2).

INFORMATION ON THE JAMESON LAND BASIN PROJECT AND FUTURE STRATEGY

Overview

White Flame was established more than ten years ago and is the 100% owner of three large scale exploration and exploitation licences that cover 8,429 square kilometres of the Jameson Peninsular, east Greenland. White Flame won an international open tender process for two licences and subsequently applied for and was awarded the third in 2014 and 2018 respectively. Since this time, it has maintained the licences in good standing. The licence lifespans are divided into three sub periods (3 years, 3 years & 4 years for a combined total of 10 years before moving into exploitation). White Flame recently received notification of a 3-year extension to the first sub period from the Greenlandic regulators.

The licences are also exploitation licences meaning that if certain preconditions are met and a discovery is made then White Flame has the right to move into production. The licences have approximately 10 years until expiry allowing White Flame to undertake sustained, systematic and detailed work in the entire area. In total White Flame has spent approximately £4m to date on technical work and resource estimates. However, over its history the project area has had investment in excess of US$125 million all the way to full feasibility studies (in 1989 dollars, meaning far more in today's dollar terms).

Greenland's position into hydrocarbon exploration and licencing

On 24 June 2021 the Greenland Government announced it would cease issuing further hydrocarbon exploration licences. White Flame was informed at this same time that because its licences were valid and in full effect at the time of this policy change, that this new government position would not affect White Flame, its activities or its licence terms and that White Flame was free to continue to develop the Jameson Land Project peninsular as per the conditions in their existing exploration & exploitation licences.

Introduction

The Jameson Land Basin is one of, if not the last, highly prospective, yet completely undrilled basins globally, but with a clear genetic link to the North Sea as well as a scale similar to many of the world's major producing regions. This claim is not without foundation, 80 Mile will leverage its acquisition off a comprehensive body of work conducted by US Atlantic Richfield Company (ARCO) between 1970 and 1990 when around US$125m was invested (1989 US dollars) in detailed exploration and evaluation activities. ARCO's work identified multiple, very large gas and liquid hydrocarbon targets.

ARCO's data reverted to the Geological Survey of Denmark and Greenland (GEUS) upon the US major's withdrawal from Greenland in 1990 with the Danish Government continuing work on the project area until 2014 when White Flame was awarded the licences. ARCO and GEUS concluded that the Jameson Land Basin contains all the essential source, reservoir, seal and trap elements to host multiple very-large-scale natural & industrial gas reservoirs in addition to liquid-rich hydrocarbons, particularly in the central and southern central regions of the basin. This data, in addition to many subsequently commissioned independent detailed assessments and reports, indicate there are multiple multi-billion-barrel-equivalent targets within the basin. 80 Miles has identified over 50 targets. Similar sized global analogy to the Jameson gas field are;

1.  Prudhoe Bay Oil Field, (North Slope of Alaska),

• One of the largest liquids and gas fields in North America.
• Oil field is approximately 860 square kilometres (332 square miles)

The Licences

White Flame owns 100% of the project via a Greenlandic subsidiary, White Flame Energy A/S which in turn holds three exploration and exploitation licences covering 8,429 km² the entire basin on the Jameson Peninsular of East Greenland. The licences are exploration and production licences, are in good standing with the Greenland regulators and very recently had notification of extension of the first sub period for an additional 3 years. After the expiry of this new 3-year extension the licences will still have an additional 7 years before they automatically become exploitation licences, subject to completion of an EIA, SIA as well as a discovery being made.

The Company can confirm it is fully permitted, with documented confirmation that licences are in good standing and that the Company may continue to develop the large-scale gas and liquid rich projects in accordance with the terms and conditions as set out in their existing licences.

History

The Jameson Land Basin, encompassing Blocks 2015/13, 2015/14, and 2018/40, (see figure 1) has a rich history of exploration. ARCO and ENI held licenses for the area until 1990, conducting comprehensive field mapping, sampling programs, and acquiring ±1,800 line-km of 2D seismic data. ARCO's fieldwork, and subsequent studies by the GEUS have continually confirmed the substantial gas and liquid-rich hydrocarbon potential of the basin.

Jameson Land was subject to more than US$100m worth of detailed exploration expenditure between the 1970s and 1990's by ARCO and others which included the construction of what is now the Constable Point Airfield, East Greenland. 80 Mile will leverage off this historical expenditure and infrastructure to fast track the exploration of these various critical gases, including helium, all noble gases and white hydrogen, as well as by-products of other hydrocarbon elements.

ARCO exited all global exploration activities including Greenland as global commodity prices halved between 1984 and 1986. ARCO laid off over 14,000 employees during the late 1980s recession. This culminated in the relinquishment of all its exploration assets including Jameson Land. White Flame did not fully recover from this diminution and was subsequently acquired by BP in 2000 with the Jameson project being relinquished.

Work programme completed prior to withdrawal

ARCO conducted ±1,800 kilometres of 2D seismic over multiple campaigns in Jameson Land. In addition, the company invested heavily in infrastructure including an airport, warehousing and accommodation units. At the time, the structure of the Jameson Concession licences was ARCO 33%, AGIP 33% with the balance free carried by both the Danish and Greenlandic governments.

The data set that ARCO generated from its 2D seismic work reverted to GEUS upon ARCO's withdrawal from Greenland in 1990 and in 2009, White Flame purchased this data, representing over 30 years of high-quality hydrocarbon exploration. Recent legislative changes to the Greenland Mineral Resources Act in September 2014 further facilitated White Flame's 'first mover' opportunity over Jameson Land.

Industrial Gas Potential

The Jameson Land Basin's geological characteristics directly influence its potential for helium, white hydrogen, noble gases (xenon, argon, krypton), and hydrocarbons. In the Jameson Land Basin and the Liverpool Land areas of central East Greenland, helium seeps have been identified and are thought to be related to exist in large concentrations as a byproduct of the deep-seated radiogenic decay of granitic basement rocks. The land adjacent to Jameson has been licensed by Canadian listed Pulsar Helium, who also applied for an industrial gas license over Jameson Land but were refused due to the pre-existence of White Flame licenses.

SUMMARY FINDINGS:

In its core findings, ARCO ranked various formations within the Jameson Land Basin as having the highest potential for all gas types as well as liquid-rich hydrocarbon accumulations in the entire East Greenland and that Jameson represents approximately 50% part of the highly productive ±50% of the original area currently known as the Haltenbanken field, North Sea but expresses as an uplifted and onshore part of the basin. All historical assessments concluded that the entire area is extremely prospective, with all the necessary characteristics for the accumulation of gas and liquid hydrocarbons and that large-scale system present throughout the Jurassic and Triassic sedimentary pile with excellent source and seal and permeability characteristics of global scale with walk up drill targets.

Following early success of the North Sea, in the 1970's ARCO undertook early field studies into the western Atlantic margin (east Greenland) and concluded that the Jameson Land basin was highly prospective and was historically part of the oil rich North Sea basin. In the early 1980's a group comprising ARCO and ENI acquired ±1,800km of 2D seismic and conducted several further seasons of fieldwork, all of which pointed to the strong likelihood of a working gas and liquid system. Unfortunately for ARCO later that same decade market conditions forced ARCO to exit frontier exploration, including Jameson and they never recovered subsequently being taken over by BP in 1990.

The Geological survey of Greenland and Denmark also concluded that Jameson contains all the essential elements: source, reservoir, seal and trap, for a successful and potentially commercial reservoir of gases and liquids. In particular, the work conducted to date would imply that there is major source rock and reservoir potential within the basin and several drillable targets within a total stratigraphic thickness of 17,000 metres of the basin.

The basin remains undrilled despite direct field observation of source rocks and reservoir systems and the presence of multiple hydrocarbon seeps and a clear genetic linkage to the north sea Haltenbanken oil field. Consequently, this venture provides a unique and very exciting opportunity to explore and drill one of the few remaining frontier basins on the Atlantic margin.

GEUS, with the participation of approximately 20 companies in the region compiled all the pre-existing information into a comprehensive 'Geological Information System' (GIS) and importantly, collected huge volumes of additional data through fieldwork and core drilling. Over a prolonged exploration period, GEUS focused on the whole East Greenland Rift Basin, including Jameson to the south of the study area.

Greenland and Denmark Geological Survey (GEUS) continued detailed study over the area until in 2014 White Flame was awarded the licences and in 2015 commissioned the first non-government re-assessment of Jameson since the 1990's incorporating all historical information from ARCO, GEUS and others as well as the reprocessing of all 2D seismic using the latest technology. Results confirmed expectations, significant resource potential was identified.

In 2017 White Flame completed an airborne Full Tensor Gravimetric (FTG) and LiDAR survey over the entire licence area. Subsequent assessment of this data continued to reinforce the prospectivity of the licence area and resulted in the company successfully applying for further acreage to the north of the existing licences (2018/40) and thereby securing the entire onshore part of the Jameson basin. White Flame completed several years of multidisciplinary G&G work, integrating all available datasets, and building what became a comprehensive picture of the structural and sedimentary components of the Jameson Land Basin. This has been used to identify drillable structures and assign levels of geological risk.

Liquid Hydrocarbon and Natural Gas Prospectivity         

• Source Rocks: The organic-rich shales from the Upper Permian Ravnefjeld Formation and Lower Jurassic formations are key source rocks. Thermal maturation of these shales generates hydrocarbons.
• Reservoir Rocks: The Triassic and Jurassic sandstones provide excellent reservoir rocks due to their porosity and permeability, allowing hydrocarbons to accumulate.
• Seal Rocks: Marine shales and other impermeable layers act as seals, trapping hydrocarbons in the underlying reservoir rocks.
• Structural Traps: Anticlines, synclines, and fault traps within the basin create structural traps where hydrocarbons can accumulate.

The Jameson Land Basin's complex geological structure, including its crystalline basement, sedimentary layers, and extensive fault network, creates highly favorable conditions for the generation, migration, and trapping of helium, white hydrogen, noble gases, and hydrocarbons.

AIM Rule 12 Disclosure

The disposal of an interest in in either White Flame A/S or the Jameson Concession is being treated as a substantial transaction per AIM Rule 12. The value of White Flame A/S or the Jameson Concession per unaudited management accounts of the Company as at 31 March 2025 was £2.75 million and there are no profits or losses associated with the assets.

The Company intends to use the one-time cash payment of US$500,000 as general working capital.

Market Abuse Regulation (MAR) Disclosure

The information set out above is provided in accordance with the requirements of Article 19(3) of the Market Abuse Regulations (EU) No. 596/2014 which forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ('MAR').

For further information please visit http://www.80mile.com or contact:

Eric Sondergaard	80 Mile plc	enquiry@80mile.com
Ewan Leggat / Adam Cowl	SP Angel Corporate Finance LLP (Nominated Adviser and Broker)	+44 (0) 20 3470 0470
Harry Ansell / Katy Mitchell / Andrew de Andrade	Zeus Capital Limited (Joint Broker)	+44 (0) 20 3829 5000
Megan Ray / Said Izagaren	BlytheRay (Media Contact)	+44 (0) 20 7138 3204 80mile@blytheray.com

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SOURCE 80 Mile PLC

FAQ

What is the earn-in agreement between 80 Mile (BLLYF) and March GL Company?

March GL Company can earn up to 70% interest in the Jameson project by funding two exploration holes - 50% after completing the first hole and an additional 20% after the second hole, while also paying $500,000 upon final documentation.

How large is the Jameson project area in Greenland owned by 80 Mile (BLLYF)?

The Jameson licenses cover 8,429 square kilometers of onshore territory in East Greenland, representing one of the largest undrilled onshore basins of its kind.

What is the historical investment in the Jameson project area?

ARCO invested approximately $125 million (in 1989 dollars) in detailed exploration and evaluation activities between 1970 and 1990, including seismic data acquisition and infrastructure development.

When will drilling operations begin at the Jameson project?

Operations are scheduled to commence no later than summer 2026, with March GL Company responsible for managing field operations and logistics.

What resources is 80 Mile (BLLYF) exploring for in the Jameson project?

The project is exploring for multiple gas types including hydrogen, helium, other industrial gases, natural gas, and liquid hydrocarbons, with potential for multi-billion equivalent barrel resources.