Greenland Gas & Oil (GGO) is within months of starting a farm-out partner for its onshore acreage in the eponymous Arctic territory as it eyes drilling work in either 2018 or 2019, writes Eoin O'Cinneide.

The privately-held player is currently integrating results from a recently completely full tensor gravimetric (FTG) survey and legacy seismic over its Jameson Land peninsula acreage in south-east Greenland, which is expected to beef up an already large list of identified leads and prospects.

Chief executive Mark Bilsland told Upstream the company is waiting for the results of this integration before beginning a farm-out process, which could start in two or three months’ time.

“I want to wait until we have the resources work done,” he said, adding that the company had already mapped 40 prospects or leads across five different horizons before shooting the FTG survey.

GGO holds 93.75% in licences 2015/13 and 2015/14, which it was awarded in 2015, with state player Nunaoil on a 6.25% carried interest.

“We feel that we would like to retain at least half of the licence. It would be good to get a promote if we could, and/or some sort of a contribution to past costs,” Bilsland said.

GGO is now ready to enter the second of three phases under the licence commitments. This calls for new 2D or 3D seismic, but Bilsland said it also includes the option of bringing forward drilling from the third phase, which he said the company is now starting to favour.

“We believe we would probably get more benefit out of drilling rather than more seismic, and it would certainly be more cost effective. And that is not a problem with the licence,” he said.

However, this will largely depend on what type of farm-in partner is eventually secured.

“I suspect if we were to get one of the majors interested, they don’t do much without 2D or 3D seismic anyway, so they would probably want to do more seismic. If it was a mid-cap with a similar outlook to us, I think they would probably see a way to drilling rather than seismic,” Bilsland said.

Although one third party is trying to push the company to drill in the upcoming winter season, Bilsland said: “I think that’s tough. I think it is more likely to be the winter period of 2019/2020,” meaning a start in October or November next year.

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Hunt for Greenland partner