Greenland Energy Company (GLND) issued a letter to shareholders to refute a negative report from Fugazi Research, which had labeled the company "uninvestable." The company defends its position as an exploration-stage oil and gas firm, clarifies its prospective resource estimates, and addresses specific allegations regarding its cash burn, share dilution, and operational timelines.
Key Details
- Rebuttal: The company is responding to a Fugazi Research report, stating it will not entertain "inaccurate and misleading reports."
- Resource Clarification: GLND reiterated that its 13-billion-barrel figure is the high-end, unrisked prospective resource estimate from an independent firm, with the best estimate at 4.2 billion barrels. It affirmed it currently has no proved reserves.
- Financial Defense: The company claims the report misrepresented its cash burn by including ~$28 million in one-time asset and exploration costs. GLND states its actual operating cash use was $4.6 million over six months.
- Operational Update: GLND paid £500,000 to extend its right to earn up to a 70% working interest for two more years, stating it prioritizes "drilling right" over "drilling fast" to meet a deadline.