A Texas-based oil and gas company with ties to Donald Trump has postponed its drilling plans in Greenland, following a stern warning from the island's government to its joint venture partner over the unauthorized transport of drilling equipment ashore.

Nasdaq-listed exploration firm Greenland Energy announced on Wednesday that it is now targeting the winter of 2027 to secure all necessary permits for oil and gas exploration in the Jameson Land Basin on Greenland's east coast, delaying its original drilling schedule. The project's joint venture partner, London-listed 80 Mile, confirmed the postponement after consulting with Greenlandic regulators.

Greenland Energy CEO Robert Price stated in a release, "Operating in the Arctic requires patience, flexibility, and a long-term perspective. We will use this window to refine our plans and deepen engagement with local communities, strategic partners, and authorities." The exploration license is held by 80 Mile through its wholly-owned subsidiary, White Flame Energy, which handles the permitting process. While Greenland suspended new oil and gas exploration licenses in 2021 due to the escalating climate crisis, previously granted licenses remain valid.

Why the delay occurred

The project's delay comes two weeks after Greenland's government publicly reprimanded White Flame Energy for moving drilling equipment to the east coast without local approval. Both Greenland Energy and 80 Mile confirmed to CNBC that they received a formal warning letter from the Greenlandic government. The warning specifically addressed the unloading of equipment near the strategic Nerlerit Inaat Airport, a key gateway to northeastern Greenland. The companies explained that while they had a lease agreement with Greenland Airport Group to use storage space near the port, they did not realize the operation required separate approval from the Mineral Resources Authority. The Greenlandic government stated last month that White Flame Energy had not obtained the necessary statutory approval before commencing the equipment landing operation.

In a joint statement, Greenland Energy and 80 Mile said, "We take this warning very seriously and are fully aware of its contents. We will work closely with Greenlandic authorities moving forward." 80 Mile holds three exploration and potential production licenses in the Jameson Land Basin, while Greenland Energy funds two exploration wells in exchange for a stake in the project. Following the news, Greenland Energy shares closed more than 44% lower on Wednesday, while 80 Mile shares fell over 20%.

Connections to the Trump administration

The company's efforts to assess the oil and gas potential of the Jameson Land Basin coincide with renewed push by Trump to acquire Greenland. Several associates and institutions linked to Greenland Energy have deep ties to the Trump administration. Company director Carol Craig founded a defense technology firm involved in U.S. Department of Defense contracts, including work on Trump's "Golden Dome" missile defense program. The company has also signed a documentary agreement with Envoy Media, founded by "Dr. Phil" McGraw, who attended Trump campaign rallies in 2024 and served on the President's Religious Freedom Commission. Entrepreneur Larry Switz, Chairman of Greenland Energy, has been reported by media as having close ties to the Trump administration. The Guardian reported that during a June meeting on the Jameson Land Basin project, CEO Price was asked if Switz had connections to Trump, to which he replied, "None that I know of."

Potential of the Jameson Land Basin

Greenland Energy, which went public in March via a SPAC merger, stated its core goal is to unlock the frontier oil and gas potential of the Jameson Land Basin, which covers approximately 2 million acres of onshore licensed area. The company describes the basin as one of the last remaining large, undrilled prospective areas globally, with a geological formation similar to the North Sea oil and gas belt and a resource scale comparable to major global oil-producing regions. Lewis Lawrence, Senior Analyst for European Upstream Oil and Gas at Wood Mackenzie, commented that the area has clear resource potential and a geological structure similar to the central Norwegian continental shelf, a well-known hydrocarbon-rich region. However, he added that historically, several companies have attempted to drill in Greenland's promising blocks without making any commercial discoveries.