Stampede Drilling (SDI.V) on Tuesday said it has funding in hand from its customer Greenland Energy (GLND) to support a drilling program in east Greenland's Jameson Land Basin.
The funding will be used for capital upgrades to the company's rig to prepare for Arctic operations under its five-year contract, it said.
The company plans to mobilize the rig from Nisku, Alberta, in the third quarter. Demobilization funds will be held in escrow before the rig departs, providing the company with financial assurance for the demobilization and return of the rig to Nisku, it added.
The Greenland project is expected to include the initial drilling of up to two exploration wells in the Jameson Land Basin, the company said.
The drilling contract with Greenland Energy is conditional upon final Greenlandic Government approval.
"Receiving capital upfront on a program of this scale is a significant accomplishment, and one that is rarely seen in today's market," said Chief Executive Officer Lyle Whitmarsh. "It reflects the confidence and commitment Greenland Energy has in Stampede's ability to deliver, and we remain optimistic about the opportunities this frontier program represents for the Corporation and its shareholders."
The company's shares were last seen down C$0.015, or 6.2%, to C$0.225 on the TSX Venture Exchange.
Price: $0.23, Change: $-0.02, Percent Change: -6.25%