Geysir/Sagex Petroleum has been evaluating the geological history of the Jan Mayen Ridge since 2001. The area is now attracting political interest following debate on the opening also of the Norwegian part of the area and the announced visit by the Minister of Petroleum and Energy, Mr. Terje Riis-Johansen, to the island of Jan Mayen.

The subject was covered on the main news, where CEO Terje Hagevang of Sagex stated that the area has geology and the potential for significant oil and gas discoveries similar to offshore Mid-Norway (external link in Norwegian): http://www1.nrk.no/nett-tv/indeks/178675

The international border was agreed in 1981, following 200 nautical miles from Iceland. Additionally, a cooperation area was agreed, where each country has the right to participate in petroleum activity with 25% within the other country's jurisdiction. The Icelandic part of the area was opened for oil exploration in 2001 when the Petroleum Law was sanctioned while the first licensing round was not started until 2009. The Norwegian part remains closed to petroleum activity. The recently completed Management Plan for the Norwegian Sea gives the option to open for exploration although this is under debate.

Key persons at Sagex, including the CEO, carried out research on the Norwegian Sea at the Universities of Oslo and Bergen in the 1970 and 80'ies, where it was well established that the area between the island of Jan Mayen and Iceland, the Jan Mayen Ridge, is a micro-continent with similar geology as offshore Mid-Norway. When the Icelandic part became available for exploration in 2001, Sagex designed and part-financed a multi-client seismic survey in cooperation with the energy authorities in Iceland and Norway which was acquired by Inseis (now part of CGGVeritas). This survey provided the first modern commercial data set. Evaluation of the seismic and other available data concludes that the conditions for finding oil and gas are present, and direct indications of petroleum are seen.

It will be challenging to carry out petroleum activity in the Jan Mayen area, not so much climatically or in terms of the 1000 – 2000m water depth, but due to the large distance of some 300km to shore. Technologies for drilling and producing petroleum at water depths of more than 3000m have long been perfected.

Sagex has, together with the Icelandic company Lindir Exploration, applied for a licence on the international border to the Norwegian jurisdiction. Award of the licence is scheduled in October 2009 following negotiation on the terms. Simultaneous activity in the Icelandic and Norwegian parts of the area is by far to be preferred with respect to resource management and safety aspects. Further, Norwegian oil companies and service suppliers would have a lot to contribute in an industry that could prove instrumental in rebuilding the Icelandic economy.