Monday, February 19, 2018

Oil Search announces K1.26bil Alaska acquisition complete

OIL Search says its acquisition of a 25.5 per cent interest in the Pikka Unit and adjacent exploration acreage, and a 37.5 per cent interest in the Horseshoe Block in the Alaska North Slope was completed last Wednesday.
The acquisition was made from privately-owned companies Armstrong Energy LLC and GMT Exploration Company LLC as announced in Nov 2017 following approval of the transaction by the Committee on Foreign Investment in the US.
The acquisition cost of US$400 million (K1.26bil).
Oil Search managing director Peter Botten said: “We are pleased to have completed our Alaska North Slope acquisition and are excited to be moving this world-class oil opportunity forward, to create value for our shareholders.”
Botten said Oil Search had conducted workshops with its Alaskan partners and had developed a considerably greater appreciation of their Nanushuk resource estimates.
“We believe that the Pikka Unit Nanushuk reservoir has material upside potential, substantially above the resource estimates we used for the acquisition,” he said.
“The results of the Putu-2 well, which is part of an active drilling programme currently undertaken by ConocoPhillips adjacent to, and on trend with, the Nanushuk field, are expected to be known in the second quarter of 2018.
“These results will be incorporated into our resource estimates via an existing data trade agreement.
“Combining the Putu well result with the 2018/19 proposed drilling programme will enable the joint venture to target a FEED decision in 2019.”

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