Oil Search Ltd.’s acquisition on Alaska’s North Slope was completed on Feb. 14 following approval of the deal by the US Committee on Foreign Investment.
The acquisition involves a 25.5% interest in the Pikka Unit and adjacent exploration acreage that straddles the north Alaskan coast about 100 km west of Prudhoe Bay and a 37.5% interest in the Horseshoe Block about 20 km southwest of Pikka Block from privately owned companies Armstrong Energy LLC and GMT Exploration Co. LLC.
Since the announcement of the deal last November, Oil Search, which is based in Sydney and Port Moresby, has been busy workshopping with its Alaskan partners and has concluded that the Pikka Unit Nanushuk reservoir has material upside potential containing more than the resource estimates used for the acquisition.
Oil Search Managing Director Peter Botten said the results of the Putu-2 well being drilled by ConocoPhillips adjacent to, and on trend with Nanushuk field, should be known before midyear. The results will be incorporated into Oil Search’s resource estimates via an existing data trade agreement.
Botten said Oil Search expects to assume operatorship of its areas next month. He added that combining the Putu-2 results with the proposed drilling program for 2018-19 will enable the JV to plan a front-end engineering and design decision for 2019.
The company has already started assembling an experienced operational, subsurface, and development team that will be largely based in Anchorage. Oil Search also is developing alliance-style relationships with preferred third-party contractors with expertise in drilling, technology, and development.
Interests in the Pikka Unit are Oil Search 25.5%, Armstrong 19.125%, GMT 6.375%, and Repsol 49%. Interests in adjacent exploration areas is Oil Search 25.5%, Armstrong 37.125%, GMT 12.375%, and Repsol 25%. Interests in the Horseshoe Block are Oil Search 37.5%, Armstrong 28.125%, GMT 9.375%, and Repsol 25%.
