Oil Search Limited has completed its acquisition of interests in two privately owned areas in the Alaskan North Slope.
In a statement released on the Port Moresby Stock Exchange, the company announced it has completed its acquisition of a 25.5 percent interest in the Pikka Unit and adjacent exploration acreage and a 37.5 percent interest in the Horseshoe Block in the Alaska North Slope.
Both interests were acquired from privately-owned companies Armstrong Energy LLC and GMT Exploration Company LLC, and was completed on 14 February 2018.
The acquisition cost of US$400 million was paid from the Company’s existing cash balances.
Oil Search’s managing director Peter Botten said the company is excited to be moving the world class oil opportunity forward and create value for shareholders.
“We expect to assume operatorship of the Alaskan assets in March 2018. We have already commenced building an experienced operational, subsurface and development team with considerable North Slope expertise, which will be based largely in Anchorage to ensure that the disciplines are fully integrated.
“We have been delighted with the quality and strong level of interest from highly experienced personnel looking to join us.
“The team, which is expected to be in place within the next six months, ahead of the 2018/19 drilling season, will also be complemented with experienced personnel from our joint venture partners. In addition, we are developing alliance-style relationships with preferred third party contractors, to contribute additional capability in drilling, technology and development,” continued Botten.
“Since the acquisition was announced in November 2017, discussions have also been held with Government officials and indigenous landowner groups, as well as with nearby operators.
“We have been extremely encouraged by these exchanges and the opportunity to add material value to shareholders through developing these assets in a cooperative manner.”