Oil Search has completed the previously announced $400m acquisition of interests in Alaska North Slope assets in the US from Armstrong Energy and GMT Exploration Company.
The closure of the transaction comes after the receipt of approval from the Committee on Foreign Investment in the US.
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The acquisition gives Oil Search a 25.5% interest in the Pikka Unit and adjacent exploration acreage, in addition to a 37.5% interest in the Horseshoe Block.
Oil Search managing director Peter Botten said: “Since the announcement of our transaction, we have conducted a number of workshops with our Alaskan partners and have 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.”
The deal was signed in November last year and complements the company’s existing gas assets in Papua New Guinea, while balancing its gas dominated portfolio.
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By GlobalDataThe acquired leases comprise around 500 million barrels in the Nanushuk and satellite oil fields.
Meanwhile, Ocean Search expects to incorporate the yet-to-be pronounced results of the Putu-2 well, which is being undertaken by ConocoPhillips adjacent to the Nanushuk field, into its resource estimates.
The company is set to assume operatorship of the assets next month.
Pursuant to the agreement, Oil Search has an option to acquire an additional 25.5% interest in the Pikka Unit and 37.5% interest in the Horseshoe Block.
The option also includes an additional 25.5% interest in the adjacent exploration acreage and 37.5% in the Hue Shale.
In case the company chooses to exercise the option, it is required to pay $450m.
