88 Energy secures another 45,000 acres on North Slope of Alaska

The AIM-traded firm said that, via its wholly owned subsidiary Accumulate Energy Alaska, it entered into an agreement with Arctic Slope Regional Corporation to lease the hydrocarbon rights across 28,453 acres contiguous with the Western Fairway area of its current Project Icewine acreage.

It said the ASRC lease terms were consistent with those recently awarded by the State of Alaska, post the December 2017 Licensing Round.

Accumulate also entered into an agreement with Great Bear Petroleum to acquire a 69.1% working interest in 24,269 acres adjacent to, and north of, the Central Play Fairway at Project Icewine.

Consideration for the leases was a cash payment of $0.21m, of which $0.17m would be directed to lease rentals due by 1 October.

The two acquisitions increased 88 Energy's lease position by 45,239 net acres to 371,478 net acres across its three main project areas on the Central North Slope of Alaska.

“The agreement with ASRC in relation to the western leases is significant as they are partly covered by several prospects that are in our current conventional farm-out package,” said managing director Dave Wall.

“We would like to thank ASRC for the opportunity to partner with them in this area.

“Additionally, the Central Fairway acquisition has delivered additional acres close to the road and pipeline that are considered prospective for both the HRZ and conventional plays.”