Repsol and Armstrong (70 &148 LLC 75 percent and GMT Exploration Co. LLC 25 percent) said this morning that they have reached an agreement to strategically realign interests in their Alaska North Slope exploration and development acreage
The companies said the confidential agreement includes a combination of cash, operational control, drilling commitments and contractual adjustments for monetary considerations in excess of $800 million.
As part of the agreement, the previously planned 2015-16 winter appraisal drilling campaign has been deferred.
Armstrong is acquiring an additional 15 percent working interest, adding to its existing 30 percent interest, in the initial development area near the Colville River Delta. Armstrong has the option of adding an additional 6 percent and assuming operatorship in the development area.
Armstrong also acquired a 45 percent working interest in addition to its existing 30 percent interest and operatorship in some 750,000 acres of jointly owned exploratory acreage.
After exercising its 6 percent option, Armstrong would own 51 percent and Repsol 49 percent in the development area and Armstrong 75 percent and Repsol 25 percent in the exploration area.
The companies said permitting work is underway for a three-pad development, with field production rates estimated to be on the order of 120,000 barrels of oil per day.
- Petroleum News
See story in Oct. 18 issue, available online Friday, Oct. 16, at www.PetroleumNews.com