88 Energy adds 45,239 North Slope acres

Kristen Nelson

Petroleum News

88 Energy said Sept. 28 that it has executed agreements for an additional 45,239 North Slope acres, via its wholly owned subsidiary Accumulate Energy Alaska Inc.

Two parcels are involved, both adjacent to existing company acreage.

The first is an agreement with Arctic Slope Regional Corp. to lease hydrocarbon rights across 28,453 acres contiguous to the Western Fairway area of the company’s Project Icewine acreage. This leasehold is 100 percent net to Accumulate, 88 Energy said, with lease terms consistent with those of the state.

“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 88 Energy Managing Director Dave Wall.

The second agreement is with Great Bear Petroleum for a 69.1 percent working interest in 24,269 acres adjacent to and north of the Central Play Fairway at Project Icewine with 16,786 acres net to Accumulate, with consideration of a cash payment of $206,388 with $167,663 to be directed to lease rentals due by Oct. 1.

Wall said, “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.”

88 Energy said the two acquisitions increase its lease position by 45,239 net acres to 371,478 net acres across its three main project areas on the central North Slope.

- KRISTEN NELSON