Linc sells Alaska properties

Linc Energy Ltd. has sold most of its Alaska assets to its major creditors.

In August, U.S. Bankruptcy Judge David R. Jones approved the sale of assets, including the undeveloped Umiat oil field, to Arctic Acquisition Inc. for credit bid of $80 million.

The offer was the only qualified bid received during an auction held earlier this year. The company initially submitted a stalking horse credit bid of $25 million and later asked for permission to increase the bid to $80 million, which creditors ultimately accepted. A credit bid allows creditors to bid the value of their outstanding debts with the debtor.

The U.S. subsidiaries of Linc Energy Ltd. filed for bankruptcy protection earlier this year, citing declining oil prices after years of expensive drilling programs, including an underground coal gasification pilot program in the Interior and Southcentral and approximately $120 million on a two-well appraisal program at Umiat in 2013 and 2014.

Umiat is thought to be the largest known and undeveloped oil field in Alaska. While recent operators believe they have solved the geological challenges at the field, the extreme remoteness of the field has stalled development for more than 60 years.

- ERIC LIDJI