Deals struck on Sword, Sabre prospects

Cook Inlet Energy LLC says it has signed deals to acquire Hilcorp Alaska LLC’s 30 percent interest in two leases covering the Sword and Sabre prospects on the inlet’s west side.

The companies executed two “farmout agreements” on Sept. 20, said a press release from Miller Energy Resources Inc., the Tennessee parent of Anchorage-based Cook Inlet Energy.

The two prospects are adjacent to the West McArthur River unit, which operator Cook Inlet Energy says has produced more than 13 million barrels of oil to date.

Cook Inlet Energy, which held a 70 percent working interest in both leases, “will earn Hilcorp’s interest upon completion of one commercial well in each farmout area,” the press release said.

Cook Inlet Energy said it anticipates drilling the wells within the next three years, ultimately gaining 100 percent working interest and full control over both prospects.

“Sword and Sabre prospects show great potential,” said Cook Inlet Energy chief executive David Hall, citing internal company estimates of up to 20 million barrels of oil and 14.3 billion cubic feet of natural gas.

—Wesley Loy