As per the terms of the agreement, Cook Inlet Energy will acquire Hilcorp’s 30% interest in Sword and Sabre prospects and will add about 504 net acres to its holdings in the prospect.
The Sword and Sabre prospects are situate next to the West McArthur River Unit that has so far produced over 13 million barrels of oil.
Cook Inlet Energy CEO David Hall said, "Sword and Sabre prospects show great potential with internal company estimates up to 20 million barrels of oil and 14.3 BCF of gas possible."
Miller Energy Resources CEO Scott M Boruff said, "These agreements will add significantly to our production potential in the Cook Inlet Basin and are additional milestones in our efforts to maximize the value of our assets through strategic acquisitions."
CIE can acquire Hilcorp’s interest in the properties after it completes one commercial well in each farmout area.
The company owns 70% working interest in both leases and with the completion of the acquisition it will own 100% interest.
CIE is planning to drill wells in the properties within the next three years.
