Otto Energy has made a final payment of $7million to Great Bear Petroleum to earn entry into two area of the Alaskan North Slope acreage.
The company’s payment will see it take an 8% share and 10.8% working interest in the assets.
Otto said the decision to make the final investment follows extensive due diligence and field trips to the Alaskan North Slope by the company.
Matthew Allen, chief executive, said: “Participation in exploration and appraisal on the Alaskan North Slope presents a unique and highly prospective opportunity for Otto shareholders.
“We look forward to working with Great Bear Petroleum’s team to execute the upcoming exploration and appraisal program.”
Otto will participate in a future drilling program with a total capped exposure of $6million in up to three wells.
The company said it was not required at present to make a decision on the option to acquire an 8% interest in a further 22,804 acres, which includes the recently drilled exploration well Alkaid-1.