Red Emperor and 88 Energy are in the process of acquiring 67.5% WI from Great Bear in four contiguous North Slope leases, ADLs 391718, 391719, 319720 and 391721, known as the 'Western Blocks', according to reports in late June 2018. This contiguous acreage is the site of significantly large oil prospect, with a gross best estimate prospective resource volume of 400 MMbbls and a geological chance of success in the range of 25-30%. In consideration for acquiring the leases, Red Emperor and 88 Energy will provide a performance bond to the State of Alaska of US$ 3 million by 31 July 2018 and drill an exploration well in the Western Blocks by 31 May 2019. The drilling target is situated immediately adjacent to and a direct analogue of the Horseshoe-1/1A oil well, drilled by the Repsol-led joint venture in 2017. Final definitive agreements are expected to be completed within 30 days. Following completion of the transaction, equity in ADLs 391718, 391719, 319720 and 391721 will be shared with Great Bear Petroleum (10% WI), Red Emperor (31.5%), Otto Energy (22.5%) and 88 Energy (36%).
Red Emperor and 88 Energy are in the process of acquiring 67,5% WI from Great Bear in four contiguous North Slope leases, ADLs 391718, 391719, 319720 and 391721.