As of 30 July 2018, 88 Energy, and newcomer Red Emperor acquire interest in four North Slope oil & gas leases on the North Slope of Alaska. Additionally, Great Bear partner in the leases, Otto Energy, increased its working interest in the four tracts from 10.8% to 22.5%. The deal involves state oil & gas leases ADLâs 391718, 391719, 391720 and 391721 all of which are located in the highly touted Cretaceous Nanushuk Formation trend and some 5 mi (7.5 km) east of the 2017 Repsol operated Horseshoe oil discovery.  The agreement calls for Great Bear to have a 10% carried interest through the first well which must be drilled by 31 May 2019. The partners paid a USD 500,000 cash payment to Great Bear in consideration of the signed agreement and are required to pay an additional USD 500,000 upon receiving the necessary permits to drill for the first well. The partners will also need to submit a USD 3-million performance bond to the state which will be refundable upon completion of the first well.  Great Bear will have an option to acquire an additional 10% working interest prior to the initial test well by paying its pro-rata share of all costs of the initial test well or, if exercised within 6 months of completing the initial test well, by paying 200% of its pro-rata share of all costs of the initial test well.  After all the requirements have been met working interest in the blocks will be 88 Energy (operator) 36%, Red Emperor 31.5%, Otto Energy 22.5% and Great Bear 10% (carried). Should Great Bear opt to back in for the additional 10% working the partners interest will adjust proportionally.  According to Otto Energy the Nanushuk prospect has potential to hold 400 MMBO and carries a geologic success in the range of 25-35%. The cost of drilling the first well has been estimated at USD 15-million.  The four North Slope leases comprising the âWestern Blocksâ have recently been extended by three years through the stateâs one-time extension program with the term now expiring on 30 April 2021.  Red Emperor Resources NL is an Australian natural resource exploration company listed on both the Australian Securities Exchange (ASX: RMP) and Alternative Investment Market (AIM: RMP). Red Emperor has oil and gas interests on the Alaska North Slope and in South East Asia.
As of 30 July 2018, 88 Energy, and newcomer Red Emperor acquire interest in four North Slope oil & gas leases on the North Slope of Alaska. Additionally, Great Bear partner in the leases, Otto Energy, increased its working interest in the four tracts from 10.8% to 22.5%. The deal involves state oil & gas leases ADLâs 391718, 391719, 391720 and 391721 all of which are located in the highly touted Cretaceous Nanushuk Formation trend and some 5 mi (7.5 km) east of the 2017 Repsol operated Horseshoe oil discovery.