- Alaska’s Department of Natural Resources has signed off on the sale of Otto Energy’s (OEL) subsidiary Borealis Alaska
- Borealis holds a 10.8 per cent working interest in each of the 16 leases in the Talitha Unit in Alaska
- The subsidiary is being sold to Pantheon Resources, which has agreed in return to issue 14.2 million new LSE-listed shares to Otto
- Once the shares have been issued, Otto’s new shareholding in Pantheon will be worth around US$7.4 million (about A$9.74 million)
- Shares in OEL are up 12.5 per cent at 0.9 cents per share
Alaska authorities have signed off on the planned sale of Otto Energy’s (OEL) subsidiary Borealis Alaska.
The Department of Natural Resources has approved for Pantheon Resources to take control of the company and its Talitha Unit asset.
The OEL subsidiary holds a 10.8 per cent working interest in each of the 16 leases in the Unit in Alaska.
In exchange for Borealis, Pantheon has agreed to issue 14.2 million new shares to Otto on the London Stock Exchange (LSE).
Once the shares have been issued, Otto’s new shareholding in Pantheon will be worth around US$7.4 million (about A$9.74 million).
Meanwhile, ahead of the sale, Pantheon has provided an update on work being undertaken at the Talitha #A well. The new owner has successfully set a liner in the Kuparuk interval of the well and perforated that interval.
Pantheon is expecting well-testing operations to commence shortly, with initial phases to be completed next week.
Oil has previously been encountered in the Kuparuk Formation, which is a major regional producer on the Alaska North Slope.
“Otto congratulates Pantheon on its excellent operational performance with the Talitha #A well and its preliminary success,” Otto Executive Chairman Mike Utsler commented.
“We look forward with optimism, and as a Pantheon shareholder, to the imminent well test operations in the highly prospective Kuparuk interval,” he added.
Shares in Otto Energy are up 12.5 per cent at 0.9 cent per share at the close of trade on Thursday.