The Oil Search Limited (ASX: OSH) share price increased more than 3% today after making an Alaskan-related announcement.
Oil Search announced that after the completion of comprehensive pre-FEED studies (which stands for Front-End Engineering and Design), the Oil Search Board has approved entry into the FEED phase of the Pikka Unit Development on the North Slope of Alaska, subject to joint venture approval and finalisation of several third-party agreements which are expected in early 2020.
Resource specialist Ryder Scott's certified gross 1C, 2C and 3C contingent recoverable oil resources are 513 million, 728 million and 907 million barrels respectively. The 728 million barrels number represents a 46% increase on Oil Search's gross 2C contingent acquisition case of 500 million barrels, a major upgrade.
The Ryder Scott estimates only include resources that will be developed by the present Pikka unit development plan and excludes several reservoirs within the Pikka Unit, field extensions outside the Unit and other discovered resources that may be developed.
The local government North Slope Borough Assembly has approved Oil Search's Master Plan for the Pikka Development Project and re-zoning, which allows the commencement of gravel road and well pad construction in the current winter season.
Oil Search has also signed a landmark Land Use Agreement with Kuukpik Corporation.
