Rampart Energy (ASX: RTD) is developing a portfolio of petroleum exploration assets, both within Australia and overseas.
Rampart Energy (ASX: RTD), formerly Earth Heat Resources, has signed an agreement to earn up to 38,000 net onshore acres in the prolific petroleum producing North Slope of Alaska from Royale Energy (NASDAQ: ROYL).
The restructured and re-energised Rampart has turned its attention to oil and gas with a strong acreage position leveraged to large oil majors.
Rampart's acreage is close to the largest oil fields in the US, including the 13.7 billion barrel Prudhoe Bay field, and is prospective for conventional oil and gas.
Prudhoe Bay is the largest producing oil field in the U.S. and 18th largest worldwide with an estimated 50 billion barrels (OOIP) and significant associated gas.
Alaska is the 4th largest energy producing state in the U.S. where the Alaskan Government is pro development. Rampart’s acreage is located close to pipeline and refinery infrastructure.
Attractively, there are government incentives and cash rebates for exploration in Alaska.
Rampart's acreage also contains substantial potential for unconventional and oil shale plays.
Conventional prospectivity of the area is demonstrated by proximity to the Moose Tooth resource, estimated to be up to 600 million barrels of oil equivalent, which is about 15 kilometres to the northwest of the western farm-in block.
Based on information available, the prospective Jurassic sands which host this resource, appear likely to extend into the area to be jointly explored and exploited by Rampart and Royale.
The unconventional oil prospectivity of the region is highlighted by the US Geological Survey ranking this, as having the second highest estimated recoverable oil resource domestically, behind only the Bakken Shale.
The main prospective oil prone regional trend, extends through Rampart’s entire farm-in area.
Rampart can earn an initial 10% working interest in the Western Block by paying US$3.4 million in two tranches, half by 3 June 2013 and half by 1 December 2013 as well as the issue of options to Royale to purchase US$1.7 million of Rampart stock at a strike price of 150% of the volume weighted average price prior to the signature on the agreement.
The company can earn an additional 20% working interest in the Western Block by acquiring a 3D seismic survey over both the Western and Central Blocks by 31 March 2014 and the final 45% working interest in the Western Block by drilling, testing and completing two wells, including horizontal sections in target formations by 31 March 2015.
To earn the 75% working interest in the Central Block, Rampart must complete the 3D seismic survey above, and pay an additional US$1.7 million by 30 June 2014.
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