Pursuant to the terms of the lease purchase and sale agreement with Linc Energy (Alaska), GeoPetro will receive a $4m payment from the proceeds of the first 75% of 8/8ths of any oil and gas production from the Alaskan Leases.
Following the receipt of the amount, GeoPetro will thereafter receive an overriding royalty interest of 10% of 8/8ths of the proceeds of oil and gas production produced from or attributable to the Alaska leases.
The prospect was identified by GeoPetro after the company reprocessed certain 2-D seismic data, which it acquired from AMOCO on the Point MacKenzie Block.
The LEA #1 well is located less than two miles from the Enstar 20" natural gas pipeline, which has abundant spare capacity.
