The license,which acreage is located approximately 55 miles north east of Anchorage, makes up the majority of Miller’s and Cook Inlet Energy’s net undeveloped acres, and covers primarily natural gas prospects.

The original work commitment of approximately $3.5m was fulfilled, and, prior to the granting of the extension of the license, Cook Inlet Energy had the right to convert the license for all or any portion of the acreage into oil and gas leases.

The company said that once the original term of the license expired, Cook Inlet Energy would have been required to pay a per acre fee in order to convert the acreage to leases to the state and commence drilling operations within specified timeframes.

Cook Inlet Energy applied for an extension under the license terms and was granted a three year extension on 29 October 2010, extending the expiration date of the license to 31 October 2013.

To comply with extension terms, Cook Inlet Energy committed to a total additional work commitment of $750,000 over the term of the extension, with a minimum of $250,000 being required by the end of the first year and an additional $250,000 by the end of the second year.