Caelus Energy Alaska, announced in October 2016 that it had made a significant light oil discovery on its state leases on Alaska's North Slope.
Caelus estimates the oil under the current leasehold to be 6 billion barrels.
Caelus CEO Jim Musselman said at that time that the find has the size and scale to play a meaningful role in sustaining the Alaskan oil business over the next three or four decades.
He expressed concerns then about the state's fiscal policy, and what impact it might have on the project.
Caelus has now stated that it will not drill an appraisal well in its Smith Bay discovery next winter.
Company officials said the uncertainty about what the legislature will do this year, plus low oil prices, is causing too much unpredictability.