Buccaneer Energy Kenai Loop First Quarter Performance
Sydney, April 3, 2012 AEST (ABN Newswire) - Buccaneer Energy Limited (
ASX:BCC) (PINK:BCGYF) is pleased to give the following update in respect to its 100% owned Kenai Loop project located onshore Cook Inlet, Alaska.
The Kenai Loop # 1 well commenced production on 14 January 2012 (US time). The well has been on continuous production for approximately six weeks and is producing at 5.1 million cubic feet per day ("MMCFD") on a 5/64" choke.
During the first quarter the Company has sold gas into both the ENSTAR winter daily auction and the ConocoPhillips gas sales contract. The average gas price achieved during that time was US$6.76 MCF.
The Kenai Loop # 1 well was in production for approximately 65% of the first quarter, revenue from production during the first quarter is estimated to be US$1.56 million(1).
ENSTAR has again confirmed that it is currently on track to commence injecting gas into its new CINGSA gas storage in April 2012. Until that time the Company will continue to sell gas to ConocoPhillips to feed its LNG facility located approximately 10 miles north-west of the Kenai Loop project.
The Company's gas sales contract with ENSTAR entails the Company delivering a minimum of 5.0 MMCFD and a maximum of 15.0 MMCFD to ENSTAR on the commencement of the CINGSA facility, at an annual weighted average price of US$6.24 / MCF.
(1) It is expected that royalties and operational expenses will be equivalent to 20% of gross revenue.
Contact
Buccaneer Energy Limited
T: +61-2-9233-2520
F: +61-2-9233-2530
WWW: www.buccenergy.com
| ||
|
