Kenai Loop Update
Sydney, Aug 22, 2012 AEST (ABN Newswire) - Buccaneer Energy Limited (
ASX:BCC) is pleased to advise that the bottom-hole location for the Kenai Loop # 4 well has been finalised.
The Kenai Loop # 4 well will target 7 stacked potential pay sands in the Tyonek formation and will have a bottom-hole location approximately 2,000' north-west of the successful Kenai Loop # 1. All of the 7 stacked potential pay sands have been identified and mapped using the recently interpreted 3D seismic data and all have hydrocarbon indicators.
The targeted pay sands within the Tyonek include the 9700' and 10000' sands that are currently being produced in Kenai Loop # 1 well and therefore the Company has a high level of confidence in this well location. The Kenai Loop # 4 well is anticipated to take 35-40 days to drill with an additional 10 days for testing.
The Glacier rig is currently on location at Drilling Pad #1 and the Company is finalising preparations to spud the Kenai Loop # 4 well. These preparations include filing for a change to the previous permitted bottom-hole location, mobilisation of drilling crews and various service providers. The Company will advise when it has a definitive spud date.
Background
The Kenai Loop project consists of 9,308 acres and is immediately north and adjoins the lease boundary of the Cannery Loop field that has produced 180 BCF (30 MMBOE) and approximately 5 miles north of the Kenai Unit that has produced 2.4 TCF (400 MMBOE). The Cannery Loop and Kenai Unit were owned and operated by Marathon Oil Company and both share many of the same sand packages that have been encountered and are being produced in the Company's 100% owned Kenai Loop project.
The Company has completed a preliminary evaluation of the 3D seismic over the entire Kenai Loop project area. The initial evaluation effort has focused on the producing 9,700' and 10,000' sands (Tyonek formation) around the existing Kenai Loop # 1 well. Ralph E Davis Associates, Inc., when estimating the Proven (1P) and Proven and Probable (2P) Reserves to the Kenai Loop project, attributed an aerial extent of 340 acres. The 3D seismic preliminary results indicates up to 840 acres around the Kenai Loop # 1 well bore in each of the producing 9,700' and 10,000' sands in the Tyonek formations i.e. a total of up to 1,680 acres.
Additionally the Company has identified 11 new seismic gas anomalies from the stacked pays in the shallow Beluga and Sterling Formations and deeper Upper Tyonek formation, all of which have hydrocarbon indicators. The Company will risk assess each of these anomalies prior to finalising a future drilling program.
Fluid substitution data defining the sand package signature relating to the Tyonek zones that were logged and tested in the first Kenai Loop well drilled in 2011 has being incorporated into the 3D and being used to high-grade the drilling opportunities.
To view the complete Buccaneer Energy announcement, please click the link below:
http://media.abnnewswire.net/media/en/docs/ASX-BCC-690841.pdf
Contact
Buccaneer Energy Limited
T: +61-2-9233-2520
F: +61-2-9233-2530
WWW: www.buccenergy.com
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