Onshore Drilling Schedule
Sydney, Aug 31, 2012 AEST (ABN Newswire) - As previously advised Buccaneer Energy Limited (
ASX:BCC) has applied to the Alaskan Department of Natural Resources ("DNR") to unitise it's 100% owned West Eagle project located on the southern Kenai Peninsula, the submission of this application included a substantial body of technical appraisal work undertaken by the Company over the last 2 years. The presented data shows the presence of a potential hydrocarbon accumulation within the project area and a drill pad location has also been identified.
The current lease terms required the Company to spud a well by 30 September 2012. On lodgement of the Unit application to the DNR this drilling deadline was automatically suspended and will be re-established as part of the Unit approval process. The Company expects that on approval of a Unit by the DNR the Company will be required to spud a well at West Eagle in mid to late 2013 and the drilling of this well will maintain the entirety of the leases within the approved Unit.
Although the Company had definite plans to move forward with the drilling program in the near term, the DNR indicated that a final unit decision may not be forthcoming until late in the fourth quarter 2012. The extension will allow Buccaneer to undertake further interpretation of seismic data and complete well design before spudding in the first quarter 2013.
The Company intended to drill and complete the Kenai Loop # 4 well and then mobilise the Glacier Drilling Rig to the West Eagle location so as to meet its 30 September 2012 drilling commitment. The Glacier Drilling Rig will now remain at Kenai Loop, and allow Buccaneer to focus on drilling additional locations within the Kenai Loop Field which has:
- Reserves certified by a third party engineer;
- A recently completed 3D seismic survey of 24 square miles;
- A gas sales agreement to supply gas to local utility ENSTAR; and
- A gas sales agreement to supply gas to ConocoPhillips LNG Facility through existing infrastructure.
Background
The proposed West Eagle Unit includes 9 State Leases on the eastern limb of the Cook Inlet Basin. The Company has reprocessed and interpreted 230 miles of 2D seismic data and the first well is designed to test potential oil and gas accumulations on a large structural high up-dip from wells with log shows drilled in the 1960s. The Company has a 100% working interest and 79.25% net revenue interest in these leases.
The first planned well at West Eagle will be approximately 10,000' total vertical depth and is planned to test the Tyonek shallow gas and deep oil target. This location has:
- Large potential reserves;
- Is 8 miles east of Union Oil's (Hilcorp) Nikolaevsk; and
- 10 miles southeast of the Deep Creek Gas Unit (produced 19 Bcf).
To view the complete Buccaneer Energy anouncement, please click the link below:
http://media.abnnewswire.net/media/en/docs/ASX-BCC-692518.pdf
Contact
Buccaneer Energy Limited
T: +61-2-9233-2520
F: +61-2-9233-2530
WWW: www.buccenergy.com
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