Kenai Loop Drilling Report
Sydney, Oct 31, 2012 AEST (ABN Newswire) - Buccaneer Energy Limited (
ASX:BCC) is pleased to provide the following update on the progress of the 100% owned Kenai Loop # 4 well:
Time: 11.00am (Sydney) 31 October 2012 / 4.00pm (Anchorage) 30 October 2012.
Depth: 13,000' Measured Depth ("MD") / 12,683' Total Vertical Depth ("TVD").
Activity: Conditioning the well in preparation to run wire line logs.
Comment:
The well has reached the TD of 13,000' MD, and is being prepared for an exhaustive and thorough logging program to evaluate multiple zones that have been identified after an initial review of the log while drilling ("LWD") and mud logs.
Further wire line logging is required to identify the most promising zones for more testing which might include some or all of the following tests: side wall coring, MDT pressure and fluid sample recovery, and eventual production testing.
The 9,700' and 10,000' sand equivalents in the Kenai Loop # 4 well and which were also intersected in the Kenai Loop # 1 discovery well are provided below.
10,294' MD This sand is the equivalent of the proven productive 9,700' sand in the Kenai Loop # 1 well and was encountered as expected.
10,617' MD This sand is the equivalent of the proven productive 10,000' sand in the Kenai Loop # 1 well and was encountered as expected.
In addition to the 9,700' and 10,000' sand equivalents, up to an additional 5 zones will be reviewed using wire line logging (porosity, gas saturation and permeability) and are considered likely, at this point, as targets to production test.
Additionally, there are several zones where sands, conglomeratic sands, and coals appear to be inter-bedded. In these zones, the coals were "frothing" gas when sampled at the surface. These zones will be examined closely during wire line logging to assess if they are additional candidates for production testing.
The targeted pay sands within the Tyonek included the 9,700' and 10,000' sands that are currently producing 6.0 million cubic feet per day ("MMCFD") from the Kenai Loop # 1 well on a 9/64" choke. 80% of this gas is being sold to a local utility at an annual weighted price of US$6.24 / MCF and the remaining 20% to a local third party at US$7.50 / MCF.
Contact
Buccaneer Energy Limited
T: +61-2-9233-2520
F: +61-2-9233-2530
WWW: www.buccenergy.com
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