Endaevour Jack-Up Rig Update
Sydney, Nov 13, 2012 AEST (ABN Newswire) - Buccaneer Energy Limited (
ASX:BCC) is pleased to provide an update on the "Endeavour - Spirit of Independence" ("Endeavour") jack-up rig.
The Endeavour is owned via the Company's subsidiary Kenai Offshore Ventures, LLC ("Kenai Offshore") and is a joint venture with Singapore based Ezion Holdings Limited and the Alaska Industrial Development and Export Authority ("AIDEA"). Buccaneer is the designated Manager of Kenai Offshore.
As previously advised, since the Endeavour's arrival in Homer in late August 2012, Buccaneer has been working with local contractors to complete various rig upgrades and repairs ahead of the final vessel inspection and certification. The Company is pleased to advise that work on rig is nearing completion and the Endeavour will soon be ready for operations.
The following is an update on the critical path items that need to be completed prior to the Endeavour receiving final permits to operate in the Cook Inlet:
1. Fast Rescue Craft. The parts required to address a manufacturer recall for the fast rescue craft, issued after the rescue craft was purchased and installed in Singapore, which have been approved by the US Coast Guard, have been shipped to location and will be installed in the next few days.
2. General Alarm system. The general alarm system, which had been certified in Singapore, but failed subsequent testing on arrival in Homer, has been updated and the system is now operational; and
3. Firefighting system. This was installed and certified in Singapore, however, during transit to Alaska a leak developed in a valve that was discovered upon the Endeavour's arrival. Repairs are pending awaiting delivery of parts.
Buccaneer believes that the Cook Inlet basin remains one of the most underdeveloped hydrocarbon basins in North America, and in the coming years the Endeavour will play a significant role in developing that potential.
The Endeavour will not only play a key role in revitalizing Cook Inlet exploration and development, but with this recent upgrades and refitting, the Endeavour is now suitable to support exploration and development operations in Arctic waters such as the Chukchi Sea off the North Slope of Alaska.
Drilling Schedule
The Company has applied to the Alaska Oil and Gas Conservation Commission ("AOGCC") for a gas only determination for the Cosmopolitan ("Cosmo") project. If granted this will allow the Company to spud a well at Cosmo and drill through the shallow gas zone prior to deepening the well into the deeper oil zone on approval of a revised C-Plan, also called an oil spill plan.
The revised C-Plan is for an oil spill response plan that is capable of containing an 800 BOPD spill. The Company already has an approved C-Plan for its Southern Cross and North West Cook Inlet projects for a containment of a 5,500 BOPD oil spill.
If the gas only determination is granted by the AOGCC the Endeavour will move onto the Cosmo location on the granting of a surface rights use permit by the Department of Natural Resources ("DNR"). The earliest time that the surface rights use permit can be granted is the first week of December 2012.
If the AOGCC does not grant a gas only determination for Cosmo a decision will be made either to dock the Endeavour at the deep water port at Homer or at another location until the revised C-Plan is approved and a well can be drilled at Cosmo through to the deeper oil zone. The approval of the revised C-Plan is subject to a public hearing process that is anticipated to last until mid January 2013.
Contact
Buccaneer Energy Limited
T: +61-2-9233-2520
F: +61-2-9233-2530
WWW: www.buccenergy.com
| ||
|
