Kenai Loop - Final Testing Results
Sydney, Jan 17, 2013 AEST (ABN Newswire) - Buccaneer Energy Limited (
ASX:BCC) is pleased to advise the final production testing results from the 100% owned Kenai Loop # 4 well:
HIGHLIGHTS
- Successfully completed 4 point test from one zone totalling 20' gross pay
- Shut in wellhead pressure peaked at 3,899 psi
- Absolute open flow potential ("AOFP") of 9.0 MMCFD achieved from 10,300' sand
- Long term production rate targeted at 3.0 - 4.0 MMCFD (580 - 750 BOEPD1)
- Kenai Loop field production rate to increase to 10 - 11 MMCFD (1,666 - 1833 BOEPD1) from two wells
- Winter peak gas pricing has been up to US$22.00 / MCF
The Kenai Loop # 4 well was shut-in for a 20 hour period with shut-in tubing pressure peaked at 3,899 psi. A flow test over 4 different choke sizes, a 4 point test, was then successfully conducted. This test includes the measurement of pressures at each of the choke sizes which allows for the calculation of the AOFP.
A 10' section of the upper most sand at 10,300' measured depth was perforated, this sand has gross pay of 20' and correlates to the 9,700' sand in the Kenai Loop # 1 well and the AOFP was calculated as 9.0 MMCFD.
The long term deliverable production rate from the Kenai Loop # 4 well is estimated to be 3.0 - 4.0 MMCFD (500 - 667 BOEPD1). The addition of the Kenai Loop # 4 well will increase the field's total production rate to 10.0 - 11.0 MMCFD (1,666 - 1,833 BOEPD1).
The Kenai Loop # 1 well performance continues to be excellent and is currently producing 6.5 - 7.0 MMCFD (1,083 BOEPD), the Company is selling 5.0 MMCFD into its long term gas contract with ENSTAR at a annual weighted average price of US$6.24 / MCF. In addition, the Company has sold on a temporary basis 1.5 MMCFD to two smaller non-utility Cook Inlet users at US$15.00 / MCF.
South-central Alaska is currently experiencing severe gas shortages and the winter peaking pricing of incremental gas supply has reached US$22.00 / MCF. This high pricing range is weather and supply related and could remain in place while winter heating conditions persist; the additional gas available from Kenai Loop field is capable of being sold into this spot market.
The Company has identified temporary portable production equipment to allow an early start-up of production from Kenai Loop # 4 and estimates the well will be on production in 3 - 4 weeks, thereafter the Company will build permanent production facilities at Kenai Loop when weather conditions permit.
The Company will now engage a third party engineer to restate reserves at the 100% Kenai Loop project.
View the Buccaneer Energy announcement at the link below:
http://media.abnnewswire.net/media/en/docs/ASX-BCC-716467.pdf
Contact
Buccaneer Energy Limited
T: +61-2-9233-2520
F: +61-2-9233-2530
WWW: www.buccenergy.com
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