Production Commences at Kenai Loop 4
Sydney, Feb 13, 2013 AEST (ABN Newswire) - Buccaneer Energy Limited (
ASX:BCC) is pleased to advise that production from its 100% owned Kenai Loop # 4 well commenced on Sunday 10 February 2013 (US time). The Kenai Loop # 4 well is currently producing at an initial rate of 2.0 million cubic feet per day ("MMCFD").
The long term deliverable production rate from the Kenai Loop # 4 well is estimated to be 3.0 - 4.0 MMCFD. Kenai Loop # 4 gas production is in addition to the Company's current production of 6.5 MMCFD from the Kenai Loop # 1 well. The majority of the current total production of 8.5 MMCFD (1,400 BOEPD) is being sold to the local gas utility Enstar.
This production rate is currently limited by the installed temporary production facilities. In November 2012, the Company commenced the installation of permanent production facilities and pipeline connections at Kenai Loop; however, severe weather conditions meant that the build out of these was suspended in December 2012.
It is expected that the permanent facilities will be completed by 30 April 2013 and once permanent production facilities are in place, it is anticipated that the Kenai Loop field's total production rate may be increased to 10.0 -11.0 MMCFD (1,666 - 1,833 BOEPD). This represents a near 100% increase over the average production rate achieved in 2012.
South-central Alaska is currently experiencing severe gas shortages and the winter peak pricing of incremental gas supply reached US$22.00/MCF in the past 60 days. The Company has a minimum deliverability of 5.0 MMCFD to Enstar under its current gas sales agreement at an annual weighted price of US$6.24/MCF. Incremental production above this level is being sold into the winter peak pricing environment, while the Company negotiates a new long term gas sales agreement with potential purchasers.
View the Buccaneer Energy announcement at the link below:
http://media.abnnewswire.net/media/en/docs/ASX-BCC-720071.pdf
Contact
Buccaneer Energy Limited
T: +61-2-9233-2520
F: +61-2-9233-2530
WWW: www.buccenergy.com
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