NEWS BULLETIN

November 11, 2010 --- Vol. 16, No. 101November 2010

Buccaneer is proposing to purchase jack-up

Petroleum News reported yesterday that the Alaska Industrial Development and Export Authority had received an application for a $60 million bond to acquire a jack-up rig for Cook Inlet from Kenai Offshore Ventures LLC and speculated that Buccaneer Alaska was the most likely company since Buccaneer recently said it planned to file an application to use Recovery Zone Facility bonds to jet a jack-up rig.

Buccaneer has confirmed that it is behind Kenai Offshore Ventures LLC which would lease the rig to a new operating company.

The operating company in turn would bring in revenues by charging a day rate to local operators for drilling services.

Buccaneer said Kenai Offshore Ventures has indentified at least five years worth of work for the rig, “ranging from the mid-sized operators to the majors.”

The work includes new exploration drilling, infill drilling at existing fields and plug and abandonment projects.

Buccaneer said it is prepared to commit in writing to a one-year or two-well drilling program, using the jack-up rig to drill exploration wells at the two offshore plays it owns in the upper Cook Inlet: the proposed Southern Cross and Northwest Cook Inlet units.

Buccaneer said it has identified a jack-up rig “suitable” for Cook Inlet, completed an inspection of the rig in Singapore and indentified additional upgrades. Buccaneer also said that Kenai Offshore Ventures and the operating company are currently in talks with Seahawk Drilling Inc., a Houston-based offshore driller, to physically operate the rig.

Under a proposed timeline, Buccaneer wants to have the rig in Alaska by May 2011.

See story in Nov. 14 issue, available to subscribers online at noon, Friday, Nov. 12, at www.PetroleumNews.com


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