Looking to avoid getting caught in the fast approaching icy season, Buccaneer Energy Ltd. is postponing plans to drill a well at its offshore Southern Cross unit this year.
The Australian independent said that it recently moved its Endeavour jack-up drilling rig to Port Graham three weeks earlier than planned for “minor winterization work and annual hull inspections.” From Port Graham, the rig is scheduled to head back across Cook Inlet to drill the Cosmopolitan No. 2 well at the prospect off the coast of Anchor Point.
Buccaneer plans to return to Southern Cross when the next summer drilling season begins in mid-April 2014, but before the company can drill it must first negotiate extensions to the drilling commitments it will be missing by cancelling the program this year.
Those include a private farm-in agreement with Hilcorp Alaska LLC on two of the four leases at the unit. Buccaneer farmed-in the two leases in 2010 from Chevron Corp., which subsequently sold its Cook Inlet assets to Hilcorp. Among other commitments, the arrangement requires Buccaneer to drill a well on the leases to a depth of at least 8,500 feet. Buccaneer said it is currently in negotiations with Hilcorp to extend the agreement.
See story in Oct. 13 issue, available online at 11 a.m., Friday, Oct. 11, at www.PetroleumNews.com