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Providing coverage of Alaska and northern Canada's oil and gas industry
June 2011

Vol. 16, No. 23 Week of June 05, 2011

Kenai Loop well tests at 10 mmcfpd

Buccaneer Energy Ltd. said initial test results from its first well in Alaska “exceed expectations,” flowing at a rate of 10 million cubic feet per day.

The Australian independent tested two zones totaling 87 feet of gross pay in the Upper Tyonek formation at the onshore Kenai Loop No. 1 well, north of the city of Kenai, and is now predicting deliverability between 6 million and 8 million cubic feet per day over the first two years of production, enough to “facilitate a favorable gas sales contract.”

Buccaneer is now planning a Kenai Loop No. 2 well at its 8,900 acres lease block in the area, a mix of state, Cook Inlet Region Inc. and Alaska Mental Health Land Trust leases.

The company said it might now also acquire additional seismic and drill additional wells.

14 potential zones untested

Buccaneer could conduct additional testing in the future.

The company said that well logs identified 16 zones totaling 510 feet of gross pay in the Beluga and Upper Tyonek as potential candidates, but the company chose to perforate and test only two of the three “high grade” zones because of limitations on rig time.

Buccaneer described the first zone as an upper sand of 37 feet of gross pay “confirmed as being quality reservoir with high porosity and good permeability.” The zone includes 12 feet of lower sand that is of “lesser quality” and wasn’t tested, but “remains attractive.”

The company encountered a gas kick in the upper sand of the zone during drilling.

Buccaneer described the second zone as a “massive sandstone zone of approximately 50 feet of gross pay which logs indicate has good porosity and permeability.”

The company now plans to drill a follow-up well in the third quarter, depending on rig availability, and is planning a development program beyond an initial three well program.

Buccaneer drilled the well using the Glacier Drilling Rig No. 1.

Buccaneer arrived in Alaska in March 2010 after acquiring the assets of Stellar Oil & Gas, and quickly identified five prospects it hoped to explore within a matter of years.

Those include two offshore units — Southern Cross and North West Cook Inlet — that the company hopes to drill no later than next summer using a jack-up rig acquired through a partnership with the Alaska Industrial Development and Export Authority.

—Eric Lidji






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