Buccaneer closes on Cosmopolitan

Buccaneer Energy Ltd. and BlueCrest Energy Inc. have closed on their acquisition of the Cosmopolitan prospect in the Cook Inlet basin, the companies said Aug. 16.

Through their deal with Pioneer Natural Resources Alaska Inc., the Australian independent Buccaneer acquired a 25 percent working interest in the offshore prospect and assumed operatorship over exploration and development efforts, and the Fort Worth, Texas-based privately held BlueCrest acquired the majority 75 percent working interest.

Buccaneer said the closing documents are being held in escrow while its lender, Richmond Hill Investment Co. LP, “provides final written consents in respect to Buccaneer assuming the role of operator.” That is expected before the end of August.

The Cosmopolitan prospect consists of two leases in the waters off the coast of Anchor Point, in the southern Kenai Peninsula. Pennzoil discovered Cosmopolitan in 1967, but the field remained fallow until ConocoPhillips resumed exploration efforts in 2001.

ConocoPhillips drilled a well and a sidetrack and shot 3-D seismic over the region before selling the prospect to Pioneer in 2006. Pioneer drilled a lateral off the sidetrack and conducted a subsequent flow test, but decided not to pursue full-scale development.

Buccaneer plans to use its newly acquired jack-up rig to conduct shallow gas drilling from offshore. The company also plans directional wells from an onshore pad to target deeper oil deposits.

—Eric Lidji