Buccaneer planning to ramp up Kenai Loop

Since bringing its Kenai Loop gas field into production in mid-January, Buccaneer Energy Ltd. has sold into both the Enstar Natural Gas Co. winter daily auction and to the ConocoPhillips-operated liquefied natural gas terminal in Nikiski, the company said. The Kenai Loop No. 1 well is currently producing at 5.1 million cubic feet per day. The Australian independent said it is “confident that the well can be produced reliably at higher rates,” but wants to monitor the well for 30-60 days before ramping up production. Based on assurances from Enstar, Buccaneer said it expects to begin delivering natural gas into the Cook Inlet Natural Gas Storage Alaska LLC facility starting in April 2012.

Buccaneer is currently shooting a 25-mile 3-D seismic campaign in the Kenai Loop region to learn more about the prospect. So far, contractor Weems Geophysical Co. has drilled 900 of the 1,300 holes and expects the survey to be done by the end of March.

Buccaneer plans to drill the next Kenai Loop well from the existing drill pad to a bottom-hole location decided based on the results of the seismic campaign. The company is currently looking to secure a rig for the program, but expects to drill in April or May.

—Eric Lidji