Buccaneer Energy Limited (“Buccaneer” or the “Company”) is pleased to advise that drilling of the Kenai Loop # 1-4 well has commenced. The Kenai Loop # 1-4 is being drilled from Drilling Pad # 1 which is the same drilling pad as Buccaneer’s other Kenai Loop wells and will be drilled to approximately 10,700’ total vertical depth (“TVD”) / 10,897’ measured depth (“MD”).
The well will be drilled to a target that appears to be fault separated from the current producing zones in the Kenai Loop # 1-1 and Kenai Loop # 1-3 wells and is expected to be completed in late September 2013. The current production facilities at Drilling Pad # 1 will need minor upgrades to facilitate production from this new well and preliminary plans have been finalized to perform these upgrades with minimal delays.
Drilling reports for the Kenai Loop # 1-4 well will be made on Tuesday of each week.
The Kenai Loop project consists of 9,308 acres and is immediately north and adjoins the lease boundary of the Cannery Loop field that has produced 184 BCF (30 MMBOE) and approximately 5 miles north of the Kenai Unit that has produced 2.4 TCF (400 MMBOE). The Cannery Loop and Kenai Unit were owned and operated by Marathon Oil Company and both share many of the same sand packages as that have been encountered and that are being produced in the Company’s 100% owned Kenai Loop project.
The Company has completed a preliminary evaluation of the 3D seismic over the entire Kenai Loop project area. The initial evaluation effort has focused on the producing 9,700’ and 10,000’ sands (Tyonek formation) around the existing Kenai Loop # 1-1 and Kenai Loop # 1-3 wells.
Additionally the Company has identified 11 new seismic gas anomalies from the stacked pays in the shallow Sterling and deeper Tyonek formations, all of which have hydrocarbon indicators. The Company will risk assess each of these anomalies prior to finalising a future drilling program.
BUCCANEER ENERGY LIMITED
Mr Dean Gallegos
For further information please contact Dean Gallegos, Executive Director on 0416 220 007 or 02 9233 2520. Alternatively visit the Company’s website at www.buccaneerenergy.com.