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Buccaneer Energy - Reserves & Resources - North Cook Inlet Deep Oil Rights


  • Netherland, Sewell & Associates certifying engineers;
  • Reserves of 9.8 MMBOE Proven (1P) & 38.5 MMBOE Proven & Probable (2P);
  • Increases Company’s 1P Reserves by 51% and 2P Reserves by 117%;
  • Additional Contingent Resource of 10.3 MMBOE (1C) & 23.9 MMBOE (2C);
  • 10 wells have successfully penetrated the oil formations;
  • Flow tested at rates up to 4,320 BOEPD (North Cook Inlet #B-02 well).

Buccaneer Energy Limited (“Buccaneer” or the “Company”) is pleased to advise that the preliminary Reserve and Resource estimates by Netherland, Sewell & Associates, Inc. (“NSAI”) have been delivered and are summarized below for the deep oil rights within the 23,368 acres of the North Cook Inlet Unit, in which the Company has a 100% working interest.

Fig 1 -Reserves estimates table

The Reserves estimates, 80% of which are oil, are based on 10 historical wells that successfully penetrated the oil formations and a 3D seismic survey. They were successfully flow tested at rates of up to 4,320 barrels of oil equivalent per day (“BOEPD”) (North Cook Inlet #B-02 well) or had logging results confirming the presence of productive oil. In addition to the 10 successful wells, an additional three wells were drilled which did not flow; each had oil shows, but were outside the oil fairway. A table outlining the 13 wells and the results of each is provided in Table 2.

The above Reserves increase the Company’s Proven Reserve (1P) base to 27.1 million barrels of oil equivalent (“MMBOE”) and its Proven & Probable (2P) to 71.4 MMBOE, a 54% and 117% respective increase. All Reserves have been certified by independent third-party engineers NSAI or Ralph E Davis, two highly respected US-based engineering firms.

Contingent Resources

In addition, NSAI has estimated the following Contingent Resources:

Fig 2 - Contigent Resources Table

A full summary of the Reserves and Resources can be found in Table 1.

The oil is contained in the Lower Tyonek, Hemlock, Sunfish and West Foreland Formations. Drilling on the prospect began in 1962, and the formations have since been penetrated by the 13 wells outlined above; all of which were drilled within the North Cook Inlet Unit acreage, but were never placed on production. Seven of the wells were drilled in the 1990s; the others were drilled by various majors during the discovery and delineation phase of the Cook Inlet in the 1960s.

The North Cook Inlet Unit adjoins the Company’s existing North West Cook Inlet Unit where NSAI has previously provided a P50 resource estimate of 45.9 MMBOE which consists of 16.0 MMBO in oil pay zones that are contiguous to those in the North Cook Inlet Unit, and 185.0 BCF of gas in shallower gas horizons. The North West Cook Inlet Unit and North Cook Inlet Unit now have a total Resource (Contingent and Prospective) of 69.8 MMBOE.

Drilling Plans

On 6 May 2013, the Company announced that it had agreed to the division of the farm-in area into two acreage blocks, Block A and B, with a commitment to drill a well in each block. A well must be spudded in either Block A or Block B by December 31, 2014, and a second well in the remaining block by December 31, 2015.

The Company plans to spud a well in Block A to test the Hemlock Formation using the Endeavour jack-up rig in either the second or third quarter 2014. This well will be an offset to the ARCO North Forelands #1 well that was flow tested at 4,340 BOEPD from three formations (including the Hemlock) with oil testing at 43o API Gravity. The ARCO North Forelands #1 well was drilled in 1992 when oil averaged US$19.25 per barrel.

The well in Block B will be drilled as an offset to the Shell NCI #1 well that was flow tested at 2,270 BOPD from one Tyonek horizon. The Shell NCI #1 well was drilled in 1964 when oil averaged US$3.00 per barrel.

Yours faithfully



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.buccenergy.com.
Competent Person Statement

Information contained in this report pertaining to the Alaskan projects was reviewed by Dr. Vijay Bangia, PhD in Petroleum Engineering from the University of Tulsa, who has over 31 years experience including employment by Shell Oil Company, Union Texas Petroleum, Burlington Resources and Renaissance Alaska. Dr. Bangia has approved the inclusion in this report of the technical matters and information herein in the form and context in which it appears.

Table 1 NW Cook Inlet Deep Oil Rights

Table 2 - Historical Oil Wells North Cook Inlet

NW Cook Inlet project map

Click here to view larger map
North Cook Inlet Stratigraphic Column

About Buccaneer

Buccaneer Energy Limited is an Australian listed company focused on developing its 100% owned oil & gas assets in Alaska. The Company's flagship projects are a series of onshore and offshore developmental and exploration prospects in Alaska’s Cook Inlet.

Buccaneer Energy has a 3 pronged cashflow strategy:

  • Developing the 100 % owned Kenai Loop onshore gas project with independently assessed 6.4 MMBOE in 2P Reserves;
  • Operating a offshore Jack Up rig for use by third parties in the Cook Inlet; and
  • Developing its 100% owned offshore Cook Inlet projects that have independently assessed 150.8 MMBOE in 2P Reserves / P50 Resources using the acquired jack-up rig.

Buccaneer Energy has a 50/50 joint venture with Singaporean-based Ezion, a leader in the development, ownership and chartering of strategic offshore assets, and the Alaskan Industrial Development and Export Authority (“AIDEA”). This joint venture has acquired the jack-up rig “Endeavour” which is capable of drilling in all areas of the Cook Inlet, the Beaufort Sea and the Chukchi Sea. Mobilisation of the Endeavour into the Cook Inlet was completed in late August 2012.

The Alaskan Government is supportive of oil and gas in the Cook Inlet. There are a number of fiscal incentive programs for exploration and development in the Cook Inlet.

Buccaneer Energy has two onshore wells at Kenai Loop producing at a combined rate of 10.0 MMCFD (1,666 BOEPD). The Company expects this to increase to 11 - 12 MMCFD (1,833 – 2,000 BOEPD) if a third gas sales contract can be finalised in the coming months.

Buccaneer Energy also has major working interests in Texas and the Gulf of Mexico, USA.


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