Deep Oil Rights - Additional Information
Sydney, May 6, 2013 AEST (ABN Newswire) - Buccaneer Energy Limited (
ASX:BCC) is pleased to provide additional information in respect to the farm-in agreement announced earlier today in respect to the North Cook Inlet area.
The oil is contained in the Lower Tyonek, Hemlock, Sunfish and West Foreland Formations. Since 1962 these formations have been penetrated by 13 wells (see Table 1); all of which were drilled within the North Cook Inlet Unit acreage. Seven of the wells were drilled in the 1990s; the remaining six wells were drilled by various majors during the discovery and delineation phase of the Cook Inlet in the 1960s.
Of the 13 wells drilled, a total of 10 wells were successfully flow tested at rates of up to 4,343 BOEPD (North Forelands # 1 well) and 4,320 BOEPD (North Cook Inlet # B-02 well), or had logging results confirming the presence of productive oil. The three unsuccessful wells had oil shows but were drilled outside the oil fairway. A table outlining the 13 wells and the results of each are in Table 1 (see link below).
Buccaneer has engaged Netherland, Sewell and Associates ("NSAI") to provide a Reserve Report on the oil reserves acquired by the Company, and is expecting to book meaningful Proven and Probable Reserves. NSAI has previously assigned a P50 Resource of 15.5 million BO and 187.2 BCF of gas (46.7 MMBOE) to the Company's 100% owned North West Cook Inlet Unit that is within the same geological structure as the leases being farm into by the Company.
Drilling Plans
The Company plans to spud a well in Block A to test the Hemlock Formation using the Endeavour jack-up rig. This well will be an offset to the ARCO North Forelands #1 well that was flow tested at 4,343 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.
To view location map and historical well data, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-BCC-733913.pdf
Contact
Buccaneer Energy Limited
T: +61-2-9233-2520
F: +61-2-9233-2530
WWW: www.buccenergy.com
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