North Cook Inlet Deep Oil Rights - Economic Values
Sydney, July 10, 2013 AEST (ABN Newswire) - Buccaneer Energy Limited (
ASX:BCC) is pleased to advise that Netherland, Sewell & Associates, Inc. ("NSAI") have completed the economic cash flows in respect to the deep oil rights within the 23,368 acres of the North Cook Inlet Unit - in which the Company is earning a 100% working interest.
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 1 in link below.
Contingent Resources
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.
North Cook Inlet is one of the three off shore projects included in the Letter of Intent announced by the Company on 5 July 2013. Subject to the execution of binding agreements the Farm-In party has agreed to pay 100% of the costs associated with two wells in each of the projects for which it will earn a 49% working interest.
For Tables, Figures and Charts, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-BCC-744301.pdf
Contact
Buccaneer Energy Limited
T: +61-2-9233-2520
F: +61-2-9233-2530
WWW: www.buccenergy.com
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