Sunday, July 21, 2013

West Eagle Unit - Plan of Operations Approved

Buccaneer Energy has announced that the plan of Operations for 100% owned West Eagle Unit #1 well has been approved by the Alaska Department of Natural Resources (DNR).

The company requires the following additional approvals before drilling operations commence:

  • A drilling permit must be approved by the Alaskan Oil and Gas Conservation Commission (AOGCC). This takes approximately 30 days and the company anticipates lodging the application shortly; and
  • The oil spill plan (C-Plan) amendment needs approval by the Alaska Department of Environmental Conservation (ADEC). Buccaneer applied for this amendment in March 2013 and it is currently under final review by ADEC.

The Company plans to spud the West Eagle #1 well on completion of the Kenai Loop #1-4 well using Glacier drilling rig currently on location at Kenai Loop. On completion of the West Eagle #1 well, the Glacier drilling rig will move back to Kenai Loop to continue the Kenai Loop development program.

The Glacier drilling rig was secured by Buccaneer Energy in 2012 for use on its land drilling projects and will utilized for the West Eagle prospect due to its lower risk profile and improved economics when compared to alternative drilling options.

The primary of objective of the West Eagle #1 well targets a 150’ Upper Tyonek interval of sandstones that has gas shows in a down-dip offset well, the Standard Oil of California, Anchor River #1. Up-Structure on a northwest to southwest trending ridge, the West Eagle well will test a large amplitude anomaly mapped on 223 miles of 2D seismic data. The anomaly size is estimated at more that 4,000 acres.

The West Eagle #1 well will also test a deeper, large stratigraphic pinch-out which is part of what is often called the East Side Oil Play made up of basal Teriary or older potential reservoirs up-dip from a postulated middle Jurassic oil source conduit system. The deeper objected is also amplitude supported.

The West Eagle #1 well is also included in the Letter of Intent announced by the Company on July 5, 2013. Subject to execution of binding agreements, the Farm-In party has an option to pay 100% of the costs associated with two wells at West Eagle for which is will earn 49% working interest.

Read entire July 17, 2013 press release: