Cosmopolitan Project – Acquisition of Offset Acreage
Buccaneer Energy Limited (“Buccaneer” or “the Company”) is pleased to advise that it has executed binding agreements with Apache Alaska Corporation (“Apache”) to acquire its 100.0% working interest in four State of Alaska Oil and Gas leases that adjoin the existing Cosmopolitan Project in which the Company has a 25.0% working interest.
The new leases that total 14,353 acres are ADL 391899, 391902, 391903 and 391904 (the “Leases”), see Figure 1 (yellow crosshatched area).
BlueCrest Energy (“BlueCrest”) holds the remaining 75% working interest in the existing Cosmopolitan Project. The Company has offered BlueCrest the ability to acquire a 75.0% working interest in the Leases under the same terms as the Company, pursuant to the terms of its agreement with BlueCrest.
The financial terms of the transaction are confidential but are not material to Buccaneer.
The Company believes that the Leases have the potential to contain new Reserves associated with the Cosmopolitan geological structure.
Southern Cross Unit #1 Well – Progress Report
Buccaneer Energy Limited (“Buccaneer” or “the Company”) is pleased to advise that the Endeavour jack-up rig has been successfully mobilised to the Southern Cross # 1 well location.
The Endeavour’s legs have been jacked down and the rig’s preloading operation was successfully completed over 4 stages. The rig was skidded approximately 40’ out into rig operating position, at which point a hammer was used to drive 30” conductor pipe to 326’ MD, approximately 170’ penetration below the mud line.
The 30” diverter system and mud cross has been installed and preparations are underway to test same. Once tested successfully and the remainder of well control equipment is installed, final testing must be witnessed by the Alaskan Oil and Gas Conservation Commission (”AOGCC”). After this final inspection operations to pick up drilling equipment and spud the well will commence.
The Southern Cross Unit is currently 100% owned by the Company. The Company has executed a farm-out agreement with Los Angeles based EOS-Petro, Inc. (“EOS”) where EOS will earn a 50% working interest by paying 100% of the well costs of the first two wells at the Southern Cross Unit, including the Southern Cross # 1 well.