Quarterly Report December 2013
Sydney, Jan 31, 2014 AEST (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC) (BCGYF:OTCMKTS) is pleased to present its quarterly report for the 3 months ending 31 December 2013.
Key milestones and activities during and subsequent to the quarter centered on progressing the company's recapitalisation process, and included:
- Quarterly Gross Production Revenue of US$5.3 million
- Completion of Kenai Loop reserve and resource certification
- Commencement of drilling of West Eagle Unit #1 well
- Portfolio review resulting in withdrawal from the Southern Cross and Northwest Cook Inlet projects
- Successful completion of sale of 25% working interest in Cosmopolitan project for US$40.6 million
- Successful completion of sale of 50% interest in Kenai Offshore Ventures for US$23.95 million
- Refinancing Victory Park Capital debt facilities
- Repaying unsecured debt facility of US$11.2 million
- Appointing two new directors
REVIEW OF OPERATIONS
A portfolio review was recently completed highlighting the need to focus the Company's exploration and development efforts on its most prospective projects - Kenai Loop, Tyonek Deep and West Eagle.
As a result, the Northwest Cook Inlet and Southern Cross projects were removed from the Company's priority list for drilling in 2014, and the Alaska Department of Natural Resources (DNR) was notified that Buccaneer will not be continuing with these two projects at this time. For further details please refer to the Company's release of 28 January 2014.
The 100% owned Kenai Loop gas field is producing at a combined rate of approximately 8.8 million cubic feet per day (MMCFD) from the Kenai Loop #1-1 and Kenai Loop #1-3 wells. Since the commencement of production operations in February 2012 until the date of this report, the project has produced in excess of 5 billion cubic feet (BCF) of gas (833,333 BOE). The reservoirs of the Kenai Loop #1-1 and #1-3 wells continue to perform at or above expectation.
Since the completion and commissioning of the Kenai Loop facilities in February 2012, virtually no production time has been lost due to the production facilities or well performance. This is a direct result of the initial design and construction of the field's production facilities by the Company's in-house engineering team, and the supervision and maintenance by the Company's experienced field operations staff.
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Buccaneer Energy Limited