Bloomberg News

Buccaneer Energy Plans Seven Wells in Alaska to Boost Output

October 09, 2012

Buccaneer Energy Ltd. (BCC), an energy producer that entered Alaska in 2010, said it plans to drill at least four onshore wells and three offshore wells in the state over the next year as it seeks to boost output.

The company, based in Sydney, has been getting prepared for drilling, including with seismic work, Jim Watt, president of the Buccaneer Alaska LLC unit, said during an interview at an Oil Council conference in Houston yesterday.

“Now we’re to the point where we’re funding drilling,” Watt said. “And this is where we’re going to see a step change in value as we move forward, especially over the next 6 to 12 months.”

Buccaneer is seeking to produce natural gas for an Alaska market that can be tight, especially during winter months, Watt said. The company has a gas sales agreement with an annual weighted price of $6.24 per thousand cubic feet, according to a report on its website. That’s higher than gas futures in New York, which settled at less than $3.50 per million British thermal units yesterday.

Buccaneer, which is listed for trading in Australia, may examine a further listing in areas such as the U.S. and Canada as it grows and moves forward with drilling, Watt said. In January, Buccaneer said it began production in Alaska at its Kenai Loop project.

The company’s sales agreement in Alaska allows it to deliver as much as 15 million cubic feet of gas a day, according to a report on its website. Gas exports also are possible from Alaska. Buccaneer’s initial project in the state has been producing about 5 million cubic feet a day.

To contact the reporter on this story: Edward Klump in Houston at eklump@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net


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