(MENAFN- ABN Newswire)
Buccaneer Energy Limited (ASX:BCC) (OTCMKTS:BCGYF) ("Buccaneer" or "the Company") is pleased to advise that it has executed two short-term gas sales contracts.
The first contract requires up to 2.0 million cubic feet per day ("MMCFD"), and was executed with a large commercial end-user. This contract is anticipated to commence mid-November 2013 and last for a period of approximately 5 months. Gas volumes to be delivered under this contract will be dictated by weather conditions.
The second contract is with a Cook Inlet oil producer. This contract is being executed as a backup during the winter months to ensure operation of their oil facilities in the Cook Inlet. No specific volumes have been committed to, and deliveries will be dictated by the requirements of the customer.
Pricing of both contracts is consistent with recent gas sales agreements in the area, and sits in the range of US$6.80 - US$7.00/MCF.
These new gas sales contracts are in addition to existing long-term contracts with ENSTAR, under which the Company is supplying 9.5 MMCFD at an average weight price of approximately US$6.50/MCF.
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