Buccaneer Energy Limited (ASX:BCC) previously advised that the perforation and production testing of the Kenai Loop # 4 well was scheduled to commence on or about Friday 30 November 2012 (US time). While checking pressure integrity of the well casing and liner in anticipation of the start of that testing program a small leak was detected that required rectification work. That work is now being completed and on completion the well will certified for safe performance of the planned production testing.
As a result of the above the perforation and testing of the Kenai Loop # 4 well is now scheduled to commence in the next 5 days.
Wire line logging of the Kenai Loop # 4 well has identified multiple sands with indications of gas within the Tyonek Formation. This includes 5 separate sands that have an average thickness of 34' each ('A' Zones) and that compare in quality to known productive sands in the Cannery Loop field that adjoins Kenai Loop, with each of these sands having gas shows while drilling. Further testing is needed to confirm these zones can be commercially produced as they were at Cannery Loop, the Cannery Loop field has produced 180 BCF (30 MMBO).
Additionally the equivalent 9,700' and 10,000' zones that are productive in the Kenai Loop # 1 well and producing a combined 6.5 MMCFD (1083 BOEPD) were also encountered in Kenai Loop # 4 well with both of these zones having very good gas shows while drilling. The 3D seismic indicates these sands are continuous from the Kenai Loop # 1 well to the south-east. In the Kenai Loop # 4 well, the 9,700' sand is 24' thick and the 10,000' sand is 76' thick.
Additionally the Kenai Loop # 4 well has also encountered several additional sands that appear to be gas bearing ('B' Zones), but do not compare with known productive sands in either the Cannery Loop or Kenai Loop fields.