(MENAFN- ProactiveInvestors - Australia) Buccaneer Energy (ASX:BCC) has recorded an absolute open flow potential of 9 million cubic feet per day of gas from 10,300' sand in the final testing of its Kenai Loop-4 well onshore Alaska.
It successfully completed a four point test from one zone totalling 20 feet gross pay. The well was shut in for a period of 20 hours with tubing pressure peaking at 3,899 psi.
The long term deliverable production rate from the Kenai Loop-4 well is estimated to be 3-4 million cubic feet per day with the field's total production rate to increase to 10-11 million cubic feet per day.
The Kenai Loop-1 well performance continues to be stellar with the well producing 6.5-7 million cubic feet per day of gas, of which Buccaneer Energy is selling 5 MMCFD into its long term gas contract with ENSTAR at an annual weighted average price of US$6.24 per MCF.
The company has also sold on a temporary basis 1.5 MMCFD of gas to two smaller non-utility Cook Inlet users at US$15/MCF. Additional gas from the Kenai Loop field is capable of being sold into the spot market, where prices have reached SU$22/MCF during winter.
The well is expected to be in production within 3-4 weeks with the company initially using portable production equipment.
Separately, Buccaneer Energy has executed a US$20 million project finance facility with Richmond Hill Investment Co, a New York based investment firm, that will be used for capital expenditure at its Kenai Loop development including the Kenai Loop-4 well.
It has also secured US$30 million revolving credit commitment that gives it the ability to prefund the rebates it receives from the Alaskan government.
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