Alaska: Drilling in Cook Inlet Will Bring 500 New Jobs

Buccaneer Energy (BCC) is putting the final pieces in place to bring the first rig to the Cook Inlet in over 16 years. On Friday, April 1st Alaska Industrial Development and Export Authority, (AIDEA) unanimously approved resolution G11-07 allowing AIDEA to join a joint operating venture with Kenai Offshore Ventures (KOV) owned by Buccaneer Energy, which is an Australian Securities Exchange listed independent, and Ezion Holdings Limited of Singapore, which specializes in the development, ownership and chartering of strategic offshore assets.

It is expected that the rig will bring jobs to the Cook Inlet, allow companies to explore for much needed oil and natural gas, and bring a profit to AIDEA.

“Today’s Board action is the culmination of many months of hard work by a dedicated team of people devoted to the successful completion of thorough due diligence and complex negotiations for the benefit of Alaskans”

“Today’s Board action is the culmination of many months of hard work by a dedicated team of people devoted to the successful completion of thorough due diligence and complex negotiations for the benefit of Alaskans,” said AIDEA Board Chairman Mike Felix. “We are very pleased to take this important step with Buccaneer, and to move forward with much-needed drilling in the Cook Inlet.”

“AIDEA is perfect for this type of enterprise because its reason for being is to work both public and private sector issues to create jobs, tax bases and opportunities in Alaska,” said Curtis Burton, CEO of Buccaneer Energy.

Buccaneer will contract with KOV to drill its prospects in the Cook Inlet. Netherland, Sewell & Associates, a well respected Houston-based engineering firm, has certified 12.7 MMBOE in Proven & Probable (2P) Reserves at Buccaneer’s 100% owned Southern Cross Unit. It further certified an additional combined total 60.6 MMBOE of P50 Resources at Buccaneer’s Southern Cross and North West Cook Inlet Unit.

With projects identified that should keep the rig working for the next five years, this represents a major step forward for KOV and AIDEA. The benefits to the region include the creation of over 500 jobs, and access to the estimated 13-15 TCF of gas and 230 million barrels of oil that remain locked up in the Inlet.

About Buccaneer Energy Limited

Buccaneer Energy Limited is an E&P company based in Australia focused on combining the right people with right assets to allow for the progressive expansion of Oil and Gas production and reserves by acquiring significant working interests in low-cost, low-risk, development properties that possess significant undeveloped upside potential.

[mappress]

Source: Businesswire , April 6, 2011;