Buccaneer Energy Getting Ready to Spud Cosmo Well (Alaska)

Buccaneer Energy Limited has announced that the Alaskan Oil and Gas Conservation Commission (“AOGCC”) has inspected and certified the Endeavour jack-up rig for operations within Alaskan state waters, this is the final certification required by the Endeavour to be able to commence drilling operations.

The Company is currently preparing to spud the Cosmo # 1 well.

The Cosmopolitan Project (“Cosmo”) is located in 80’ feet of water approximately 30 miles to the north west of Homer. Cosmo is jointly owned with privately owned Fort Worth, Texas based BlueCrest Energy II, LP (“BlueCrest”) owning a 75% working interest and Buccaneer a 25% working interest, with Buccaneer acting as Operator on the project.

Cosmo # 1 Well Plan

The Cosmo # 1 well is a vertical well that has a targeted Total Depth of 8,000’ (“TVD”), the well is anticipated to take approximately 40 – 45 days to drill and test.

Surface casing will be set at 800’ after which the well will be drilled to the top of the Tyonek Formation (“Tyonek”) at 2,000’ where casing will again be set. The first gas Tyonek gas zone is expected to be intersected at approximately 2,150’ with multiple gas zones anticipated to be intersected down to 6,000’.

Casing will be set at 6,100’ before drilling through the oil bearing Starichkof, Hemlock and West Foreland Formations to TVD. The current plan is to core each of these oil formations to gather additional reservoir data so as to design the future development program for the oil formations. At this stage it is not planned to flow test the oil formations.

On completion of drilling and logging operations the well will be plugged back to the bottom of the Tyonek gas formation at 6,100’. Gas zones within the Tyonek Formation that are identified as potentially commercial through drilling and logging will then be perforated and flow tested.