Buccaneer to Become Operator of Cosmo Project in Alaska

Buccaneer Energy Limited has, together with BlueCrest, executed the final closing documents with Pioneer Natural Resources Alaska, Inc. for the acquisition of the Cosmopolitan Project (“Cosmo”) in Alaska, USA.

Cosmo is being jointly acquired with privately owned Fort Worth, Texas based BlueCrest acquiring a 75.0% working interest, with Buccaneer acquiring a 25.0% working interest and assuming operatorship of the project.

Additionally, BlueCrest and Buccaneer have executed a Joint Operating Agreement (“JOA”) that formally designates Buccaneer as the Operator of the project.

Cosmo is an undeveloped oil and gas field located in 50 feet of water in the Cook Inlet of Alaska and is in close proximity to the shoreline at Anchor Point on the Kenai Peninsula. It has regional proximity to Buccaneer’s other Alaskan assets and will utilise the capabilities of the Endeavour rig during the northern hemisphere winter.

A consulting firm Ralph E Davis which conducted an independent reserve estimate on the project, found that Cosmo contains an estimated 55.2 million barrels of oil equivalent (“MMBOE”) of 2P reserves (13.8mmboe net to Buccaneer). The 2P Reserves of Cosmo increase Buccaneer’s independently assessed Alaskan 2P Reserves from 17.5 million barrels of oil equivalent (“MMBOE”) to 31.3 MMBOE.

Development drilling at the Cosmo project will begin in the northern hemisphere winter of 2012 and continue through to 2014.

Offshore gas wells will be drilled and tied back to the existing onshore site which will be connected to ENSTAR’s recently completed gas transportation line.

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Offshore Energy Today Staff, August 16, 2012