Strong Currents Force Buccaneer to Move Jack-Up Rig to New Location (USA)

Buccaneer Energy Limited has announced that, in relation to the Southern Cross Unit # 1 well in Alaska, it is moving the Endeavour rig to a new location.

After completing the installation of the 30″ diverter and well control equipment on the conductor pipe, some settling of the rig’s legs into the seabed was noted. The rig was levelled and side scan sonar was used to evaluate the seabed conditions, evidence of movement of sand behind and around the bottom of the rig legs was observed which is also called “scouring”.

This movement is caused by the strong currents during incoming and outgoing tides. The current location was surveyed and approved by various State agencies prior to mobilising to the location; the current issue is not uncommon in shallow offshore drilling.

A new drilling location approximately 450′ south-east of the current location has been surveyed using sonar and as an added precaution the Company mobilised divers to sample the seabed to ensure it would be suitable. The new location has been approved by the required State agencies and tugs are being mobilised to the Endeavour. It is anticipated that the rig will be moved to the new location on or around the 29 September 2013.

Once the rig is at the new location, a new conductor pipe will need to be driven and preparations will be made to commence drilling operations.

The Southern Cross Unit is currently 100% owned by the Company. The Company has executed a farm-out agreement with Los Angeles based EOS-Petro, Inc. (“EOS”) where EOS will earn a 50% working interest by paying 100% of the well costs of the first two wells at the Southern Cross Unit, including the Southern Cross # 1 well.

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Press Release, September 24, 2013