Buccaneer's Pompano Production Resumes

Pompano Project
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Pompano Project
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Buccaneer Energy advised that the Pompano-1 well was shut-in awaiting a remedial work-over. While this well was shut-in reservoir pressures were measured and were expected for both the upper (6700 Sand) and lower (B Sand) completions.

Pompano SL 103229 #1 (Pompano-1)

The work-over is necessary to rectify a poor cement job between the B Sand (50 feet net pay gas-bearing and productive) and B-2 Sand (water-bearing). The influx of water behind pipe from the B-2 Sand brought sand which formed sand bridges in the B Sand completion that inhibited gas production.

Additionally, sand bridges had also formed in the upper 6700 Sand completion restricting production. It is intended to install a gravel pack to the 6700 Sand completion during the proposed work-over so as to ensure the completion can produce at commercial rates without forming sand bridges in the future.

During the last week the sand bridges have cleared without any external intervention and production has resumed at approximately 1.0 million cubic feet per day. While there is still potential that the sand bridges will reform prior to installing the gravel pack the unexpected resumption of production proves that the reservoir is not depleted and the sand bridge issue can be rectified.

The Company has been assessing a work-over solution proposed by Halliburton which is significantly more cost effective than a traditional cement squeeze using a work-over rig. The Company is finalizing its remedial work-over plans with its project partners with a view of utilizing this method.

It is expected that on completion of the work-over to the B Sand completion and installation of the gravel pack to the 6700 Sand completion, production of 5-7 million cubic feet per day from the Pompano-1 well will be restored.

Pompano SL 103230 #1 (Pompano-2)

This well is continuing to perform to expectations.


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