Buccaneer Briefs North West Cook Inlet's Resources Estimation

Buccaneer provided the following resources estimation for the North West Cook Inlet project located in the Cook Inlet, Alaska and completed by Netherland, Sewell & Associates, Inc.

The following Prospective Resources reflect the Company's Working Interest in North West Cook Inlet. Buccaneer holds an 87.5% - 100.0% Working Interest in the project, with an average 98.2%

Working Interest:

  Low Estimate (P90) Best Estimate (P50) High Estimate (P10) Mean
MMBOE 16.1 45.9 86.9 49.4

Netherland, Sewell & Associates are a leading US based engineering company. Netherland Sewell were chosen to complete this report as they have experience in the Cook Inlet, having completed reserves estimations for a number of multi-national energy companies that operate assets offshore in the Cook Inlet.

North West Cook Inlet Highlights

The North West Cook Inlet project is in approximately 100' water depth with no unusual technical hurdles to drill and develop.

  • The lease adjoins ConocoPhillips North Cook Inlet field that is in production and has produced 1.8 trillion cubic feet (TCF) of gas.
  • The Company's lease offsets an earlier well drilled in the western portion of the North Cook Inlet Field (ConocoPhillips) that produced 85 BCF of gas (Phillips # A-13), this well is less than 1 mile from the lease boundary.
  • The majority of production from the North Cook Inlet field has come from the Sterling sands which are above 6,000' in depth. The slightly deeper Beluga Formation will also be gas bearing and should be mostly or totally un-drained in the north-western portion of the structure which makes up the Northwest Cook Inlet Prospect.
  • The Prospect also presents a deeper oil opportunity. Field discovery wells tested oil in the Lower Tyonek and Hemlock Formations that have never been produced in the field and that would require a deeper, 14,000 foot exploratory test.
  • Five wells drilled by Phillips, Shell, and Arco found the deeper oil sands. The Shell well is the most northerly of these tests, and it found and tested oil at the rate of 2270 BOPD from these sands, and is approximately 1 mile from the Prospect.

A report for the Southern Cross Project (North Middle Ground Shoal) is expected to be completed by Netherland Sewell in the next 30 days.