Buccaneer Energy Ltd. said its 50% owned subsidiary Kenai Offshore Ventures LLC completed the $68.5 million acquisition of the GSF Adriatic XI jack up rig from Transocean Offshore Resources Ltd.
Buccaneer plans to move the rig and commence drilling in its Southern Cross project in Cook Inlet, Alas., in April or May 2012. Currently the rig is in the Keppel shipyard in Singapore, awaiting modifications.
Singapore-based Ezion Holdings Ltd. is Buccaneer's partner in Kenai Offshore. Kenai has changed the name of the rig to Endeavour-Spirit of Independence.
The Endeavour is a Marathon LeTourneau 116-C jack up, constructed in 1982 and upgraded in 2004. The rig is capable of drilling in up to 300 ft of water and has 10,000 psi and 15,000-psi blowout preventers.
Netherland, Sewell & Associates has estimated that Buccaneer's leasehold in Cook Inlet contains 73.3 million boe in combined 2P reserves and P50 resources.
Buccaneer expects to drill the first well in its wholly owned Southern Cross project, on which Netherland, Sewell & Associates has estimated proven and probable (2P) reserves of 12.7 million boe and an additional P50 resources of 14.7 million boe.
The Southern Cross project is in about 50 ft of water.
Buccaneer's initial well is an offset of several wells on its lease that tested oil and gas but were never produced. The well is about 1,700 ft from the Pan Am 17595 No. 3, drilled in the 1960s, which tested 230 ft oil and 1,080 ft of mud cut oil from the Lower Tyonek and 165 ft of oil from the Hemlock.
The well will be structurally high to the Pan Am 17595 No. 2, also drilled in the 1960s, which tested the Lower Hemlock and recovered gas to surface followed by fluid from which 990 ft of clean oil was recovered.
Other wells on the lease tested gas from the Upper Tyonek.
Archer Drilling will manage day to day operations of the rig.
Also in Alaska, Buccaneer has drilled the onshore Kenai Loop No. 1 well and tested it at 6-8 MMscfd (OGJ Online, June 1, 2001). The company is currently drilling the second well at Kenai Loop and expects the full field development to have at least 10 producing wells in 2012-13.