Buccaneer gets ConocoPhillips North Cook Inlet deep rights

Buccaneer Energy Ltd., Sydney, has taken a farmout from ConocoPhillips Alaska that gives Buccaneer the right to earn a 100% working interest in the deep rights on 23,368 acres in the North Cook Inlet Unit in Alaska.

Buccaneer agreed to the division of the farm-in area into two acreage blocks, Blocks A and B. Buccaneer must spud a well in either block by Dec. 31, 2014, and a second well in the remaining block by a year later.

Buccaneer is revising its drilling schedule for the next 2 years and plans to spud the first well in the southern Block A using its Endeavour jack up in the project.

The North Cook Inlet Unit adjoins Buccaneer’s North West Cook Inlet Unit, and as part of the transaction Buccaneer has licensed existing 3D seismic owned by ConocoPhillips. The 3D license covers both the area subject to the Deep Oil Rights Agreement and parts of the North West Cook Inlet Unit, including the areas over which Buccaneer is permitted to drill two wells.

North Cook Inlet Unit has produced nearly 1.9 tcf of gas from the shallow Sterling and Beluga formations since the 1960s and is held by gas production that has been used mainly to supply ConocoPhillips’ 100% owned LNG facility. ConocoPhillips will continue to own the shallow gas production.

The farmout entails no upfront cash consideration, and ConocoPhillips retains an overriding royalty interest.

Related Articles

INTERNATIONAL BRIEFS

01/01/1990 WESTCOAST ENERGY INC., Vancouver, B.C., agreed to buy the utilities and propane business of Inter-City Gas Corp. (ICG), Winnipeg, Man., for $720 mi...

OWNERSHIP QUESTIONS CAN STYMIE DEVELOPMENT OF COALBED METHANE

01/01/1990 Although the technology exists for commercial recovery of coalbed methane, production has been hindered because of the legal quandary as to ownersh...

OIL FLOW RISING IN E. CHINA REGION

01/01/1990 Production is building from an oil producing area in the lower reaches of the Yangtze River in eastern China's Jiangsu Province. The northern J...

GAS EXPLORATION FANS OUT MIN ARKOMA BASIN

01/01/1990 Gas exploration is heating up in the South Central Arkoma basin's pre-Pennsylvanian formations. Several operators are targeting Siluro-Devonian...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected