Buccaneer Energy will acquire two main production leases in the former Cosmopolitan Unit (Cosmo) from Pioneer Natural Resources Alaska. Buccaneer plans to develop the ice-free, oil and gas field that is located in 50ft water depth in the southern part of the Cook Inlet of Alaska, near the shore at Anchor Point on the Kenai Peninsula.
Buccaneer will act as operator of the project; a partnership with Fort Worth, Texas based BlueCrest Energy II, who will have a 75% interest. Development will involve a shallow gas development of 3,000 to 4,000ft to be drilled with a jackup and a deeper development of 6,000 to 8,000ft via directionally drilled wells from the shoreline. In late 2012, Buccaneer plans to use the jackup Endeavour to drill an offshore well to quantify the gas and oil zones. Development should begin by the end of the year with the drilling of oil wells from the existing onshore production site and drilling offshore water injection wells for reservoir pressure maintenance. Offshore gas wells will be drilled and connected to the existing onshore site which will be connected to ENSTAR’s gas transportation line.