Buccaneer boosts Kenai output

by on October 19, 2012 4:59 am BST

The Australia-listed company said the choke was increased to 9/64-inches to achieve the higher output rate.

It added that there was the potential for further rate increases upon the completion of drilling and testing of the Kenai Loop-4 well, which was spudded last month. It is expected to take 35 to 40 days to be drilled deeper than Kenai Loop-1, which was drilled to about 3249 metres.

Kenai Loop-1 started producing and selling gas in January. It was consistently producing on a 5/64-inch choke at a rate of five million cfd since late February.

In addition, Buccaneer announced on Friday the execution of a new gas sales agreement with a third party to sell one million cfd, at US$7.50 per million cubic feet, between 15 October and 15 December.

The company will also delivery additional supply to the local gas utility, ENSTAR, under an existing gas sale agreement with an annual weighted average price of US$6.24 per million cubic feet.