We previously reported that Buccaneer Alaska is working to make their final jack up rig upgrades, as well as, finalizing permitting for work at the cosmopolitan unit in the southern Kenai Peninsula.
Starting this winter, Buccaneer Alaska plans to drill vertical offshore wells to evaluate the shallow gas formations known to be present at the Cosmopolitan prospect. According Buccaneer’s Ralph E. Davis, the gas prospect has been estimated to have gas with a proved and probable reserve estimate of 90 billion cubic feet. If the gas formations are determined commercial during the winter drilling program this year, new gas supplies could be flowing into the South Central Alaska market in 2014.
In the coming months, Buccaneer plans to drill wells to evaluate the oil potential of the prospect after the Department of Environmental Conservation completes its review and approval of Buccaneer’s comprehensive oil spill response plan.
Buccaneer Alaska President Jim Watt said that “Buccaneer is working through the regulatory approval process, and we appreciate the guidance we have received from state and federal regulators,” as “Buccaneer has made a long-term commitment to Alaska. We see a real future here for the company, and we are intent on working cooperatively will the state to establish a long-term business that will support good jobs, provide tax and royalty revenues to the state and local governments, and, most importantly, meet the energy demands of Alaska in a safe and environmentally friendly manner.”