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Buccaneer Energy Hits Dry Well Outside Homer

By Matthew F Smith, Digital Producer, msmith@ktuu.com
Published On: Feb 17 2014 02:28:44 PM AKST
West Eagle

Image by Buccaneer Energy

ANCHORAGE -

A Texas-based oil company is shutting down one of its Kenai Peninsula drilling operations after its well came up dry.

Buccaneer Energy announced Monday that, after drilling down to a depth of 3,700 feet, “there were no indications of hydrocarbons” at its West Eagle prospect.

By September the company had built its drilling pad, and by late October had moved in drilling equipment. Buccaneer spokesperson Richard Loomis said, while the results don’t “condemn the acreage,” he said it will likely be the end of the company’s efforts at that particular drill site.

“I don’t think we’ll peruse another drill effort at this time. We’ll focus our efforts on Kenai Loop and Tyonek Deep,” Loomis said.

Those two parcels, onshore near Kenai and offshore in the Northern Cook Inlet, respectively, continue to be productive wells for the company, Loomis said. The Kenai Loop produces 8.7 million cubic feet per day, with proven and probable reserves of 2.3 million barrels. The Tyonek Deep prospect contains 29.9 million barrels of proven and probable reserves.

Loomis said the West Eagle lease was a bit of a gambit, but a relatively inexpensive one at that, with a total drilling cost of $9.4 million that didn’t require roads of other infrastructure to be built. In addition, the company is filing for ACES credits and other rebates that could see as much as $5.09 million in funds returned, resulting in a $4.35 million price tag.

“If one was gonna come up dry, I’m glad it’s this one,” he said.

Loomis said the company’s next move is to plug and abandon the well.