Buccaneer Energy Ltd. (fka BCGFQ)

[Bobwins]

KENAI LOOP # 4 WELL – DRILLING REPORT # 6
Buccaneer Energy Limited (“Buccaneer” or “the Company”) is pleased to provide the following update on the progress of the 100% owned Kenai Loop # 4 well:
Time: 9.00am (Sydney) 24 October 2012 / 2.00pm (Anchorage) 23 October 2012.
Depth: 12,050’ Measured Depth (“MD”) / 11,733’ Total Vertical Depth (“TVD”)
Activity: Drilling bit change at 11,545’ MD. Drilling ahead to a total depth of 13,000’ MD
Comment: Multiple gas shows have been encountered since re-commencement of drilling from intermediate casing point.
The proven productive sands in the Kenai Loop # 1 well were encountered as expected in the Kenai Loop # 4 well. The 9,700’ sand in the Kenai Loop # 1 well is seen at 10,294’ MD in the Kenai Loop # 4 well, the 10,000’ sand in the Kenai Loop # 1 well is seen at 10,617’ MD in the Kenai Loop #4 well.
The log while drilling (“LWD”) characteristics of the above sands, as seen in the Kenai Loop # 4 well, are similar to the known proven pay in these two productive sands in the Kenai Loop # 1 well.
Kenai Loop # 4 well is also targeting gas pay from zones deeper than the two producing sands in the Kenai Loop # 1 well. To date, in addition to the 9,700’ and 10,000’ sand equivalents detailed above, at least four (4) additional zones are indicated as likely test targets. Two (2) of these zones are above the 9,700’ sand equivalent and two (2) are below the 10,000’ sand equivalent, these zones were identified by the analysis of mud log and LWD information.
The Cannery Loop Field (less than 2 miles south of the KL #1 well) has productive Tyonek Formation sands that have been identified on the Kenai Loop 3D seismic, with hydrocarbon indicators, which have yet to be intersected in the Kenai Loop # 4 well and are below the current drilled depth.
The above information is based on mud logs and LWD equipment. On completion of drilling operations wire line logs will be run after which a decision will be made as to what zones will be tested.
The well will have a bottom-hole location approximately 2,000’ north-west of the successful Kenai Loop # 1 well.
The targeted pay sands within the Tyonek included the 9,700’ and 10,000’ sands that are currently producing 6.0 million cubic feet per day (“MMCFD”) from the Kenai Loop # 1 well on a 9/64” choke. The majority