Buccaneer Energy Ltd. (fka BCGFQ)

[Bobwins]

The testing of the new oil zones is probably to provide info to the reserve engineers so they can assign some reserves to the new zones. Good news that it is unexpected and represents new potential reserves and production for Buccaneer.



COSMO # 1 WELL – DRILLING REPORT # 9
Buccaneer Energy Limited (“Buccaneer” or “the Company”) is pleased to provide the following update on the progress of the Cosmo # 1 well in which the Company has a 25% working interest:
Time: 9.00 am (Sydney) 16 July 2013 / 3.00 pm (Anchorage) 15 July 2013.
Depth: 7,599’ Total Vertical Depth (“TVD”)
Activity: Drilling completed at 7,599’ Total Depth (“TD”).
Wireline logs have been successfully run from 5,479’ to 7,599’. A total of 60 side wall cores have been obtained, 1 gas and 5 oil samples were taken and 27 pressure results were obtained using Modular Formation Dynamics Tester (“MDT”).
The Company is currently preparing to run and cement a 7” liner. Although not originally planned, the liner is now necessary to allow testing of the newly discovered oil zones above the previously-known oil reservoirs that form the existing Reserves. On completion, the production testing program will commence.
Summary of Results
As indicated from logging, MDT and sidewall cores, the Cosmo # 1 well has confirmed the presence of an extensive hydrocarbon column covering numerous formations above the previously known oil reservoirs. The Cosmo # 1 well was drilled on the crest of the structure and encountered geologic formations 200 - 300’ higher than those encountered by the Starichkof State # 1 well. The Cosmo # 1 well has encountered oil bearing sands ~400’ stratigraphically higher than any other wells drilled on the structure to date.
The Tyonek formation, which contained all exploratory targets, was found to have 488’ of indicated oil and gas pay, including 18 gas zones and 8 oil zones.
The previously-discovered Starichkof and Hemlock formations were confirmed to contain oil in this well. The Starichkof formation was found to have 43’ of indicated oil pay, and the Hemlock formation was found to have 149’ of indicated oil pay.
Not all of the zones intersected will be flow tested; however, the newly-discovered zones will be high graded and a testing program implemented in conjunction with BlueCrest Energy Inc. who holds the remaining 75.0% working interest.
Well Plan:
The Cosmo # 1 well is a vertical well that has been drilled to a Total Depth of 7,599’ (“TD”).
Surface casing was set at 800’ after which the well was drilled to the top of the Tyonek Formation (“Tyonek”) at 2,055’ where casing was again set. The 9 5/8” casing was set at 5,479’ MD. A 7” liner is to be set from TD to the bottom of the 9 5/8” casing.
The Upper Tyonek gas zones are behind pipe, and the plan is to test several gas zones. Evaluation of the new oil zones may warrant additional testing.
The well will then be temporarily abandoned as a future gas producer.