Buccaneer Sells Off Stake in Alaska Projects

     Buccaneer Energy has a new major partner to work with as it drills for oil and gas in and around Cook Inlet. In a news release Thursday, Buccaneer officials announced a deal with California-based EOS Petro, Incorporated. 

     Under the deal, EOS will have a 50 percent stake in several of Buccaneer’s Alaska projects, including the Southern Cross Unit and on-shore activities at the West Eagle Unit east of Homer.

     In return, EOS will pay 100 percent of the costs associated with the first two wells in each of the projects. Buccaneer will keep a 50 percent working interest and will be the operator of each of the projects. Officials with both companies estimate that the total cost for EOS will be between $150 million and $200 million.

     All of the offshore wells will be drilled using the Endeavour jack-up rig, and all the onshore wells by the Glacier onshore rig. Buccaneer currently has both of these rigs under long-term contract.

     Buccaneer will keep a 100 percent interest in its Kenai Loop project near the Kenai Wal-Mart and a 25-percent interest at the Cosmopolitan Unit near Anchor Point, where the Endeavor rig has been drilling this year.

     Buccaneer announced earlier this week that the Endeavour rig had found a gas deposit at Cosmo, at a depth of about 4,300 feet. The well tested gas at a maximum rate of 7.3 cubic feet per day and gas was flared at the well location.

     Officials say they expect to move the Endeavor rig to the Southern Cross Unit sometime next week.