Buccaneer Energy Ltd. plans to drill four onshore wells and three offshore over the next year, for a total of seven new wells in Alaska. The increased drilling, according to Bloomberg News, is due to Buccaneer's eagerness to "boost output."
The Sydney, Australia, oil and gas company entered the state in 2010 with the intent to hunt for petroleum resources in Southcentral Alaska and Cook Inlet. Since then, Buccaneer has been quite active.
In early September, the company caused an uproar in the coastal community of Homer after announcing plans to drill on a gravel pit in the grazing lands out on East End Road. Buccaneer officials have also been hosting tours of the "Endeavour Spirit of Independence," a jackup rig undergoing electrical and plumbing adjustments in Cook Inlet.
The company's natural gas sales agreement, which consists of an annual weighted price of $6.24 per thousand cubic feet of gas, allows it to provide up to 15 million cubic feet of gas per day, with the option to export. So far, Buccaneer has been producing around 5 million cubic feet a day. According to the numbers, the company is running a bit behind, hence its interest in "boosting" production.
Jim Watts, Buccaneer's Alaska president, told Bloomberg, "We’re to the point where we’re funding drilling. And this is where we’re going to see a step change in value as we move forward, especially over the next six to 12 months."
Watts added that Buccaneer seeks to produce as much natural gas as it can to help prepare Alaskans for the upcoming winter months, a time when production can be tight in Anchorage and surrounding areas.