BlueCrest, Buccaneer Energy Zero In On Pioneer Natural Alaska Project
To acquire 2 main productive leases in former Cosmopolitan unit offshore Alaska in Cook Inlet.
Privately owned, Fort Worth, Texas-based BlueCrest Energy II LP and privately held, Houston-based Buccaneer Energy Ltd. plan to acquire the two main productive leases in the former Cosmopolitan unit (Cosmo) offshore Alaska from Pioneer Natural Resources Alaska Inc., a subsidiary of Pioneer Natural Resources Co., Dallas, (NYSE: PXD) for a undisclosed price.
BlueCrest will acquire 75% of the assets and Buccaneer will gain the remaining 25% and operatorship.
Cosmo is an undeveloped oil and gas field in 50 feet of water in the Cook Inlet of Alaska and is in close proximity to the shoreline at Anchor Point on the Kenai Peninsula. Cosmo has regional proximity to Buccaneer's other Alaskan assets and will utilize the capabilities of the Endeavour rig during the northern hemisphere winter.
Development of the Cosmo project involves two separate plans: a shallow gas development (3,000 to 4,000 feet) to be drilled with a jack-up rig; and a deeper oil development (6,000 to 8,000 feet) that can be exploited using directionally drilled wells from the shoreline.
Buccaneer’s share of the proved and probable reserves will be 13.8 million barrels of oil equivalent.
Pro forma, Buccaneer's Alaskan proved and probable reserves will increase from 17.5 million barrels equivalent to 31.3 million barrels equivalent, a 79% jump.
Buccaneer director Dean Gallegos says, “Not only does it significantly increase Buccaneer's oil and gas reserves but it also increases operational utilization and revenue performance of the Endeavour jack-up rig, demonstrating the strength of our Alaskan strategy. Further, the Cosmo acquisition fits very well in our Alaskan portfolio.”
Gallegos adds that as a more advanced project with an existing well and some infrastructure already in place, Cosmo provides nearer term oil and gas production potential than Buccaneer’s two other Cook Inlet offshore projects.
The deal is expected to close on March 30.