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Kenai gas well exceeds expectations

Posted: June 2, 2011 - 9:23am

Buccaneer Energy Limited announced Wednesday that its well near Walmart exceeds expectations on tests done so far.

According to the company’s announcement, the well’s long-term natural gas production will be about 6 to 8 million cubic feet per day.

The well could produce that much gas for about two years, according to the announcement.

At Wednesday’s joint Kenai and Soldotna chambers of commerce lunch, area state Sen. Tom Wagoner, R-Kenai, said those numbers are a good sign for the Kenai Peninsula.

“That’s a lot of gas,” he said. “That’s a good gas well.”

The absolute open flow potential was calculated at 33.2 million cubic feet per day, which is higher than the company expected, according to the announcement. The higher the value, the better for gas extraction.

In its announcement, Buccaneer said the company expects a net revenue of about $1.05 million per month if the well produces 7 million cubic feet per day. That’s based on a predicted Alaska gas price of $7 per million cubic feet.

The company’s results are based on the two zones tested in the Upper Tyonek Formation. The announcement said it has 14 more to test in the 8,900 acre area it has leased, which includes the Beluga and Upper Tyonek formations. The closest wells that were already drilled in the area are about a mile away in the Cannery Loop field.

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spwright
1376
Points
spwright 06/02/11 - 03:49 pm
0
0
Good News for Once

Thur. 6/2/2011
FINALLY some Good News about Natural Gas on the Peninsula !
Will this do anything to REDUCE the Cost of Our Enstar Natural Gas Bill each month ?

Anyone got a Answer for that Question ?

Retiree SPW "Airborne"

looseleif
11
Points
looseleif 06/02/11 - 09:02 pm
0
0
Makes no sense!

Molly Dischner's article makes no sense! Either her math, spelling, or her grammar is faulty or the story is so incomplete that it fails the standard. If the well produces 7 Million (M) cubic feet per day, and the gas is worth $7 (seven, no zeros) per million (M) cubic feet, that's $49.00 per day; that's about $1,500.00 (fifteen hundred) per month. If you multiply that by the 14 more wells Buccaneer hopes to bring in - which the article does NOT state - then that's about $21.2 Thousand (T) dollars per month. So where does the expected "net revenue of about $1.05 million per month" come from? That is NOT "gross revenue" but "NET revenue" according to the article. First question: What is the gross revenue, considering the extreme expense of drilling? Second question: is the "mark-up percentage" therefore in the Millions (M) or the Billions (B)?
Sorry, but that's what the story says. Read it again, Airborne. There HAS to be something badly wrong or seriously incomplete about this story.
looseleif

kenaijack
0
Points
kenaijack 06/03/11 - 05:39 am
0
0
Price of Gas

The correct price is $7 per 1000 cu ft.

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