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.