Project Profile
Value: US$200 million
Location: Eastern Cook Inlet Basin
Reserves: between 35 - 78 BCF gas with most likely reserves of 52 BCF gas
Start-up Year: December 2011
The Kenai Loop project is an onshore gas play located in the eastern Cook Inlet Basin in the northern part of the Kenai Peninsula near the city of Kenai. Buccaneer Alaska had been aware of the potential of the area for some time and the company commenced leasing activities to secure the acreage in July 2010. The company acquired 100% working interest (80% to 86.5% net revenue interest) in approximately 7,734 acres from multiple landowners. In 2014, AIX Energy acquired nearly all of the assets of the Buccaneer Energy Ltd. in a bankruptcy auction.
Features of the Kenai Loop Project are as follows:
• Lies on a ridge between the Kenai Cannery Loop field (175 BCF gas production) and Beaver Creek oil and gas field (6 million barrels oil and 205 BCF gas production);
• Seismic amplitude anomalies in the same productive intervals as the above fields;
• Several control wells and 200 miles of 2D seismic data were used to map Kenai Loop and, similar to the surrounding fields, there are multiple stacked pay zone possibilities between 5,000 and 10,000 feet;
• Resource potential per well is 5 BCF gas and the in-house estimated reserve range is between 35 - 78 BCF gas with most likely reserves of 52 BCF gas. Initial rates per well are estimated to be in the 5 to 10 million cubic feet per day range;
• The first well will be a step-out well from the Kenai Cannery Loop field;
• located 3 miles to the nearest gas sales pipeline;
• Drilling and completion costs are estimated at approximately $7.0 million gross and $2.5 million after the ACES cash rebate;
• Strong local market for gas in the area.
Future developments include drilling Kenai Loop No. 3 well in 3Q 2011, laying pipeline, installlation of processing facilities and placing the two wells on production. The current development plan includes 3 additional wells and a production plateau rate of 25 mmcfgpd.
AIX Energy acquired the producing Kenai Loop gas field. The company leases 1,048 acres of state lands in the vicinity of the Kenai Loop field and operates four wells - Kenai Loop 1-1, Kenai Loop 1-2, Kenai Loop 1-3 and Kenai Loop 1-4. (June, 2015)
Operator:
AIX Energy: Operator with 100% interest
Contractor:
Archer Drilling: Operator of the Adriatic X
Fugro Chance Inc. and Fugro GeoServices, Inc.: Positioning projects
Ralph E Davis: Independent reserve evaluation
Transocean: Has sold the GSF Adriatic XI unit to Buccaneer
Off-take companies:
ENSTAR
ConocoPhillips