Buccaneer Energy Limited advise that production from its 100% owned Kenai Loop #4 well commenced on Sunday, February 10, 2013. The Kenai Loop #4 well is currently producing at an initial rate of 2.0 million cubic feet per day ('MMCFD').

The long term deliverable production rate from the Kenai Loop #4 well is estimated to be 3.0 - 4.0 MMCFD. Kenai Loop #4 gas production is in addition to the Company's current production of 6.5 MMCFD from the Kenai Loop #1 well. The majority of the current total production of 8.5 MMCFD (1,400 BOEPD) is being sold to the local gas utility Enstar.

This production rate is currently limited by the installed temporary production facilities. In November 2012, the Company commenced the installation of permanent production facilities and pipeline connections at Kenai Loop; however, severe weather conditions meant that the build out of these was suspended in December 2012.

Tags: Buccaneer Energy Ltd.