Buccaneer Energy Limited advise that ENSTAR has commenced injecting gas into the Cook Inlet Natural Gas Storage, Alaska (CINGSA) facility located immediately south of the Company's Kenai Loop project.

The Company is currently producing 5.1 million cubic feet per day ("MMCFD") from the Kenai Loop # 1 well on a 5/64" choke and is seeking to increase that production rate for delivery to ENSTAR in the short term. ENSTAR is currently injecting 100% of the gas it receives from the Kenai Loop # 1 well into CINGSA storage facility.

The Company's gas sales contract with ENSTAR entails the Company delivering a minimum of 5.0 MMCFD and a maximum of 15.0 MMCFD to ENSTAR, at an annual weighted average price of US$6.24 / MCF.

Tags: Buccaneer Energy Ltd.