Buccaneer provided an update for the Alexander # 1 well located at the Lee County project, approximately 120 miles west of Houston.

Since 2200 EST Thursday September 9, until 2200 EST Sunday September 12, the well has produced 2,846 barrels of oil for an average flow rate of 948 BOPD. The oil is 31 degree API, a light crude oil, no formation water has been produced. Gas is still being produced and flared. A total of 2,510 BO have been sold to date.

The Alexander # 1 well depth is currently at 5,727'. The current oil production has been interpreted from mud logs as being from a 20' thick interval (5,640' – 5,660') in the middle of the Austin Chalk.

There is approximately 300' of the Austin Chalk expected remaining to drill. The current intention is to kick off the 2,700' horizontal at the current TD of 5,727'. In the process of building the angle for the horizontal, the lower sections of the Austin Chalk will be tested. It is no longer the intention to deepen this well to the Eagle Ford Shale.

As is typical of the Austin Chalk, the production rate is expected to decline as the tubing pressure declines, and then pumping will be required. However substantially higher initial production rates and higher reserves can be expected if the horizontal hole is successful in intersecting multiple fracture zones such as the one encountered so far.

Tags: Buccaneer Energy Ltd.|