Buccaneer Energy will be advancing the next phase of development in the Fouke area of the Pine Mills field.
Leveraging the terms of its new offset lease, the company is preparing to implement a secondary recovery (waterflood) based on dedicated injection wells, Turner #1 and Daniel #1. This decision is the result of a technical evaluation of the recently drilled Allar #1 well.
The company is considering the waterflooding approach, as it is known to work especially in the Pine Mills field and surrounding areas. Primary recovery typically ranges between 5% and 20%, of the original oil in place, averaging around 15% in the region. Waterflood promises recovery chances of as much as 30% and 50% of the OOIP. This gives reason to anticipate that recoverable volumes in the Fouke area can go up by two to three times, with current estimates indicating 667,000 to 1,002,000 bbls could ultimately be recovered.
To commence waterflood activities, however, it is necessary to produce before the Texas Railroad Commission the formation of a "waterflood unit" comprising all leaseholders and royalty owners within the proposed area. Potentially, a six-month activity, this will allow to reinstate production from Turner #1, which is expected to deliver a modest contribution to current field output while preparatory engineering and regulatory work progresses.
Paul Welch, Buccaneer Energy's Chief Executive Officer, said, "The decision to initiate a waterflood in the Fouke area marks a key step forward in maximising long-term value from our Pine Mills assets. Waterflooding has a proven track record in these reservoirs, and we believe the Turner #1 and Daniel #1 wells provide ideal injection points to support a highly effective recovery scheme.
We are confident that this programme will materially increase recoverable reserves and enhance the field's production profile. We look forward to updating investors as we progress the regulatory and technical workstreams required for implementation."
An international oil & gas exploration and production company with development and production assets in Texas, Buccaneer owns a 32.5% Working Interest in the Fouke area of the Pine Mills field.
