The gas sales contract is expected to allow gas sales to commence once pipeline and facilities construction is completed in December 2011.
ENSTAR will acquire gas at contract rates, when the Cook Inlet Natural Gas Storage facility (CINGSA) is completed.
Under the contract, Buccaneer has committed an initial delivery target of 12bcf and up to an additional 19.5bcf for a total of 31.5bcf.
As part of the contract, Buccaneer will spud the second well at Kenai Loop by 1 November 2011 and a third by 1 November 2013.
