Buccaneer Update
Buccaneer was founded in 2006, and is based in Sydney, Australia. The Company operates in the U.S. through its wholly owned subsidiary, Buccaneer Resources LLC, a Texas limited liability company, with offices in Houston, Texas.
The Company completed an initial public offering on the Australian Stock Exchange on November 19, 2007, raising AUD$20 million (US$17 million ). On July 3, 2008, the Company finalised a US$50 million Credit Facility with Macquarie Bank Limited, to finance development of Pompano and the Company’s existing drilling program.
In September/October 2009 the Company finalised an entitlement issue raising AUD$5.3 million with which it repaid its remaining debt under the Credit Facility with Macquarie Bank. At the same time Macquarie Bank agreed to extend the Company a 12-month AUD$1.0 million loan.
Buccaneer commenced exploitation of its first producing asset, the Pompano field, where two wells brought on production in early 2008 and are still generating positive cashflow. A work-over of one of those wells was successfully completed in September 2009 to restore full production.
The Company drilled a third Pompano well in August 2008 and discovered one productive shallow zone with the deeper main target reservoir not being encountered. The well has been suspended until commodity prices improve to allow the shallow zone to be economically viable.
Pompano clearly illustrates Buccaneer’s business model: the Company acquired Pompano as a previously produced shallow water GoM Shelf asset with significant booked reserves, potential for reserve growth and exploration upside and existing infrastructure.
The Company’s first well found three pay intervals and was placed on production 17 days after completion (an exceptionally short time to bring a well from completion to revenue generation). The Company’s second Pompano well was also successful and placed on production less than one month after completion.
Buccaneer’s approximate F&D cost for the first two Pompano wells is a low $1.60/mcfe. Click here for more information on this project.
Buccaneer is currently planning to drill its first well at its 52% owned onshore oil project Lee County in mid November 2009. Drilling time is estimated to take 3 weeks click here for more information on this project.
In September/October 2009 the Company finalised an entitlement issue raising AUD$5.3 million with which it repaid its remaining debt under the Credit Facility with Macquarie Bank. At the same time Macquarie Bank agreed to extend the Company a 12-month AUD$1.0 million loan.
Buccaneer commenced exploitation of its first producing asset, the Pompano field, where two wells brought on production in early 2008 and are still generating positive cashflow. A work-over of one of those wells was successfully completed in September 2009 to restore full production.
The Company drilled a third Pompano well in August 2008 and discovered one productive shallow zone with the deeper main target reservoir not being encountered. The well has been suspended until commodity prices improve to allow the shallow zone to be economically viable.
Pompano clearly illustrates Buccaneer’s business model: the Company acquired Pompano as a previously produced shallow water GoM Shelf asset with significant booked reserves, potential for reserve growth and exploration upside and existing infrastructure.
The Company’s first well found three pay intervals and was placed on production 17 days after completion (an exceptionally short time to bring a well from completion to revenue generation). The Company’s second Pompano well was also successful and placed on production less than one month after completion.
Buccaneer’s approximate F&D cost for the first two Pompano wells is a low $1.60/mcfe. Click here for more information on this project.
Buccaneer is currently planning to drill its first well at its 52% owned onshore oil project Lee County in mid November 2009. Drilling time is estimated to take 3 weeks click here for more information on this project.
Commodities Prices
ASX Stock Price
Subscribe
Enter your email address below to subscribe to Buccaneer email updates.
