Buccaneer Energy - Director Resignations
Buccaneer Energy Limited (“Buccaneer” or the “Company”) advises that Messrs Davies, Scott and Adams have tendered their resignations as directors of the Company effectively immediately.
These three directors (which represented 50% of the Board of the Company) were nominated by two Singaporean based shareholders Pacific Hill International and Harbour Sun Limited who now hold approximately 5.5% of the Company’s issued capital.
At that time the Company maintained that the appointment of the three nominated directors was an attempt by Pacific Hill International and Harbour Sun Limited to gain control of the Company by controlling its board. Given the resolutions to remove the Executive Directors were unsuccessful this attempt failed, but meant that Pacific Hill International and Harbour Sun Limited board representation was not proportionate to its 5.5% interest in the Company.
The Company will be now the engage the services of an executive search firm to indentify suitable independent non executive directors with the skills and experience to assist the Company in its development plans.
The Company will now progress discussions with Meridian Capital International Fund (“Meridian”), who has a 19.9% interest in the Company, in respect to the appointment of their nominee consistent with the Subscription Agreement executed with Meridian on 28 June 2013.
The next 1-3 years is anticipated to be a significant period of growth for the Company as it seeks to drill and develop offshore and onshore projects with total independently certified Proven and Probable (2P) Reserves of 67.0 million barrels of oil equivalent (“MMBOE”), 2C Contingent Resources of 23.9 MMBOE and P50 Prospective Resources of 64.4 MMBOE. The current directors see that the appointment of directors with the necessary skills and experience as imperative to the Company’s development.
BUCCANEER ENERGY LIMITED
Mr Dean Gallegos
Buccaneer Energy Limited is an Australian listed company focused on developing its 100% owned oil & gas assets in Alaska. The Company's flagship projects are a series of onshore and offshore developmental and exploration prospects in Alaska’s Cook Inlet.
Buccaneer Energy has a 3 pronged cashflow strategy:
- Developing the 100% owned Kenai Loop onshore gas project with independently assessed 6.4 MMBOE in 2P Reserves;
- Operating a offshore jack-up rig for use by third parties in the Cook Inlet; and
- Developing its 100% owned offshore Cook Inlet projects that have independently assessed 150.8 MMBOE in 2P Reserves / P50 Resources using the acquired jack-up rig.
Buccaneer Energy has a 50/50 joint venture with Singaporean-based Ezion, a leader in the development, ownership and chartering of strategic offshore assets, and the Alaskan Industrial Development and Export Authority (“AIDEA”). This joint venture has acquired the jack-up rig “Endeavour” which is capable of drilling in all areas of the Cook Inlet, the Beaufort Sea and the Chukchi Sea. Mobilisation of the Endeavour into the Cook Inlet was completed in late August 2012.
The Alaskan Government is supportive of oil and gas in the Cook Inlet. There are a number of fiscal incentive programs for exploration and development in the Cook Inlet.
Buccaneer Energy has two onshore wells at Kenai Loop producing at a combined rate of 10.0 MMCFD (1,666 BOEPD). The Company expects this to increase to 11 - 12 MMCFD (1,833 – 2,000 BOEPD) if a third gas sales contract can be finalised in the coming months.
Buccaneer Energy also has major working interests in Texas and the Gulf of Mexico, USA.
Posted: August 14, 2013