Buccaneer Energy Limited (“Buccaneer” or the “Company”) is pleased to advise that it has received a rebate of US$14.2 million under Alaska’s Clear and Equitable Share (“ACES”) rebate program. This brings the total to US$30.5 million that the Company has received from ACES since commencing operations in Alaska in the middle of 2010.
The US$14.2 million will be used to repay the Company’s ACES Revolver which has a drawing capacity of US$25.0 million and is used to pre-fund the ACES rebate on project expenditure, limiting the amount of capital used from other cash sources. The ACES Revolver will have an outstanding balance of US$3.6 million, leaving US$21.4 million available to be drawn down. The Company has not drawn any amounts from the ACES Revolver for Cosmo # 1 well expenditures.
In addition, the Company has an additional US$11.2 million accrued and due for payment by the State of Alaska under the ACES program over the next 12 months. This does not include amounts that will be rebated for Cosmo # 1 well expenditures.
The ACES rebate program was implemented in 2007 by the State of Alaska to incentivise exploration and development of Alaska’s energy endowment. The Company believes it is the most generous rebate program globally, the main features of the ACES rebates are as follows:
Up to 65% of seismic, drilling costs rebated;
Up to 45% of facilities-related CAPEX (platforms, flow-lines and pipelines) rebated;
A cash rebate;
Not repayable; and
Not contingent on success.
The Company estimates that approximately US$1.2 billion has been paid out from the program over the last 3 fiscal years to various companies.
BUCCANEER ENERGY LIMITED
Mr Dean Gallegos