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
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.