Acquisition of Jack-Up Rig - Binding Contract Executed by Buccaneer Energy Ltd. subsidiary Kenai Offshore Ventures
Buccaneer Energy Limited ("Buccaneer" or "the Company") is pleased to advise that its subsidiary Kenai Offshore Ventures, LLC ("KOV") has executed a binding Purchase Agreement with Transocean Offshore Resources Limited, a subsidiary of Switzerland-based Transocean Limited, to acquire the GSF Adriatic XI offshore jack-up rig ("Rig"). The total purchase price is US$68.5 million.
Settlement of the purchase is scheduled to take place between 30 September 2011 and 25 October 2011. Upon settlement, the Rig will immediately be transported to an Asian based shipyard to undergo modifications to enable operations in the Cook Inlet, Alaska. KOV is in the process of finalising modification and mobilisation budgets.
It is anticipated that the Rig will arrive in the Cook Inlet for the 2012 drilling season in April / May 2012.
Buccaneer anticipates contracting day to day operation of the Rig out to an established rig operator, additionally senior members of Buccaneer's existing management team have direct jack-up rig operating experience.