Appointment of Canaccord as Financial Advisor
Sydney, Mar 28, 2013 AEST (ABN Newswire) - Buccaneer Energy Limited (
ASX:BCC) advises that with a view to maximise shareholder value, it has appointed Canaccord Genuity (Australia) Limited ("Canaccord") as its financial advisor to advise the Company on seeking strategic alternatives in respect to the Company's assets.
While Buccaneer has undertaken a significant amount of work and made considerable progress on its Alaskan assets since entering the Cook Inlet in 2010, the Company's current market capitalisation fails to recognise the underlying inherent value contained in these assets.
The three projects within the Company's portfolio that have Proven Reserves certified by independent engineers are as follows:
Buccaneer Energy Limited ("Buccaneer" or "the Company") advises that with a view to maximise shareholder value, it has appointed Canaccord Genuity (Australia) Limited ("Canaccord") as its financial advisor to advise the Company on seeking strategic alternatives in respect to the Company's assets.
While Buccaneer has undertaken a significant amount of work and made considerable progress on its Alaskan assets since entering the Cook Inlet in 2010, the Company's current market capitalisation fails to recognise the underlying inherent value contained in these assets.
The three projects within the Company's portfolio that have Proven Reserves certified by independent engineers are as follows:
-------------------------------------------------------Project Proven Reserves(1) Proven Reserves MMBOE Present Value (PV10) US$Million-------------------------------------------------------Kenai Loop Project(2) 3.7 $70.0Southern Cross 6.3 $129.0Cosmopolitan 7.8 $143.0-------------------------------------------------------Total 17.8 $342.0-------------------------------------------------------1. All reserves validated by third party engineers as at Feb.1, 20132. Proved Undeveloped Reserves not included, pending third partyclarification
Additionally the Company has third party certified 2P (Proven and probable) Reserves of 32.9 million barrels of oil equivalent ("MMBOE") and P50 Resource of 60.6 MMBOE.
The appointment of Canaccord is for the next 6 months during this time Canaccord will assist the Company in reviewing its strategic options.
Background
Buccaneer made its first lease acquisition in the Cook Inlet, Alaska in April 2010 and since that time has gone through a process of adding to the initial lease position as well as de-risking the projects to a drill ready stage.
An overview of the highlights of what has been achieved since that time is as follows:
- Unitised the Southern Cross Unit and North West Cook Inlet Unit;
- Completed permitting for two wells at each of the Southern Cross and North West Cook Inlet Units;
- Leased 9,308 acres at the Kenai Loop Project from three separate lease owners;
- Drilled a new field discovery well at Kenai Loop
- Permitted a total of 4 wells and drilled three wells at Kenai Loop, two of which were successful;
- Permitted and built a pipeline at the Kenai Loop Project;
- Achieved production of 10.0 MMCFD at the Kenai Loop project with corresponding significant cash flow;
- Permitted and acquired a 25 square miles 3D seismic date over Kenai Loop;
- Acquired the Cosmopolitan project;
- Reprocessed 3D seismic data over the Southern Cross Unit and Cosmopolitan projects;
- Reprocessed 230 miles of 2D seismic at West Eagle project and high-graded a lead to a drillable prospect;
- Successfully unitised the West Eagle Unit;
- Acquired the West Nicolai project at lease sale;
- Acquired and refitted the Endeavour jack-up rig with exclusive access for 5 years;
- Secured exclusive access to the Glacier onshore rig until May 2015, with an option to purchase;
- Third party certification of Proven Reserves of 19.4 MMBOE, Proven and Probable Reserves of 32.9 MMBOE and P50 Resource of 60.4 MMBOE; and
- Secured $100 million in new debt facilities to support the ongoing development of the Company's Kenai Loop project.
About Canaccord Genuity
Canaccord Genuity is a global full-service investment bank, with offices in 21 cities and 13 countries, with the capability to list companies on 10 stock exchanges worldwide.
In CY2012 Canaccord led raisings totalling more than US$2.9 billion and has completed over 370 M&A advisory transactions valued at over ~US$95 billion since 2008 led by a team of 270+ investment bankers globally.
Canaccord focuses exclusively on the small & mid cap sectors of the market via four global service lines, including Energy, it has 120+ research professionals covering over 1000 stocks and speaks daily to over 3,500 institutions.
Canaccord have a dedicated global energy team with deep advisory and industry experience within the Oil & Gas sector. Canaccord has significant capabilities in North America, Asia, Europe and Australia.
Contact
Buccaneer Energy Limited
T: +61-2-9233-2520
F: +61-2-9233-2530
WWW: www.buccenergy.com
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