Buccaneer Energy Ltd. is selling its interest in the Cosmopolitan field and the Endeavour jack-up drilling rig to strengthen its balance sheet, the company announced yesterday.
The Australian independent is selling its 25 percent stake in the offshore Cosmopolitan field to BlueCrest Energy Inc. for $41.25 million. The privately held Fort Worth independent currently holds the majority interest in the oil and gas field off Anchor Point.
Buccaneer is also selling its 50 percent interest in Kenai Offshore Ventures LLC to Teras Investments Pte. Ltd. for $23.95 million. A joint venture between Buccaneer and Ezion Holdings Ltd., Kenai Offshore Ventures owns the Endeavour rig through a deal partially funded by the Alaska Industrial Development and Export Authority. Under the terms of the deal, AIDEA must approve the sale before it can be finalized, Buccaneer said.
By keeping its wholly owned subsidiary Kenai Drilling LLC, Buccaneer said it would still be the operator of the rig once those sales are finalized. The Cosmopolitan deal requires BlueCrest to use the Endeavour jack-up rig at the field for at least 50 working days in each of the three upcoming winters, at a minimum rate of $175,000 per day.
The sales are designed help Buccaneer pay down previous debt, but the company is also pursuing a series of loans, credit facilities and rights issues totaling some $116.3 million, according to the company. If those financing agreements and both sales are ultimately executed, Buccaneer said it “will have working capital and will be essentially debt free.”
See story in Jan. 5 issue, available online at 11 a.m. Friday, Jan. 3, at www.PetroleumNews.com