Buccaneer gets LUP for jack-up rig

With a permit from the Department of Natural Resources, Buccaneer Energy can now move its jack-up drilling rig to the Cosmopolitan prospect, the company said Dec. 27.

The Division of Mining, Land and Water confirmed that it planned to issue the permit allowing the company to move the Endeavour rig to the offshore Cook Inlet prospect, off the coast of Anchor Point, and jack the legs of the rig down onto the sea floor.

The rig has been docked in Homer for more than four months as Buccaneer and its affiliates have completed maintenance work and permitted an exploration program.

Alongside the permitting hurdle, Buccaneer is hoping to clear a financial hurdle by raising some $20 million in offerings and loans, the company said. Also on Dec. 27, Buccaneer said it had executed two agreements, one that raised $9.2 million by issuing 198 million shares and another for an unsecured loan for around $9.9 million.

The funds will go toward Buccaneer’s onshore and offshore exploration in the Cook Inlet, and to “finalize the modifications and upgrades to the Endeavour jack-up rig.”

Through its subsidiary Kenai Offshore Ventures LLC, Buccaneer and Archer Drilling LLC recently ended a partnership to refurbish and operate the rig. Each side claims it cut ties with the other and the case is now in a Texas state court. Buccaneer recently hired Spartan Drilling LLC to take over as operator once the rig begins its drilling program.

Before drilling can begin, though, it must undergo final inspections and Buccaneer must get its program approved by the state. Buccaneer plans to drill up to two wells this year.

—Eric Lidji