Buccaneer gets $100M credit facility

Buccaneer Energy Ltd. has executed a credit facility with the Chicago-based Victory Park Capital worth as much as $100 million, the company announced on Jan. 29.

Through the two-part credit facility, Buccaneer can use its ownership of the Kenai Loop gas field and its tax credits under Alaska’s Clear and Equitable Share to borrow funds.

The first part of the deal allows Buccaneer to borrow up to $75 million through a metric based on the value of the proved developed producing reserves of the Kenai Loop field, with the possibility to add capacity based on the proved undeveloped reserves. Through the nature of the arrangement, Buccaneer could theoretically borrow larger amounts in the future, should its work at Kenai Loop increase the proved reserves of the field.

The second part of the deal allows Buccaneer to pre-fund drilling and development work eligible for ACES credits, up to $25 million. Between the two parts of the agreement, Buccaneer expects to be able to fund its drilling at Kenai Loop and West Eagle for 2013.

Buccaneer said it has already drawn on the Victory Park credit facility “to refinance its previous lender and to pay fees and expenses associated with this transaction.”

—Eric Lidji