Buccaneer raises $14.5M for Alaska work

Buccaneer Energy Ltd. is set to raise around $14.5 million for its exploration and development program in Alaska’s Cook Inlet basin through an institutional placement.

The Australian independent recently placed approximately 104 million ordinary shares — 97 million shares left over from a previous placement and 97 million new shares. The placement required investors to subscribe to an equal number of each share type.

The funds have been committed and the settlement will take place July 15, the company said.

Buccaneer is raising the capital to fund its onshore Kenai Loop program, its stake in an offshore venture in the Cook Inlet and other working capital and transaction costs.

Earlier this year, Buccaneer drilled its first Alaska well — Kenai Loop No. 1 — reporting an initial flow rate of 10 million cubic feet per day and 645 feet of gross pay.

Buccaneer is also working with the Alaska Industrial Development and Export Authority and the marine company Ezion Holdings Ltd. to buy the Transocean Adriatic XI jack-up rig for a four-well exploration program at two offshore units operated by Buccaneer.

Buccaneer plans to use the $14.5 million to build the infrastructure needed to bring Kenai Loop No. 1 into production, to drill the Kenai Loop No. 2 well in the third quarter and to pay its mandatory $2.5 million stake in the roughly $85 million jack-up rig venture.

Buccaneer plans to drill the Kenai Loop No. 2 well around 1.25 miles east of the Kenai Loop No. 1 location and recently said it has received all its surface permits for the well.

—Eric Lidji