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Three Buccaneer directors resign Announcement follows shake up back in early July; Buccaneer now scouting for replacements for seven-member board Eric Lidji For Petroleum News
The Buccaneer Energy Ltd. board of directors is back in entirely Australian hands after three directors resigned “effective immediately,” the independent announced Aug. 14.
The three directors — Nicholas Davies, Clinton Adams and Shaun Scott — had only been on the board since shareholders voted them in on July 2, but their presence had created uncertainty about how the company would proceed, particularly in the Cook Inlet.
Now, Buccaneer said it intends to “engage the services of an executive search firm to indentify suitable independent non-executive directors with the skills and experience to assist the company in its development plans” and also to move ahead on discussions with a nominee to be proposed by a major shareholder, Meridian Capital International Fund.
The directors represented the interests of Pacific Hill International Ltd. and Harbour Sun Enterprises Ltd., two Singapore-based shareholders who had accused the Buccaneer board of having “lost is way” by taking on too many Alaska projects. The two shareholders wanted to replace the entire board, but while the vote installed Davies, Adams and Scott it only removed two members of the existing four-member board.
Buccaneer immediately installed another director, giving the board a three-three split.
To add to the complications, Buccaneer had inked a deal with Meridian Capital International Fund in late June that gave the venture capital firm a seat on the board.
When they made their move to replace the board, Pacific Hill International and Harbour Sun Enterprises held an 8.6 interest in Buccaneer, enough to call for a shareholder vote under Australian law. But after Meridian Capital International Fund acquired a 19.99 percent stake in the company, Pacific Hill International and Harbour Sun Enterprises now holds only 5.5 percent, which Buccaneer believes didn’t justify its position on the board.
Second Cosmo test Locally, Buccaneer has also announced progress on two projects.
The company said a second flow test at its Cosmopolitan No. 1 well produced 7.3 million cubic feet per day from a 66-foot section of sand at a measure depth of some 4,300 feet.
Buccaneer previously announced a 7.2 MMcf per day flow test from a 73-foot section of sand at 5,500 feet. Both tests targeted the Tyonek sands at the offshore Cook Inlet field.
The company is now suspending the well as a future producer.
A little ways to the north, at its onshore Kenai Loop field, Buccaneer said it is approximately a third of the way to total depth at the 10,897-foot Kenai Loop No. 1-4.
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