REG - Buccaneer Energy PLC - Completion of Carlisle-1 Acquisition

Buccaneer EnergyAnnouncement

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RNS Number : 7504W  Buccaneer Energy PLC  16 March 2026

 

 

16 March 2026

 

Buccaneer Energy Plc

("Buccaneer" or the "Company")

 

Completion of Carlisle-1 Acquisition

 

Buccaneer Energy (AIM: BUCE), the international oil & gas exploration and
production company with development and production assets in Texas, USA, is
pleased to announce that it has completed the acquisition of a 100% working
interest in the Carlisle-1 well located in the Fouke area of the Pine Mills
field (the "Acquisition"). The transaction closed on 13 March 2026, with an
effective date of 1 January 2026.

 

The Acquisition was partially funded from the proceeds of the £350,000
fundraise previously announced on 2 March 2026. Read the full announcement
here
(https://www.londonstockexchange.com/news-article/BUCE/completion-of-ps350-000-fundraise/17483782)
.

 

Carlisle-1 Well Highlights

 

 ·   100% working interest acquired in the Carlisle-1 well.

 ·   Immediate production of approximately 25 barrels of oil per day (bopd).

 ·   Company production increases to approximately 155 bopd.

 ·   Carlisle-1 features low operating costs of US$6.23/barrel (bbl).

 ·   Strong netback of cUS$65/bbl at current field prices.

 ·   Estimated net cash flow of approximately US$50,000 per month at current oil
     prices.

 ·   PV10 value of US$910,540 based on independent reserve report using bank price
     deck (see below).

 ·   Approximately 51,000 barrels of proved reserves (third-party estimate) before
     waterflood, 256,000 with the waterflood.

 ·   Increases Buccaneer's interest in the proposed Fouke waterflood unit from
     approximately 33% to greater than 50%.

 

 

Carlisle-1 Asset

 

The Carlisle-1 well (the "Well") is located within the Pine Mills Field in
East Texas, adjacent to Buccaneer's existing Fouke area wells and producing
from the same reservoir horizons as the Fouke 1 and Fouke 2 wells.

 

The Well is currently producing approximately 25 bopd, generating strong cash
margins due to low operating costs. Based on current field prices of
approximately US$92/bbl, the Well delivers a netback of approximately
US$65/bbl, equivalent to approximately US$50,000 in monthly net cash flow.

 

Operating costs for the Well were approximately US$6.23/bbl in 2025,
highlighting the strong margin profile of the asset.

 

A third-party reserve report estimates proved developed producing (PDP)
reserves of approximately 51,000 barrels of oil, with a PV10 valuation of
approximately US$910,540 using a conservative bank (WAFD) price deck (See
below). This estimate does not include any reserves associated with the Fouke
area waterflood, which are anticipated to be approximately 225,000 barrels
under waterflood development or from Buccaneer's Organic Oil Recovery ("OOR")
programme.

 

The report was prepared by APN Energy to the SPE PRMS standard and dated 2
March 2026.

 

  Category                   Gross Oil and condensate (Mbbl)  Net oil and condensate (Mbbl)
 Proved Developed Producing  50.58                            38.38
 Total Proved                50.58                            38.38

 

  Category                   Future Net Income (USD)  Net Present Value

                                                      10% Discount Rate (USD)
 Proved Developed Producing  $1,224,120               $910,540
 Total Proved                $1,224,120               $910,540

 

The Acquisition further consolidates Buccaneer's position within the proposed
Fouke waterflood unit, where the Company anticipates its working interest will
increase from approximately 32.5% to greater than 50% following the addition
of the Carlisle-1 well.

 

The Well is expected to benefit from both waterflood development and
Buccaneer's OOR programme, which has already demonstrated significant
production uplift within the Pine Mills field.

 

 Image 1: Pumping Unit on the Carlisle-1 Well

 

 

 

Paul Welch, Buccaneer Energy's Chief Executive Officer, said:

 

"The completion of the acquisition of the Carlisle-1 well immediately
increases our production and cash flow while strengthening our strategic
position within the Fouke area of the Pine Mills field.

Carlisle-1 is a high-margin producing asset with low operating costs and
attractive reserves and increases our interest in the proposed Fouke
waterflood unit to greater than 50%, enhancing our operational position as we
continue to develop the area.

The Acquisition increases our working interest production to approximately 155
bopd, and with strong oil prices and low onshore operating costs, Pine Mills
continues to generate attractive cash margins for the Company. Based on the
latest reserve update using the conservative WAFD bank price forecast (shown
below), it increases our current NPV10 PDP reserve value to approximately
US$10.5 million.

Carlisle-1 also offers attractive capital efficiency, with a projected payout
period of approximately 9 months at current pricing.

The Board believes Buccaneer's current market capitalisation of approximately
£1.55 million does not yet reflect the value of its existing producing
reserve base, as set out in the latest reserve update using the conservative
WAFD bank price forecast, and before any contribution from recent oil price
increases, the proposed Fouke waterflood unit, OOR optimisation or broader
field development upside. Our focus is on disciplined execution to narrow that
value gap through production growth, cash generation, and enhanced recovery
initiatives."

 

     WAFD Price Deck (US$/bbl)

 

 Year  Price
 2026  51.65
 2027  51.90
 2028  53.20
 2029  54.40
 2030  56.14
 2031  57.93
 2032  59.77
 2033  61.67
 2034  63.63
 2035  65.65
 2036  66.45

 

Qualified Person's Statement

In accordance with the "AIM Rules - Note for Mining and Oil and Gas
Companies", the information

contained within the announcement has been reviewed and signed off by Paul
Welch, Chief Executive Officer and Director, who has over 40 years of
international oil and gas industry experience and is a Member of the SPE.

 

Glossary

 bopd                  Barrels of oil per day
 Gross Production      Production at a total project level (100% basis) before royalties
 Net Production        Net production attributable to a participant's Working Interest before
                       royalties
 Royalty               A type of entitlement interest in a resource that is free and clear of the
                       costs and expenses of development and production to the royalty interest
                       owner. A royalty is commonly retained by a resources owner (lessor/host) when
                       granting rights to a producer (lessee/contractor) to develop and produce that
                       resource. Depending on the specific terms defining the royalty, the payment
                       obligation may be expressed in monetary terms as a portion of the proceeds of
                       production or as a right to take a portion of production in-kind. The royalty
                       terms may also provide the option to switch between forms of payment at
                       discretion of the royalty owner.
 SPE                   Society of Petroleum Engineers
 SPE PRMS              A standard for the definition, classification, and estimation of hydrocarbon
                       resources developed by the Oil and Gas Reserves Committee of the Society of
                       Petroleum Engineers and named the Petroleum Resource Management System
 Proved Reserves       An incremental category of estimated recoverable quantities associated with a
                       defined degree of uncertainty. Proved Reserves are those quantities of
                       petroleum that, by analysis of geoscience and engineering data, can be
                       estimated with reasonable certainty to be commercially recoverable, from a
                       given date forward, from known reservoirs and under defined economic
                       conditions, operating methods, and government regulations. If deterministic
                       methods are used, the term "reasonable certainty" is intended to express a
                       high degree of confidence that the quantities will be recovered. If
                       probabilistic methods are used, there should be at least a 90% probability
                       that the quantities actually recovered will equal or exceed the estimate.
 Undeveloped Reserves  Those quantities expected to be recovered through future investments: (1) from
                       new wells on undrilled acreage in known accumulations, (2) from deepening
                       existing wells to a different (but known) reservoir, (3) from infill wells
                       that will increase recovery, or (4) where a relatively large expenditure
                       (e.g., when compared to the cost of drilling and completing a new well) is
                       required to recomplete an existing well.
 Working Interest      A participant's equity interest in a project before reduction for royalties or
                       production share owed to others under the applicable fiscal terms.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic
Law by virtue of the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

 

 

For further information, contact:

 

 Buccaneer Energy plc                         Email:   Investor_relations@buccaneerenergy.co.uk

 Paul Welch, CEO

 SP Angel Corporate Finance LLP               Tel:     +44 (0) 20 3470 0470

 (NOMAD/Joint Broker)

 Stuart Gledhill / Richard Hail / Adam Cowl

 Celicourt Communications                     Tel:     +44 (0) 20 7770 6424

Email:
BucEng@celicourt.uk
 (PR/IR)

 Mark Antelme / Charles Denley-Myerson

 

 

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