REG - Buccaneer Energy PLC - Completion of Fundraise

Buccaneer EnergyAnnouncement

19/08/2025 08:45

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RNS Number : 8882V  Buccaneer Energy PLC  19 August 2025

 

 

Buccaneer Energy Plc

("Buccaneer Energy", "BUC" or "the Company")

 

19 August 2025

 

Completion of £600,000 Fundraise

 

Further value to be generated from Fouke Area by drilling two additional
development locations.

 

Buccaneer Energy (AIM: BUCE), the international oil & gas exploration and
production company with development and production assets in Texas, USA, is
pleased to announce a successful fundraise supported by institutional
investors, Directors and Management, existing shareholders and new investors.

 

The Company has raised £600,000 (before expenses), c.US$800,000, through a
subscription and placing of 4,000,000,000 new ordinary shares (the "Fundraise
Shares") at a price of 0.015p per share (the "Placing Price") (the
"Fundraise").

 

Use of Proceeds

 

The proceeds of the fundraising will be used to fund the Company's share of
the drilling of two development locations in the Fouke area.  The Company's
working interest is 32.5%, with well plans for September and December 2025.
The Fouke area is an isolated fault block in the southwestern section of the
Pine Mills field that was discovered in 2021 at original reservoir
conditions.  Wells in this area produced water free at the field allowable
rate of 124 barrels of oil per day.  It is anticipated that the next two
development locations will produce at similar rates.

 

Gas Monetisation Strategy

 

The associated gas produced in the Fouke area has been increasing over time
and with volumes provided by the two additional development wells the Company
has been evaluating potential local solutions for reducing gas flaring and
monetising the produced gas.

 

As part of its evaluation of the monetisation of gas production, Buccaneer has
been considering options for utilising the gas for powering bitcoin mining
which has become increasingly common in the onshore Texas basins since 2022.
To aid with this evaluation and future implementation the Company is pleased
to announce the appointment of Appold, an award-winning independent blockchain
and digital asset advisory firm, as the Company's strategic advisor regarding
a potential future Bitcoin strategy (https://www.appold.com/).

 

Appold will act as advisor on the implementation of governance, custody,
trading, and risk management frameworks as the Company seeks to evaluate
partnering with a Bitcoin Mining operator in order to generate a potential
return from its associated gas production.

 

The implementation of a successful strategy to monetise this gas is subject to
a number of further steps including the drilling result from the new
development wells. This includes entering into an agreement with a bitcoin
miner on suitable terms and further assessment of potential sites for a future
operation.

 

While some initial discussions with Bitcoin Mining operators have taken place,
there can be no certainty that the Company will successfully partner with a
Bitcoin Mining operator to generate a return from its gas production, the
timeframe of such a partnership or the eventual return from such a
partnership.

 

Corporate update

 

Buccaneer is pleased to announce the appointment of OAK Securities, a trading
name of Merlin Partners LLP, as Joint Corporate Broker alongside the Company's
existing broker SP Angel.

 

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

 

"I am pleased to announce that we have completed a £600,000 fundraise for the
progression of our major operational program at the Fouke Area in East Texas.
We have identified two additional development locations that are within the
same reservoir section as the successful Fouke 1 and 2 wells.  New
interpretation of the 3D seismic, combined with the existing well performance,
has demonstrated that the reservoir section continues to the North of the
existing wells and has yet to be drained by the existing wells. This section
of the reservoir has been producing at high rates over the last several years
with increasing amounts of associated gas.  This gas has restricted
production in Fouke 2 and delayed the drilling of the remaining development
wells.  The gas volumes, however, were determined to be too small to develop
a dedicated offtake pipeline but are sufficient to dedicate to a power project
that can use the gas offtake to mine for Bitcoin, which is a preferred option
to flaring the gas. This allows us to accelerate the development of these
locations.

 

In closing, I would like to thank our new and existing shareholders for their
support with this Fundraise. We have ambitious plans for this business, both
organic and inorganic, and we look forward to sharing further updates with all
our stakeholders in due course."

 

Application for Admission and Total Voting Rights

 

An application will be made to the London Stock Exchange for the 4,000,000,000
Fundraise Shares and a further 400,000,000 ordinary shares issued to Oak
Securities in respect of fees to be admitted to trading on AIM ("Admission").
It is expected that Admission will become effective on or around 21 August
2025.

 

260,000,000 warrants are to be issued to Oak Securities. The warrants exercise
at the Placing Price and are exercisable at any time until two years following
Closing of the Placing.

 

In accordance with the FCA's Disclosure Guidance and Transparency Rules, the
Company confirms that on issue of the Fundraise and fee Shares and following
Admission, the Company's enlarged issued ordinary share capital will comprise
11,349,346,617 Ordinary Shares.

 

The Company does not hold any Ordinary Shares in Treasury. Therefore,
following Admission, the above figure may be used by shareholders in the
Company as the denominator for the calculations to determine if they are
required to notify their interest in, or a change to their interest in the
Company, under the FCA's Disclosure Guidance and Transparency Rules.

 

Related Party Transaction

The following Directors of the Company have subscribed for Fundraising Shares
(the "Director's Subscription"):

 

 Director      Subscription amount  Number of Fundraise Shares  Resultant shareholding  Resultant interest in enlarged share capital
 Paul Welch    £15,000              100,000,000                 216,231,884             1.91%
 Steve Staley  £10,000              66,666,667                  91,500,001              0.81%

 

The Director's Subscriptions are related party transactions for the purposes
of AIM Rule 13 of the AIM Rules for Companies. The Director, independent of
the Fundraise, being James Newman, considers, having consulted with SP Angel
Corporate Finance LLP, the Company's nominated adviser, that the terms of the
Director's Subscription are fair and reasonable in so far as the Company's
shareholders are concerned.

 

Premier Miton, a substantial shareholder in the Company, has subscribed for
732,800,000 Fundraise Shares in the Fundraise. The participation of Premier
Miton in the Fundraise is also a related party transaction for the purpose of
AIM Rule 13 of the AIM Rules for Companies. The Director, independent of the
Fundraise, being James Newman, considers, having consulted with SP Angel
Corporate Finance LLP, the Company's nominated adviser, that the terms of
Premier Miton's participation are fair and reasonable in so far as the
Company's shareholders are concerned.

 

 

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

 Oak Securities (Joint Broker)                Tel:     +44 (0) 20 3973 3678

 Robert Bell / Nick Price

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

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

 Mark Antelme / Jimmy Lea

 

 

 1    Details of the person discharging managerial responsibilities / person closely
      associated
 a)   Name                                                         1)    Paul Welch

                                                                   2)    Steve Staley
 2    Reason for the notification
 a)   Position/status                                              1)    Chief Executive Officer

                                                                   2)    Non-Executive Director
 b)   Initial notification /Amendment                              Initial notification

 3    Details of the issuer, emission allowance market participant, auction

    platform, auctioneer or auction monitor

 a)   Name                                                          Buccaneer Energy plc
 b)   LEI                                                          213800JO9A4LO19YJ129

 4    Details of the transaction(s): section to be repeated for (i) each type of

    instrument; (ii) each type of transaction; (iii) each date; and (iv) each
      place where transactions have been conducted
 a)   Description of the financial instrument, type of instrument   Ordinary shares of £0.0001 each

      Identification code

 b)   Nature of the transaction                                    Fundraise of ordinary shares
 c)   Price(s) and volume(s)                                       PDMR          Price      No. of shares
                                                                   Paul Welch    £0.00015   100,000,000
                                                                   Steve Staley  £0.00015   66,666,667
 d)   Aggregated information                                        N/A, single transaction

      - Aggregated volume

      - Price
 e)   Date of the transaction                                      19 August 2025
 f)   Place of the transaction                                     Outside a trading venue

d)

Aggregated information

- Aggregated volume

- Price

 N/A, single transaction

e)

Date of the transaction

19 August 2025

f)

Place of the transaction

Outside a trading venue

 

 

 

 

 

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