REG - Buccaneer Energy PLC - Successful Organic Oil Recovery Pilot Project

Buccaneer EnergyAnnouncement

16/02/2026 07:00

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RNS Number : 0239T  Buccaneer Energy PLC  16 February 2026

 

Buccaneer Energy Plc

("Buccaneer" or the "Company")

16 February 2026

 

Successful Organic Oil Recovery Pilot Project

 

 

Buccaneer Energy (AIM: BUCE), the international oil & gas exploration and
production company with a portfolio of production and development assets in
Texas, USA, is pleased to announce the successful completion of an Organic
Oil Recovery ("OOR") pilot project (the "Pilot Project" or "Pilot") in its
Pine Mills field in East Texas.

 

Highlights

 •    Pilot implemented in the Northern section of Pine Mills (Battery 3 area)
      •                                        Treatment applied to one injector and two of four producing wells in
                                               mid-January 2026
 •    Production in the area increased by 100% after treatment
 •    Average production in the Pilot area increased from 15 bopd to approximately
      30 bopd during the post-treatment period and has continued at these levels
 •    Water cut decreased from 80% to 0% in one of the treated wells
 •    Cost of the program was modest and comparable to a routine field workover
      •                                        Follow-up treatment of the remaining two producing wells in this area is being
                                               planned

 

The Pilot Project was implemented in the northern section of the Pine Mills
field within the Battery 3 area. This is a section of the field where the
Company recently returned the water injector to service during its 2-Phase
workover program. The injector had been previously shut in for over two years.

 

OOR is a process that involves injecting a nutrient mixture into the reservoir
to stimulate the growth of naturally occurring microorganisms. These microbes
grow rapidly and alter their surface properties from hydrophilic (attracted to
water) to hydrophobic (repelled by water). These property changes reduce the
interfacial tension between the rock face and the reservoir oil, improving the
mobility of residual oil within mature waterflood systems. One treated
producer experienced a significant reduction in water cut immediately
following treatment.

 

The Pilot Project involved treating the water injection well and two of the
four producing wells in the Battery 3 area.  Prior to treatment, production
from the area averaged 15 bopd (Jan 1-15, 2026); after treatment, it averaged
30 bopd (Jan 29 - Feb 15, 2026), a 100% increase.

 

The Company will continue to evaluate production performance at the treated
wells and more generally as it prepares for the next phase of field
implementation.

 

Based on these encouraging early results, Buccaneer plans to treat the two
remaining wells in the Battery 3 area as part of a March follow-up program. In
parallel, Buccaneer is working with the service provider to expand the OOR
program across the Pine Mills field during the second quarter of 2026.

 

CEO Interview

 

The Company has also published a video interview with Paul Welch, Chief
Executive Officer, on the Proactive Investors platform in which he discusses
today's announcement in further detail, outlining the significance of the
results and how they can provide Buccaneer with a competitive advantage.

 

The interview is available to watch here: https://youtu.be/8LMA0tLyezQ
(https://youtu.be/8LMA0tLyezQ)

 

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

 

"We are very encouraged by the success of the Pilot Project where average
production from the area treated increased 100% to 30 bopd. The initial
results significantly exceeded our expectations. The process is well-suited to
mature waterfloods, like Pine Mills, where the "easier oil" has been produced
and a large amount of residual oil remains in place. Efficiently dislodging
this residual oil has a significant impact on production rates.  One of the
treated producers in the Pilot went from an 80% water cut to a 0% water cut
after treatment, a remarkable result.

 

Most importantly, the cost of this treatment is modest and comparable to a
routine workover, meaning it can be applied without a material capital
investment.

 

As highlighted in our recent reserve update, Pine Mills carries an NPV10 of
approximately $9.6 million at $60 oil pricing. Our current market
capitalisation is approximately £1.3 million.  Our focus is on closing that
gap through incremental production growth, improved recovery and disciplined
execution. We see this program as a practical step toward converting
underlying reserve value into cash flow and look forward to updating
shareholders as we expand the initiative across the field."

 

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 / Charles Denley-Myerson

 

 

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