REG - Buccaneer Energy PLC - WAFD Bank – Borrowing Base Reserve Update

Buccaneer EnergyAnnouncement

28/01/2026 07:00

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RNS Number : 6288Q  Buccaneer Energy PLC  28 January 2026

 

Buccaneer Energy Plc

("Buccaneer" or the "Company")

28 January 2026

 

WAFD Bank - Borrowing Base Reserve Update

Reserve Volumes Increase - NPV10 - $9.6m

 

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 that it has completed a reserve valuation
update in connection with its credit facility with WAFD Bank ("WAFD"),
formerly Washington Federal Savings and Loan.

 

The updated valuation confirms an increase in proved reserve volumes and
supports the continued strength of the Company's asset base, notwithstanding a
more conservative oil price outlook applied by the lender.

 

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

 

"We are encouraged by the outcome of the latest borrowing base review, which
demonstrates the underlying strength and resilience of our asset base. Total
proved net reserves increased by 6% while forecast cash flows remain broadly
stable year on year, despite WAFD's near-term oil price assumption being
reduced by $7.45 per barrel, or 14%, to reflect its outlook on global oil
markets.

 

Our onshore Texas assets continue to benefit from low operating costs,
enabling the business to perform well in the current pricing environment. "

 

Highlights

 •    Total net proved reserves increased by 6%, based on the latest independent
      reserve review
 •    NPV10 of US$9.6 million, reflecting stable underlying cash flows
 •    Borrowing Base confirmed at US$4.25 million under the WAFD senior facility
 •    Conservative lender price deck applied; near-term oil price assumptions
      reduced by 14%
 •    Texas asset base continues to demonstrate low operating costs and resilience

 

 WAFD Bank Valuation (WAFD Pricing)                      Buccaneer Valuation - $60 Flat
 •                   Future Net Income: $21,478,370      Future Net Income: $21,321,860
 •                   NPV9: $9,279,920                    NPV10: $9,561,740

 

WAFD Senior Facility

 •    Borrowing Base of $4,250,000
 •    Current Interest Rate: 6.75%

 

Senior Facility & Corporate Valuation

The size of the Facility and Borrowing Base will continue to be reassessed at
least twice yearly. The Board anticipates that the Facility and Borrowing Base
will continue to expand as the Company's production, cashflows and reserves
increase. The current interest rate on the facility is 6.75% and is indexed to
the WSJ prime rate. The Facility is not restricted to any geographical region
and can expand further with the acquisition or development of other producing
assets.

 

Asset Valuation

WAFD has updated its borrowing base using a report from a third-party
engineering firm, APN Energy Consultants LLC ("APN"), effective 1 December
2025. APN prepared the report for the Company to submit to WAFD.

 

Assets included in the borrowing base are as follows:

 

 Asset          Operator  BUCE Interest (%)  Status                     Lease expiration  Total Acres (gross)
 Pine Mills     BUCE      100%               Producing and Development  HBP               2,320
 Fouke          Cypress   32.5%              Producing and Development  HBP               160
 Permian Basin  BUCE      53%                Producing and Development  HBP               160

 

Future Net Income attributable to the Company's interest, as determined by
WAFD using the price deck listed below, is calculated after deducting
estimated future operating and development costs, production and ad valorem
taxes, but before Federal income taxes.

 

  Category                       Future Net Income (USD)  Net Present Value

                                                          9% Discount Rate (USD)
 Proved Developed Producing      $13,750,450              $5,506,670
 Proved Developed Non-Producing  $6,103,300               $3,225,700
 Proved Undeveloped              $1,624,620               $547.55
 Total Proved                    $21,478,370              $9,279,920

 

 Future revenues were estimated using a WTI oil price forecast supplied by
the lender:

  Year                       Oil ($/bbl)
 2025                        $56.30
 2026                        $55.20
 2027                        $55.45
 2028                        $56.75
 2029                        $57.95
 3% Price Escalation to Cap  $70.00 CAP

 

 Dec-24

 Reserve Class and Category      Gross Oil and Condensate (Mbbl)  Net Oil and Condensate (Mbbl)

 Proved Developed Producing      1,128.35                         438.58
 Proved Developed Non-Producing  177.77                           137.38
 Proved Undeveloped              145.84                           54.36
 Total Proved                    1,451.96                         630.32
 Dec-25

 Reserve Class and Category      Gross Oil and Condensate (Mbbl)  Net Oil and Condensate (Mbbl)

 Proved Developed Producing      1,048.08                         472.13
 Proved Developed Non-Producing  344.26                           141.36
 Proved Undeveloped              145.84                           54.36
 Total Proved                    1,538.18                         667.85
 Difference

 Reserve Class and Category      Gross Oil and Condensate (Mbbl)  Net Oil and Condensate (Mbbl)  %

 Proved Developed Producing      (80.27)                          33.55                          8%
 Proved Developed Non-Producing  166.49                           3.98                           3%
 Proved Undeveloped              0.00                             0.00                           0%
 Total Proved                    86.22                            37.53                          6%

 

 

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

 

 

Technical Glossary

 

$ - US Dollar

 

bbl - barrel

 

Borrowing Base - the amount of money that a lender is willing to loan a
company, based on the value of the collateral the company pledges.

 

Future Net Income or FNI - the  projected Gross Revenues expected to
be realised (https://www.lawinsider.com/dictionary/realized)  by the
Company during the productive life of the asset less the sum of the
Operating Costs payable.

 

Gross - total quantity or amount.

 

HBP - Held by Production.

 

Net - quantity or amount associated with Buccaneer's interest.

 

Net Present Value or NPV - the difference between the present value of cash
inflows and the present value of cash outflows over a period of time.

 

WSJ - Wall Street Journal

 

WTI - West Texas Intermediate crude oil benchmark price in $/bbl.

 

 

 

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