AIM-listed Buccaneer Energy, the international oil & gas exploration and production company with a portfolio of production and development assets in Texas, USA, has completed a reserve valuation update in connection with its credit facility with WAFD Bank, formerly Washington Federal Savings and Loan.
The updated valuation confirms an increase in proved reserve volumes and forecast cash flow, supporting the continued strength of the Company's asset base, notwithstanding the lender's more conservative oil price outlook.
Highlights
- Total net proved reserves increased by 18%, based on the latest independent reserve review
- Forecast cash flow increased by 27% under the WAFD borrowing base valuation
- NPV9 increased to US$11.8 million under WAFD pricing
- Borrowing Base confirmed at US$4.45 million under the WAFD senior facility
- WAFD near-term oil price assumption increased to US$70/bbl for 2026
- Carlisle-1 acquisition increased Buccaneer's equity position in the Fouke enhanced recovery area
- Fouke enhanced recovery project anticipated to come onstream in Q4 2026
- Texas asset base continues to demonstrate low operating costs and resilience
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 18% while forecast cash flow increased by 27% using WAFD's near-term oil price assumption of $70 per barrel, to reflect its outlook on global oil markets.
Our onshore Texas asset base has increased with the acquisition of the Carlisle-1 well in March of this year. This strategic acquisition has increased our equity position in the Fouke enhanced recovery area, increasing our proved undeveloped asset base by 68%. This project is anticipated to be onstream in the 4th quarter of 2026 and is expected to lead to a further increase in the lending base.
Our onshore position continues to benefit from low operating costs, enabling the business to perform well in the current pricing environment while retaining meaningful upside as production, cash flow and reserves continue to grow.'
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Source: Buccaneer Energy
