Value Microcaps Junior Energy

[stock_peeker]

Link to the BCC-Conoco deal. It looks like Buccaneer really needs to raise the cash to drill a couple of deep wells now.

http://www.proactiveinvestors.com.au/companies/news/42901/buccaneer-energy-to-earn-100-working-interest-in-conocophillips-deep-oil-rights-in-alaska-42901.html

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Buccaneer Energy to earn 100% working interest in ConocoPhillips' deep oil rights in Alaska
Monday, May 06, 2013 by Proactive Investors

Buccaneer Energy (ASX:BCC) has inked a deal with U.S super major ConocoPhillips (NYSE:COP) whereby it will have the right to earn a 100% working interest in Conoco's deep oil rights in 23,368 acres in North Cook Inlet in Alaska.

As part of the transaction, Buccaneer has also entered into a licence agreement on the existing 3D seismic owned by ConocoPhillips. The 3D licence covers both the area subject to the deep oil rights agreement as well as the existing North West Cook Inlet Unit.

Buccaneer has agreed to the division of the farm-in area into two acreage blocks--Block A and Block B-- with a well commitment in each.

A well must be spudded in either Block A or Block B by December 31, 2014 and a second well in the other block by December 31, 2015.

The company plans to spud the first well in the Southern Block A to test the Hemlock Formation using the Endeavour jack up rig.

This well will be an offset to the ARCO North Forelands-1 well that was flow tested at 4,343 BOEPD from three formations (including the Hemlock) and was drilled when oil averaged US$19.25 per barrel.

Buccaneer will not pay any upfront cash for the transaction and Conoco will retain all the shallow gas rights as well an overriding royalty interest.

The oil is contained in the Lower Tyonek, Hemlock, Sunfish and West Foreland Formations and since 1962, these formations have been penetrated by 13 wells, of which 10 wells have been successfully flow tested at rates of up to 4.343 barrels of oil equivalent per day.

Buccaneer has commissioned Netherland, Sewell and Associates to provide a reserve report on the oil reserves acquired by the company and is likely to book significant 2P reserves.

Netherland, Sewell had assigned a P50 resource of 15.5 million barrels of oil and 187.2 Bcf of gas to Buccaneer's wholly owned North West Cook Inlet Unit that has the same geological structure as the leases being farmed into by the company.

The company is on the market to raise up to $36.46 million via a rights issue on a 3 for 5 basis at an issue price of $0.04 per share.

It had a cash balance of A$5.27 million at the end of March 2013 quarter.