Replies to post #13564 on Value Microcaps Junior Energy

[Bobwins]

latest presentation:

http://www.buccaneerenergy.com/pdf/04sep2013_updated_company_presentation.pdf

Catalyst:
1. KL4 already drilled but having a dispute with a nearby land owner about encroaching on their portion of the field and draining their reserves. Typically this happens and participants agree to share the proceeds. Should be resolved reasonably quickly. Buccaneer had projected 5mmcfpd production but may be smaller due to sharing agreement when it finally happens. Will take the steam out of production because it will be lower net to BCC than planned but company seems confident well is a producer. Hinting that they won't test it but go straight to production once the hassle is resolved.

2. Drilling West Eagle onshore well in October. This is an exploratory well that could have both oil and gas. Could be a nice addition to Kenai Loop onshore production. Production could happen much sooner than the offshore projects.

3. Returning to Cosmos for more winter drilling. The Cosmos project is far enough south that the ice doesn't prevent drill rigs from operating. Buccaneer's 75% JV partner has recently raised money that should fund at least one more offshore well this winter.

although the company is very enthusiastic about what they found in their initial drilling, they have not formally tested the original well. It will take at least two wells before they make any kind of production decision at Cosmos and their partner needs to agree to raise the money necessary to build the offshore infrastructure to produce and transport the oil and gas to onshore facilities. So don't expect production from offshore before 2015 at the earliest.

I remain very enthusiastic about Buccaneer because of the unique position of the Alaska market for natural gas. They are getting paid double the current prices for ngas and they could receive more if the LNG plant is reactivated by Conoco.

Buccaneer has tens of millions of barrels of reserves for oil and gas that are fairly low risk due to previous drilling nearby. There is also upside and the company is hinting that Cosmos is much better than they anticipated. They bought adjoining leases from Apache recently, which they wouldn't have done if Cosmos had disappointed.

Short term, I expect good news from SCU and West Eagle could drive the share price to .10. Longer term, I expect .15 to .25, depending on future drilling results and actual production from onshore and offshore.