Buccaneer Energy expands position in Pine Mills field

(Sharecast News) - Buccaneer Energy announced the expansion of its position in the Pine Mills field in Texas on Thursday, acquiring a 32.5% working interest in leasehold acreage west of its Allar 1 well, in a move the company said would enable new drilling options and additional production opportunities.

The AIM-traded firm said the newly-acquired acreage opened the possibility of a westward sidetrack of Allar 1 to avoid a bounding fault, which Buccaneer said could optimise the well's performance.

It said the acquisition also included 32.5% interests in two shut-in wells, Turner 1 and Daniel 1.

Turner 1 was planned for a near-term return to production, while Daniel 1 was being retained as a potential injector well to support future waterflood development in the area.

Buccaneer said discussions were under way with the Texas Railroad Commission regarding the potential creation of an enhanced recovery unit in the Fouke area, which it believed could improve long-term field economics.

Separately, the company confirmed that its next well, Fouke 4, was scheduled to spud in late December.

Chief executive Paul Welch said the acreage deal strengthens the company's development plans.

"The addition of this acreage is an important step for Buccaneer as we look to further our development of the Fouke area by unlocking the opportunity to pursue an optimal sidetrack for the Allar 1 well," he said.

He added that the Turner 1 well offered "near-term production potential, while Daniel 1 offers longer-term development optionality," and noted that with the new acreage and Fouke 4 approaching spud, "we are well positioned to continue building production and value across Pine Mills."

Buccaneer said it would now begin preparatory work on the proposed sidetrack, including reviewing well design, cost estimates and timing with its partner.

At 1151 GMT, shares in Buccaneer Energy were down 2.06% at 0.01p.

Reporting by Josh White for Sharecast.com.