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(Sharecast News) - Buccaneer Energy said on Monday that it planned to move into the next phase of development at the Fouke area of the Pine Mills field in Texas, where it holds a 32.5% working interest, following a recent technical review of the Allar 1 well and newly acquired offset acreage.
The AIM-traded company said it intended to implement a secondary recovery waterflood scheme, using the Turner 1 and Daniel 1 wells as dedicated injection wells.
Buccaneer said the two wells were located at the downdip limits of the productive reservoir interval and are considered optimal positions for water injection.
The additional offset lease provided the injection locations required to initiate the scheme, which was designed to increase reservoir pressure and stabilise and improve recovery.
Waterflooding had been used successfully in the wider Pine Mills region for more than 50 years.
Primary recovery in the Fouke area totalled 333,851 barrels of oil as of September 2025.
Buccaneer estimated that the introduction of waterflooding could increase recoverable volumes by two to three times, with additional recoverable oil expected to range between 667,000 and 1.002 million barrels.
In the Pine Mills field, primary recovery typically averaged around 15% of original oil in place, while waterflood schemes have historically lifted recovery to between 30% and 50%.
Before the waterflood could start, the Texas Railroad Commission required the formation of a waterflood unit comprising all leaseholders and royalty owners in the proposed area.
Buccaneer said it expected the regulatory process and construction of the required facilities to take up to six months.
During that period, the Turner 1 well was expected to be returned to production ahead of waterflood initiation, providing incremental output while preparatory work continued.
Drilling of the Fouke 4 well and a sidetrack of the Allar 1 were planned to follow the successful commissioning of the waterflood system.
"The decision to initiate a waterflood in the Fouke area marks a key step forward in maximising long-term value from our Pine Mills assets," said chief executive Paul Welch.
"Waterflooding has a proven track record in these reservoirs, and we believe the Turner 1 and Daniel 1 wells provide ideal injection points to support a highly effective recovery scheme.
"We are confident that this programme will materially increase recoverable reserves and enhance the field's production profile.
"We look forward to updating investors as we progress the regulatory and technical workstreams required for implementation."
At 1240 GMT, shares in Buccaneer Energy were down 3.7% at 0.01p.
Reporting by Josh White for Sharecast.com.