Works on Endeavour Jack-Up Rig Almost Done, Buccaneer Energy Says (USA)

Buccaneer Energy Limited has an update on the “Endeavour – Spirit of Independence” jack-up rig and Buccaneer’s offshore Alaskan projects in the Cook Inlet.

The Endeavour is owned by Kenai Offshore Ventures, LLC (“Kenai Offshore”), which is a joint venture between Buccaneer, Singapore based Ezion Holdings Limited and the Alaska Industrial Development and Export Authority (“AIDEA”). Buccaneer is the designated Manager of Kenai Offshore.

As previously advised, since the Endeavour’s arrival in Homer in late August 2012, Kenai Offshore has been working with local contractors through the Endeavour’s project manager, Archer Drilling (“Archer”), to complete various rig upgrades and repairs ahead of the final vessel inspection and certification. This included rectification of work that had been completed in Keppel Fels shipyard in Singapore.

Buccanner has confirmed that all work has now been completed and preliminary findings from the final inspections by the American Bureau of Shipping (“ABS”) conducted in the last week indicate one minor door replacement and some minor paperwork requirements are outstanding. A formal report from ABS is expected this week to confirm these two small outstanding items, after which the Company will then be able to proceed with inspections by the US Coast Guard (“USCG”) to receive approvals to operate in US waters.

Drilling operations will commence as soon as all necessary drilling permits have been received and the Alaskan Oil and Gas Conservation Commission (“AOGCC”) has given approval to proceed.

Commenting on the Endeavour, Dean Gallegos, Buccaneer Energy Director said: “The Endeavour will not only play a key role in revitalizing Cook Inlet exploration and development, but with its upgrades and refitting, the Endeavour is now suitable to support exploration and development operations in Arctic waters, such as the Chukchi Sea off the North Slope of Alaska. Although the work has taken much longer than originally anticipated, the Endeavour is now fit for purpose and able to perform in some of the world’s harshest environments.”

Gallegos continued, “We are looking forward to having Spartan operate the Endeavour and take us to execution mode on our Cosmopolitan project, the first of our offshore assets to be drilled. Their proven operational expertise and experience in the Cook Inlet will be invaluable, and further de-risks our operations.”

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Press Release, December 17, 2012