Alaska: Buccaneer Acquires Jack-Up Rig from Transocean

November 15, 2011

Buccaneer Energy Limited announced today that its 50 percent owned subsidiary Kenai Offshore Ventures, LLC (“KOV”) has overnight in London completed the acquisition of the GSF Adriatic XI offshore jack-up rig from Transocean Offshore Resources Limited for the total purchase price of US$68.5 million

The rig is of Marathon LeTourneau 116-C design and was built in 1982 (upgraded in 2004). The name of the Rig has been changed to “Endeavour – Spirit of Independence”

Buccaneer Director Dean Gallegos said:

“With completion of this transaction, we have achieved what was initially considered by some, to be a very ambitious goal – to acquire an offshore jack-up rig.

This significant milestone for Buccaneer marks the start of the very tangible steps toward unlocking the value of our Alaskan offshore assets which Netherland, Sewell & Associates has estimated to be 73.3 MMBOE in combined 2P Reserves and P50 Resources. We are well on that path with mobilisation to the Cook Inlet on track for April/May 2012.

Furthermore the Endeavour represents a strategic asset, ensuring Buccaneer will feature predominantly in the “renaissance” of exploration activity in the offshore waters of Alaska.”

Keppel , Singapore, will bring the rig back to operational state, after it had been cold stacked. It is anticipated that the Rig will arrive in the Cook Inlet for the 2012 drilling season in April / May 2012

The first well expected to be drilled by the Endeavour will be located on Buccaneer’s 100% owned Southern Cross project where Netherland, Sewell & Associates have estimated Proven & Probable (2P) Reserves of 12.7 MMBOE and an additional P50 Resource of 14.7 MMBOE.

The Southern Cross project is in approximately 50 feet of water with no unusual technical hurdles to drill and develop. Southern Cross is within five miles of four significant oil and gas fields with a combined production of 1.1 billion BO and over 550 BCF of gas.

[mappress]
Offshore Energy Today Staff , November 15, 2011; Image: Buccaneer