Buccaneer Energy Plc (AIM:BUCE) shares moved higher after the oil and gas producer announced a £500,000 fundraise and the start of drilling at its Allar #1 well in Texas, marking the latest step in its plan to expand output and monetise associated gas through a new bitcoin mining initiative.
The company raised the funds through a placing and subscription at 0.017p per share, supported by institutional investors, management and existing shareholders.
Some suppliers also opted to take shares as payment for services. The proceeds will fund Buccaneer’s participation in a planned bitcoin mining operation in the Fouke area, designed to utilise surplus gas that would otherwise be flared.
Chief executive Paul Welch said the approach could turn a waste stream into revenue while establishing a bitcoin treasury managed under a new governance and custody framework.
The company is seeking a partner to operate the mining project, but may proceed independently if none is secured.
Separately, Buccaneer confirmed it has spudded the Allar #1 well, where drilling and evaluation are expected to take about two weeks.
Welch said the well should boost production and cash flow from the Pine Mills Field, where the firm holds a 32.5% working interest.