Buccaneer Energy Plc (AIM:BUCE) CEO Paul Welch talked with Proactive's Stephen Gunnion about the company’s latest operational updates in East Texas, including the spudding of the Allar #1 well and its plans to monetise associated gas via Bitcoin mining.
Welch explained that Buccaneer expects the Allar #1 well to perform similarly to its previous Fouke 1 and Fouke 2 wells. While the gross production could reach 140 barrels per day, the field allowable limits it to 120 barrels daily, translating to a net 40 barrels per day for Buccaneer. At a WTI price of $60 per barrel, this would yield approximately $55,000 in monthly revenue for the company.
Welch noted that the company had raised £500,000 to advance a strategic Bitcoin mining project in the Pine Mills field. The field's unique gas profile means gas volumes are insufficient to justify traditional takeaway infrastructure. Instead, Buccaneer plans to generate electricity onsite and use it to power a Bitcoin mining operation, potentially producing an additional $75,000 in monthly free cash flow if the company owns the full value chain.
"This is essentially turning what is currently a kind of waste product into a revenue stream," Welch said, adding that it could also relieve back pressure on existing wells, enabling higher production rates.
He highlighted that the company is open to partnering with firms experienced in Bitcoin mining to manage the infrastructure, equipment, and operations.
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