Buccaneer Energy Plc (AIM:BUCE, FRA:LMU1) announced it has completed a reserve valuation update linked to its credit facility with WAFD Bank, delivering an increase in proved reserve volumes and keeping its borrowing base unchanged at $4.25 million.
The company, in a statement, said total net proved reserves increased 6% and the net present value at a 10% discount rate was $9.6 million, reflecting broadly stable forecast cash flows year on year. WAFD applied a more conservative near-term oil price assumption, which Buccaneer said was reduced by $7.45 per barrel, or 14%.
“We are encouraged by the outcome of the latest borrowing base review, which demonstrates the underlying strength and resilience of our asset base," said chief executive Paul Welch.
He added: “Total proved net reserves increased by 6% while forecast cash flows remain broadly stable year on year, despite WAFD's near-term oil price assumption being reduced by $7.45 per barrel, or 14%, to reflect its outlook on global oil markets.”
Buccaneer said the facility’s interest rate is 6.75% and is indexed to the WSJ prime rate, with the borrowing base to be reassessed at least twice yearly.