Buccaneer Energy Plc (AIM:BUCE, FRA:LMU1) confirmed to investors it has closed a £350,000 fundraise to finance an adjacent producing-well acquisition in East Texas and push ahead with an Organic Oil Recovery (OOR) programme that it says has already doubled output in a pilot area.
The AIM-quoted group issued new shares priced at 0.01p, with participation from institutional investor Premier Miton, alongside directors, management and existing shareholders. The placing shares come with one-for-one warrants exercisable at 0.0125p for two years.
Proceeds will support the purchase of a 100% working interest in the Carlisle 1 well in the Fouke area of the Pine Mills field for $425,000, adding around 25 barrels of oil per day net. Buccaneer expects the deal to lift net production to about 160 bopd and improve its strategic position within the proposed Fouke waterflood unit.
Chief executive Paul Welch described it as an important step, as the small-cap oiler seeks to focus on increasing recovery and production.
"I am pleased to announce the successful completion of this fundraise, supported by both institutional and existing shareholders... I would like to thank Premier Miton, alongside new and existing shareholders for their continued support," Welch commented.
"We have ambitious plans for this business, both organic and inorganic, and we look forward to sharing further updates with all our stakeholders in due course."
Buccaneer said it also intends to expand OOR work across Pine Mills, delivered by Hunting Plc, after a pilot treatment generated a 100% uplift in production in the treated zone.