Buccaneer Energy Plc (AIM:BUCE, FRA:LMU1), the oil and gas company with production and development assets in Texas, said its proved reserves rose 18% in an independent review tied to its bank credit facility.
The update was carried out in connection with the company's borrowing base with WAFD Bank, formerly Washington Federal Savings and Loan.
Forecast cash flow increased by 27% under the WAFD valuation, lifting the net present value of the reserves discounted at 9% to $11.8 million.
The gains came despite the lender adopting a more conservative view of oil prices, with WAFD setting a near-term assumption of $70 a barrel for 2026.
The borrowing base under the senior facility was confirmed at $4.45 million, carrying an interest rate of 6.75% indexed to the Wall Street Journal prime rate.
The valuation was based on a report by third-party engineering firm APN Energy Consultants, effective 1 December 2025, prepared using standard petroleum engineering practices.
Chief executive Paul Welch said the review demonstrated the underlying strength and resilience of the company's asset base.
He pointed to the acquisition of the Carlisle-1 well in March, which increased Buccaneer's equity position in the Fouke enhanced recovery area.
The deal lifted the company's proved undeveloped asset base by 68%.
The Fouke enhanced recovery project is expected to come onstream in the fourth quarter of 2026 and should lead to a further rise in the lending base.
Welch said the onshore Texas position continued to benefit from low operating costs, allowing the business to perform well in the current pricing environment while retaining upside as production grows.
The company said the size of the facility and borrowing base would be reassessed at least twice a year.
The board expects both to expand as production, cash flow and reserves increase.
The facility is not restricted to any geographical region and can grow further through the acquisition or development of other producing assets.
A note on the figures: the announcement headline cites NPV10 of $11.7 million, while the highlights cite NPV9 of $11.8 million, reflecting two different discount rates applied to the same valuation.
