Buccaneer Energy Plc (AIM:BUCE, FRA:LMU1) said it is raising £460,000 to launch a European onshore gas strategy, targeting an initial portfolio of up to three projects alongside its existing Texas production business.
The AIM-listed group has partnered with Orion Resources, led by petroleum geologist Roberto Bencini, after reviewing more than 300 opportunities across Europe.
Projects in Italy, the Czech Republic and Turkey have been shortlisted, with the initial portfolio targeting around 250 BCF of P50 gas potential, an estimated US$500 million NPV10 and potential annual cash flow of roughly US$28 million, subject to further technical and commercial work.
The funding comprises a £125,000 placing, £194,000 subscription and £141,000 conversion of fees into shares. Buccaneer will issue 4.6 billion new shares at 0.01p, representing about 19.9% of its enlarged share capital. Placing and subscription investors will also receive warrants exercisable at 0.0125p.
Meanwhile, Texas production is running at around 135 barrels of oil per day, with June expected to have generated approximately US$200,000 of positive net cash flow. Buccaneer said the Fouke waterflood remains on track to start during the fourth quarter, while the board continues to target production of roughly 5,000 boepd within three to five years.
