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BCC - Buccaneer Energy

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watchingall said:
http://www.alaskajournal.com/stories/061110/oil_acn.shtml

This seems to outline the situatiion. Apache seems to have said they are coming to the Cook Inlet. Advantage Buccaneer for getting there first.
Click to expand...

Thanks
Now the stupid question from me:

How Escopeta Corp and BCC are related notwithstanding BCC is going to have a large stake in Alaska. If company like Apache does not come to the party then BCC will be only a by stander. Nonetheless the 120 day drilling at Escopeta will have lot to prove for BCC. To save cash (as BCC has already provided huge shares to its own directors for one only drill in 3 years ) BCC probably will wait to see the outcome of drilling with Escopeta Corp and do nothing.


What do you think before I draw the correlation between the two cases?
 
Re: BCC and Escopeta

Miner,

I would not relate these two, there only connection is that they are both from Houston and both working in Alaska. If you watch the Jim Watt video and then go back and watch Curtis Burton in three parts I think you will get a better idea of the strategy. Escopeta will be in real trouble if Apache or another big independent doesn't come to the Inlet. They have been burning time and capital holding leases and trying to get a rig in place. If they don't get another extension they will lose the work they have done so far.

BCC on the other hand is a new player in the Inlet. They have bought off shore leases and on shore leases. Just as they did in the Gulf of Mexico and Texas when they started. BCC will start on-shore in Alaska and get some things moving before they jump into the water.

The longer Apache waits the better for BCC, they will get a stronger foot hold at lower costs. Once the herd heads North the leases will get very expensive and the demands on the work force and limited equipment will rise.

BCC has production in Gulf of Mexico, soon they will have oil in LC, they have other prospects not related to Alaska. I believe all Escopeta has are leases in the Cook Inlet.
 
The oil is starting to flow in LC, the last few announcements have been positive. Since the last 17c peak the company has advanced so much forward. The current price of mid 4 cents is starting to look very very delicious
 
The company has advanced nowhere. 52.5% of a well producing 400 BOPD is peanuts. Wait until wee see the decline rates. This whole Le County program is so mundane and non-company making. I bet they wish they had sold it a while back when it was on the market.
They don't even have enough money to get a jack-up rig to the Cook Inlet. Going nowhere while the general market is roaring.
 
I've never seen a supposed team of experts change their mind so many times on what to do. They were adamant that Alex 1 required a horizontal as history has proven vertical fractures do not produce for very long at all. So what do they do? They produce from the vertical which means they will incur more costs to get the horizontal rig back on site when the inevitable decline kicks in.
This supposed team of experts are a very ordinary team indeed. I hope for all shareholders' sakes the ex-Stellar boys know what they are doing in Alaska. By the way, I might just attend the AGM and give these poor managers a good verbal flogging. I've got a list of 11 "issues" already. Curtis better be on his A Grade game and I'll also be asking if he made good use of his club membership in the USA that we shareholders paid for. Oh, and how is the car allowance going? Is it covering all the expenses?
Then I'll give Dean a serve on Springtree. How he came up with that toxic agreement is anyone's guess. What a complete joke.
 
400bpd is good for the well cost, if it even declines to 200 I wont be complaining about the cash flow. I believe in the last ann the operator said alex1 had one of the best flows compared to wells in the area.

St will be exiting in Feb and without the funding no progress or move to Alaska would be possible. Cant win without setbacks, very negative mljet
 
I have been bagged about my negativity on Lee County. You are all starting to see what I have been saying is coming to fruition. This project is a DUD. At best, they can install pumps and piddle out 200-260 BOPD. At BEST! Then they only own 52.5%. What a joke and bullish people can justify anything when in denial. You wonder why the market is ignoring BCC. Lee County doesn't offer any blue sky whatsoever and they are burning about $8M per annum in running costs. Just do the math.

Perhaps BCC should go into the business of selling water? There's no shortage of that under Lee County! So much for their supposed expertise. They need to get a decent operator who understands the Austin Chalk or sell it for what they can get. These guys have been stuffing around for 12 months.

1. Sell Lee County
2. Recapitalise the company to raise $20M
3. Get cranking on Alaska.

That's it for 2010 in Lee County I reckon. They have enough problems to sort out for the next two months at least.
So, the much hyped 10 quick Lee County wells has turned out to be 3 wells which includes 2 duds (Vick 1 and Vick 2) and one probable water producing dud (Alex 1). No wonder the K Group sold out at a loss earlier this year and moved on.
 
Oh dear! Estimated untapped oil reserves in Alaska slashed by 90%.

http://news.blogs.cnn.com/2010/10/2...-reserves-estimate-lowered-90-percent/?hpt=T2

This news on top of the continuing farce called Lee County. They either get an operator who knows what they are doing or sell the acreage for what they can get IMO.
Have a read of the latest farce on Vick 2 and Alex 1 flowing at a piddling 200 BOPD (ON PUMP) and BCC owns 52.5%. No wonder the market is caning them.
 
at 50% they will be making 100 bopd by current estimates, at least the well will pay itself off and some cash flow. I agree its definately nothing too hot but I am quiet happy with the current price for a long term entry which I have made :)

Things have not gone to plan so far but at least something is happening and not a total fail, moderate risk, some good potential and possibly big rewards for those keen to wait.

I don't count on it but maybye finally these guys will get some more luck when/if they do go with those horizontals.

Either way there will be more future speculation upon closer spud in Alaska which will make great exits for mid term.

p.s looks like bcc is very close to get a slice of those rebates from the Alaskan govt for being the first 3 to drill
 
BCC gave a hint as to why they were not proceeding to horizontals straight away. Capital preservation. In other words, things are a bit tight IMO.

The biggest risk to the current share price is a big cap raising for Alaska. No need to buy at 4c IMO. The chance of a much lower entry is still great IMO.

Personally, at 3c I would take a nibble and at 2c I would go in hard and look to free carry after a spike on Alaskan news.
 
Agreed, if it goes to 2 I will definately pick up more, at 3 ill have to sit back and watch but still happy to go in at 4 and wait, im in no hurry
 
You're obviously not worried about a thing called "opportunity cost". Money in this dog is stagnating at best whilst the market has boomed.
 
All depends on your strategy, my strategy was to pick up some at 4 and im sticking with it, if it goes to 2 well ill be happy to watch and know you can never always pick the absolute bottom. If 4 is the bottom ill be happy to be free carried along either way in the future.
 
I have to say i agree on pretty much all counts with BB. Lots of hype and very little action from these guys, unfortunately for me...
 
A nice result today, Netherland Sewell Report got some investors jumping in. 17% increase from my last post. I still see the price drifting a little lower with springtree antics but from the looks of it not sure about that 2c entry.

Nice profit for me but I am giving Dean a chance and will definately stick around longer to see it out, about time bcc got some positive news
 

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