BCC - Buccaneer Energy

[breakevencrazy]

I'm not allowed to post the link because I'm not prolific.This is lifted from Petroleum news. Anyone getting in sub 4c is sitting pretty I think.

Buccaneer gets further approval from AIDEA

Buccaneer moved two steps closer to bringing a jack-up into Cook Inlet today.

The Alaska Industrial Development and Export Authority agreed to consider owning a piece of the rig and determined that the project was eligible for tax-exempt financing.

Buccaneer Alaska, a local subsidiary of the Australian independent, is looking to buy a jack-up rig by interlocking a series of public and private funding mechanisms.

To buy the rig, Buccaneer wants to use up to $60 million of Recovery Zone Facility Bonds and wants AIDEA to invest between $20 million and $30 million. Then, to offset those costs, Buccaneer would take advantage of a new tax credit that pays 100 percent of the drilling expenses, up to $25 million, for the first offshore well drilled with a jack-up.

The AIDEA board approved two resolutions that advance that cause today.

The first allows AIDEA to conduct a feasibility study to decide whether owning a portion of the rig is a good business decision. The second allows Buccaneer to get reimbursed for certain expenses if it is ultimately allowed to use the Recovery Zone Facility Bonds.

AIDEA could make a final decision as early as Dec. 3.

 

[Miner]

I'm not allowed to post the link because I'm not prolific.This is lifted from Petroleum news. Anyone getting in sub 4c is sitting pretty I think.

Buccaneer gets further approval from AIDEA

Buccaneer moved two steps closer to bringing a jack-up into Cook Inlet today.

The Alaska Industrial Development and Export Authority agreed to consider owning a piece of the rig and determined that the project was eligible for tax-exempt financing.

Buccaneer Alaska, a local subsidiary of the Australian independent, is looking to buy a jack-up rig by interlocking a series of public and private funding mechanisms.

To buy the rig, Buccaneer wants to use up to $60 million of Recovery Zone Facility Bonds and wants AIDEA to invest between $20 million and $30 million. Then, to offset those costs, Buccaneer would take advantage of a new tax credit that pays 100 percent of the drilling expenses, up to $25 million, for the first offshore well drilled with a jack-up.

The AIDEA board approved two resolutions that advance that cause today.

The first allows AIDEA to conduct a feasibility study to decide whether owning a portion of the rig is a good business decision. The second allows Buccaneer to get reimbursed for certain expenses if it is ultimately allowed to use the Recovery Zone Facility Bonds.

AIDEA could make a final decision as early as Dec. 3.

Breakevencrazy

I think what you expected to happen on Dec 3 is happening tonight and hence the trading halt call by BCC. See attached

But I am confused because on 17 Nov BCC reported that AIDEA has approved a funding on 16 Nov 2010 - see attached.

We will know itomorrow some time f there was any additional funding or cancellation of funding

 

[prawn_86]

Interesting presentation released today showing a good aco**** of where the co is at.

Slides 30 and 31 give a decent peer comparison:

EV /2P BOE(AUD$/BOE)
Tap Oil TAP 21.97
Horizon Oil HZN 31.22
Nido Petroleum NDO 43.70
Cooper Energy COE 14.93
Drillsearch DLS 28.40
Pan Pacific PPP 4.18
Average 122.5 (EV) 23.90

BCC - EV /2P BOE (AUD$/BOE) = 0.52c, so 8x undervalued on that basis compared to PPP.

Obviously market is factoring in failure in their projects, and personally i cant blame it as management have been slow to deliver imo

 

[againsthegrain]

Sold all my holdings today to pursue another much more aggressive opportunity on which I could not pass.

Don't see bcc moving too fast in the short term future, hope to still get back on board without missing out on much just before springtree get off (feb) unless some major new developments take place.

Good luck to all still holding and hope to still get on this old ship before it sails off to alaska

 

[indeck]

Good yet somewhat cryptic news out of bcc today with a "substantially higher" reserve expected. Numbers to follow mid jan. I was fortunate enough to jump in before the market really reacted so i'm sitting pretty on a ~10% gain today.

 

[againsthegrain]

What do you guys think about the current situation, bonds, waiting for funding approval? I am considering a re-entry but not quiet sure how to risk assess the funding approval.

From my research I see it as a bit of a 50/50 situation, bystrica you have always been very good with honest and critical analysis of this stock which upset many however proved to be very correct.


If the bonds do not go through this will most likely crash back to 2c.

 

[againsthegrain]

Well im just going to reply to myself then, bcc is looking good again and I have managed a good entry, no annoucements yet but everything is pointing to a favourable decision. In for short-mid term again.

 

[mr. jeff]

BCC mentioned in the FIn Review today,

"Buccaneer to roll out 70M barrels"

mentions that BCC may be preparing to announce jew 12.7m barrel 2P reserve base in Alaska, goes on to say that this reserve could be worth about 550m in future revenue or 300M npv.

Any holders, this sounds like when it comes out officially, could be good news.

 

[mr. jeff]

Well to follow up on that; great news for holders:

ASX RELEASE – 25 JANUARY 2011
SOUTHERN CROSS UNIT, ALASKA – NETHERLAND SEWELL REPORT
Buccaneer Energy Limited (“Buccaneer” or “the Company”) is pleased to provide the
following Reserve and Resource calculations for the Southern Cross Unit located in the
Cook Inlet, Alaska and completed by Netherland, Sewell & Associates, Inc (“NSA”).
The combined Proved + Probable (2P) Reserves and P50 Resources is 27.4 million barrels
of oil equivalent, this represents a 82% increase on the expected Reserve and Resource as
presented to the Company’s AGM on 30 November 2010.
The following Reserves reflect the Company’s Working Interest in Southern Cross Unit.
Buccaneer holds a 100.0% Working Interest in the project, the Net Revenue Interest is
80.0%:

Reserves: Proved (1P) 6.3
Proved + Probable (2P) 12.7
Proved + Probable + Possible (3P) 24.1
MMBOE*

If anyone has been investigating already, it might be worth a look at the total effects on BCC mc? Will assess shortly.

 

[prawn_86]

They seem to be building a big reserve base, but struggling to get it into proper productions and cashflow/profit. Im still holding a few for long term as i like the management team. We'll see

 

[Miner]

Well to follow up on that; great news for holders:




If anyone has been investigating already, it might be worth a look at the total effects on BCC mc? Will assess shortly.

Gone up more than 30% so far this morning.
I was impatient and unloaded most of the holding only last week.

 

[mr. jeff]

if this reserve is worth 300m to them now and mc is currently approx, 40m, then this find could potentially add some impetus to their sp. perhaps approx. 20m to their mc, but this is complete speculation.

After looking back through the thread it appears that BCC hasn't exactly set the world on fire with previous works to date. Maybe they are better off selling these leases?

 

[prawn_86]

Maybe they are better off selling these leases?

They only just bought them. Will be interesting to see how they proceed, but as it is all new infrastructure required its interesting that they think they can raise enough debt to pay for it all

 

[zzaaxxss3401]

Gone up more than 30% so far this morning.
I was impatient and unloaded most of the holding only last week.

That's frustrating! I now get into the habit of checking out the price trend. It was heading towards a breakout... and it looks like there were a few "early" trades before today's announcement.

 

[laurie]

Guys they are trying to get a JUR via AIEDA funding to be the first in Cook Inlet to drill the first hole they are trying to beat Danny Davis to the inlet once a rig is there then the real show starts yes I agree its been slow but someone told me once the share market is a place where wealth is transferred from the impatient to the patent got to say thou it has tested my patience a few times

laurie

 

[laurie]

AIDEA decision must be getting very close sp .11c looks like its anticipation of a result could be near if not then sp next week back to .098c or there abouts if decision comes it could go as high as .15c to form a base for the next leg up to .20c

laurie

 

[againsthegrain]

It will take the jur around 40 days to get to alaska after its finished being winter proofed and upgraded so still alot of time to play around with.

Yes a bit of speculating around the results from bonds application however this has became a more mid term play now, lots of day traders and hurt investors from over a year ago. I seriously doubt 20c is on the books given all green lights on short term.

15c might be a temp target if everything goes according to plan..... bcc going according to plan?

The money will be in the jur arriving, spud dates set then actual flow rates from first drill. Im out of bcc once again for some quick gains and will be looking over the next few months on how these guys are progressing. From past experience it will probably be a while still.

 

[prawn_86]

Looks like they are going ahead with the AIDEA funding for the jack-up rig. Looks like a pretty complex arangement to me with Buc 100% owning Buc Alaska, which 100% owns Opco, who will be the rig operator. Buc Alaska also 50% owns Kenai which will be buying the Jack up rig, and a JV partner owns the other 50% of Kenai

No actual $ figures forecast, so i'm watching very closely.

 

[laurie]

Market not impressed with announcement you wonder sometimes why companies uses trading halts to announce news that was widely known and already factored in the share price.Trading halts are usually either good news or bad news this was neither

laurie

 

[zzaaxxss3401]

Another trading halt pending an announcement in respect to finalisation of details of a Share Purchase Plan. Be interesting to see what the announcement details are tomorrow morning.

I'll take a guess at 10c (Average for past 5 days was 11c) so it would be a 10% discount at least.