BCC - Buccaneer Energy

[jancha]

This is the only spec i still hold that has not moved up significantly since the downturn; hopefully a few factors coming up will see it move.

Annual report out today so thought i would give a summary of what they have said about their main projects:

Pompano - Well #1's workover has commenced, essentially to stop the sand blocking it. If all goes to plan it should be up and flowing at 5000mmcfpd again within a couple weeks.

Lee County - BCC has increased lease acerage from <900 to approx 2500 acres. Still planning to 'twin' the original Vick #1 holve which flowed at >10mmcfpd back in the day.
Still no date set as yet, aside from saying they are talking with the JV parites. I would really like to see some faster action on this personally.

Other projects - No firm dates set for Tuna, Tang, Swordfish, Redfish, Ruby, Jaguar or Cove Deep. Essentially all that is happening is 3D modelling.


All in all a bit of a disappointing report. I can see why the stock had languished, no action to cause interest, not even wildcat ddrilling to attract a few punters. Lets just hope that the Pompano workover gets the flow rates up again and they get stuck into Lee County asap.

Dont know how you can say no action to cause interest? Whats the reason behind the sudden interest in volume then?

 

[AussiePaul72]

I have been a long term holder aswell. I agree Prawn that it has been a long wait, however, investors need to put their financial position in perspective. They haven't been in a very good financial position to get projects moving even if they wanted and it got to the point where they were going to sell Pompano etc to pay off debt and get ahead again.

After the cap raising they have paid the majority of their Macquarie Bank debt and re-negotiated what appears to be better terms. They also could then fund the work required to get Pompano workover done and also Lee County drilling in the near future.

Success of the Pompano workover and funds to also drill the highly prospective Lee County project could set BCC up with a very good positive cashflow going forward through 2010 onwards. This would then provide good funds for further exploration on their other projects. I think this is what the market is liking lately and why BCC sp is starting to look up again and attracting a lot more attention by investors.

This is the only spec i still hold that has not moved up significantly since the downturn; hopefully a few factors coming up will see it move.

Annual report out today so thought i would give a summary of what they have said about their main projects:

Pompano - Well #1's workover has commenced, essentially to stop the sand blocking it. If all goes to plan it should be up and flowing at 5000mmcfpd again within a couple weeks.

Lee County - BCC has increased lease acerage from <900 to approx 2500 acres. Still planning to 'twin' the original Vick #1 holve which flowed at >10mmcfpd back in the day.
Still no date set as yet, aside from saying they are talking with the JV parites. I would really like to see some faster action on this personally.

Other projects - No firm dates set for Tuna, Tang, Swordfish, Redfish, Ruby, Jaguar or Cove Deep. Essentially all that is happening is 3D modelling.


All in all a bit of a disappointing report. I can see why the stock had languished, no action to cause interest, not even wildcat ddrilling to attract a few punters. Lets just hope that the Pompano workover gets the flow rates up again and they get stuck into Lee County asap.

 

[jancha]

I have been a long term holder aswell. I agree Prawn that it has been a long wait, however, investors need to put their financial position in perspective. They haven't been in a very good financial position to get projects moving even if they wanted and it got to the point where they were going to sell Pompano etc to pay off debt and get ahead again.

After the cap raising they have paid the majority of their Macquarie Bank debt and re-negotiated what appears to be better terms. They also could then fund the work required to get Pompano workover done and also Lee County drilling in the near future.

Success of the Pompano workover and funds to also drill the highly prospective Lee County project could set BCC up with a very good positive cashflow going forward through 2010 onwards. This would then provide good funds for further exploration on their other projects. I think this is what the market is liking lately and why BCC sp is starting to look up again and attracting a lot more attention by investors.

Hi AussiePaul
What do you make of the sudden jump in the share price today. Other than whats been said do you think some good news to come?

 

[AussiePaul72]

Hi Jancha,

The statement below was listed in BCC's news release on 21 Sept entitled 'Pompano Work-over Commenced':

"The work‐over is expected to take approximately 14 days to complete, the Company will release routine updates every Tuesday or at any such time that material matters require a separate release."

Today was 14 days since the above news statement was released and the company said they will release updates at least every Tuesday. So the market is anticipating good news being released tomorrow.

Today was a huge volume day with almost 145 million traded. Will be interesting to see tomorrow's announcement.

Hi AussiePaul
What do you make of the sudden jump in the share price today. Other than whats been said do you think some good news to come?

 

[jancha]

Hi Jancha,

The statement below was listed in BCC's news release on 21 Sept entitled 'Pompano Work-over Commenced':

"The work‐over is expected to take approximately 14 days to complete, the Company will release routine updates every Tuesday or at any such time that material matters require a separate release."

Today was 14 days since the above news statement was released and the company said they will release updates at least every Tuesday. So the market is anticipating good news being released tomorrow.

Today was a huge volume day with almost 145 million traded. Will be interesting to see tomorrow's announcement.

Thanks AussiePaul
Sold out at .062 May have sold a bit early but if it drops back down I may buy back in. See what happens tomorrow.

 

[prawn_86]

A lot of the increased volumes of late would be due to the recent placement. I think about 80m shares were issued, so it means a heap of people could stag a profit. With that said however, the turnover yesterday was still huge.

 

[jancha]

Thanks AussiePaul
Sold out at .062 May have sold a bit early but if it drops back down I may buy back in. See what happens tomorrow.

Well did the right thing in selling but at what point would you come back in? Gone down as quick as it went up. Not quite as much volume tho. Would have thought however that with the updated news they put out today it would have had a positive effect not a negative one. Down to 052c

 

[YELNATS]

Well did the right thing in selling but at what point would you come back in? Gone down as quick as it went up. Not quite as much volume tho. Would have thought however that with the updated news they put out today it would have had a positive effect not a negative one. Down to 052c

Volume is down today but only a little. Volume traded about 59 million in less than 3 hours trading as they only started at about 12.45pm. Yesterday was 144 million. Obviously plenty of buyers still think it's a good buy just over .05.

 

[AussiePaul72]

Its not a big surprise to me that the sp has retreated somewhat after the GOOD announcement today. I sold some on Monday afternoon and the remainder today soon after they began trading again. There are a lot of investors taking profits (like me!) after the cap raising at 3.5c. I'm still holding my free oppies as i think they have a lot of potential.
I still think that BCC has a lot of upside with drilling at Lee County due next month and a constant cashflow coming in with Pompano back online. Keep in mind that before Pompano came back online, one of the BCC announcements openly stated that the value of BCC equated to about 16c. At end of trade today BCC market cap is still conservative in my opinion at $13M.

 

[prawn_86]

From todays ann:

The Company is planning to spud the first well at Lee County in early to mid November 2009

Plan to drill 100’ up‐dip to the earlier Humble Vick # 1 well that flowed gas at 10.8 mmcfd over 24 hours through a pipe test following significant oil in 3 DSTs from 6,063 ‐ 6,076 feet (Buda Formation) that reported oil/mud, no water and 750 feet of clean oil in the drill string

Another month or so wait and BCC should once again be cashflow positive. I havn't done the sums yet, but with the successful workover and increased flow rates on Pompano they must be nearly cashflow neutral once again.

 

[prawn_86]

Ok so here is some sums based on the latest ann that Pompano 1 is now flowing at 3.5million cubic feet per day (mmcfpd).

Spot gas price is 3.95 per mmbtu

1000mmcf = 1 mmbtu, therefore BCC are producing 3500 per day.

3500 * 3.95 = 13825 per day = $5mill per year net. *not taking into account the other flowing well*

This flow rate will probably increase to about 7mmcfpd once the line is fully cleaned.

Good to see they have the cashflow up and running again and that it will pay for all their upcoming drilling costs, at a minimum, and maybe even bank a profit just from Pompano, depending on gas prices.

 

[jancha]

Ok so here is some sums based on the latest ann that Pompano 1 is now flowing at 3.5million cubic feet per day (mmcfpd).

Spot gas price is 3.95 per mmbtu

1000mmcf = 1 mmbtu, therefore BCC are producing 3500 per day.

3500 * 3.95 = 13825 per day = $5mill per year net. *not taking into account the other flowing well*

This flow rate will probably increase to about 7mmcfpd once the line is fully cleaned.

Good to see they have the cashflow up and running again and that it will pay for all their upcoming drilling costs, at a minimum, and maybe even bank a profit just from Pompano, depending on gas prices.

20% jump in price. Lot of activity with some large volume buying today. Updated news this morning. Reason for the late move?

 

[Albi]

Hi All
Is there any thing that is promoting the price so late after coming the news? After 2 there was all of a sudden jump in the price and it is close at 22% high. Is it wise to enter in this stock at this time. Please suggest, as I am new.

 

[jancha]

Hi All
Is there any thing that is promoting the price so late after coming the news? After 2 there was all of a sudden jump in the price and it is close at 22% high. Is it wise to enter in this stock at this time. Please suggest, as I am new.

Hi Albi
I'm pretty much new to this myself but personally I'd watch how the market performs. At the moment & over the last week or so there has been some large buyers. I personally wouldn't enter into it at this point but rather watch and see how it moves. It went as high as .07sh last week & dropped down to .05. Even tho I like what i see with the larger volume buyers I would prefer to buy at a lower cost to which i have. ( Sold earlier @ .062 & bought back in @ .051) Everyone would have their own thoughts on this so really it comes down to your homework & thoughts on the company involved.

 

[Wilson!]

Hi guys, was a great day for BCC holders and more to come
I posted this elsewhere, hope it sheds some light.

Also to the below, drilling starts next month in a oil/gas field which has seen 11 successful drills from 12

revenues started coming in monthly again from existing sales, of about $250k per month I think

Market cap is very low even under 10c, apparently.
Cheers,
Wilson

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BCC should just power on, especially now it seems that mac bank only have 3-4m oppies left to convert, which they can't even do until november. (that's what was likely behind all the selling the last week.

Did everyone know about that, that is quite important in the reason behind it being held back until now.

Now it's gone, what do you think is going to (and IS already) happening...

 

[Tukker]

I'm not too knowledgeable about options and how they reflect on a company's value when they are issued. I see they intend to pass a motion to offer millions of options over the next year.

If they have a market cap of 16 million today, what happens when they get 200mil in capital to finance their work? Is this considered an increase in company value? Should the share price be positively or negatively affected (in a perfect world)?

I got a buy signal for BCC last week and have been hesitant to jump in thinking a market correction was imminent.

I was curious a bit about the company and saw the general meeting coming up addressing management compensation and the options proposed to be sold.

Is this a regular move for a company of this type in this stage of its development?

 

[prawn_86]

After being as low as 3c a few months ago, BCC is now up above 7c. Having said that, it still has not moved as much as many other more speculative oilers/explorers in this rally.

Lee County is due to spud within the next 2 - 3 weeks and all is on track, so if they can twin the historic well at 10mmcfgpd that should cause a significant re-rating alone, not considering their other projects.

To me this remains very undervalued when compared to many other explorers without cashflow. BCC has cashflow from production to pay for future drilling.

 

[prawn_86]

Ann just out of another director purchase. Thats 2 in the last 2 weeks. Seems a bit suss to me considering Lee County is supposed to be a 'company maker' in its own right. So do the directors know something we dont, or are they just also hoping.

If the twin well at Lee County works as planned, at the same historical rates, it will more than double their current production, with just one well

 

[Wilson!]

prawn, another one out today, director purchasing that is
They probably have a small window left still, to top up before entering the "can't buy" zone

 

[Trader Paul]

Hi folks,

BCC ... expecting some positive news this week. as a positive time cycle
moves in, about Wednesday or Thursday .....

Will also be watching BCC for further moves, around 16112009 and 26-27112009,
as 2 more positive time cycles come into play.

have a great week

paul



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