(WO) – Buccaneer Vitality has acquired a 100% working curiosity within the Carlisle-1 properly within the Pine Mills subject, East Texas, strengthening its place within the Fouke space and growing near-term manufacturing and money circulation.
Picture: Buccaneer Vitality
The properly is at the moment producing about 25 bopd, lifting the corporate’s whole output to roughly 155 bopd. Carlisle-1 advantages from low working prices of about $6.23/bbl and generates robust margins, with an estimated netback of roughly $65/bbl at present oil costs.
In accordance with a third-party reserves report, the properly accommodates roughly 51,000 bbl of proved developed producing (PDP) reserves, with a PV-10 worth of about $910,000. Further upside is predicted from a deliberate waterflood and Buccaneer’s Natural Oil Restoration (OOR) program, which might improve recoverable volumes to greater than 250,000 bbl.
The acquisition additionally will increase Buccaneer’s working curiosity within the proposed Fouke waterflood unit to larger than 50%, enhancing its operational management within the space.
“The completion of the acquisition of the Carlisle-1 properly instantly will increase our manufacturing and money circulation whereas strengthening our strategic place throughout the Fouke space of the Pine Mills subject,” mentioned CEO Paul Welch.
The corporate expects the asset to ship a payout interval of roughly 9 months below present market circumstances.
