(WO) – Buccaneer Power has acquired a 100% working curiosity within the Carlisle-1 nicely within the Pine Mills subject, East Texas, strengthening its place within the Fouke space and rising near-term manufacturing and money move.
Picture: Buccaneer Power
The nicely is presently 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 line with a third-party reserves report, the nicely comprises roughly 51,000 bbl of proved developed producing (PDP) reserves, with a PV-10 worth of about $910,000. Extra upside is anticipated from a deliberate waterflood and Buccaneer’s Natural Oil Restoration (OOR) program, which may enhance recoverable volumes to greater than 250,000 bbl.
The acquisition additionally will increase Buccaneer’s working curiosity within the proposed Fouke waterflood unit to better than 50%, enhancing its operational management within the space.
“The completion of the acquisition of the Carlisle-1 nicely instantly will increase our manufacturing and money move whereas strengthening our strategic place inside the Fouke space of the Pine Mills subject,” stated CEO Paul Welch.
The corporate expects the asset to ship a payout interval of roughly 9 months beneath present market situations.
