Buccaneer Energy expands Texas output with Carlisle-1 well acquisition
(WO) - Buccaneer Energy has acquired a 100% working interest in the Carlisle-1 well in the Pine Mills field, East Texas, strengthening its position in the Fouke area and increasing near-term production and cash flow.
The well is currently producing about 25 bopd, lifting the company’s total output to approximately 155 bopd. Carlisle-1 benefits from low operating costs of about $6.23/bbl and generates strong margins, with an estimated netback of roughly $65/bbl at current oil prices.
According to a third-party reserves report, the well contains approximately 51,000 bbl of proved developed producing (PDP) reserves, with a PV-10 value of about $910,000. Additional upside is expected from a planned waterflood and Buccaneer’s Organic Oil Recovery (OOR) program, which could increase recoverable volumes to more than 250,000 bbl.
The acquisition also increases Buccaneer’s working interest in the proposed Fouke waterflood unit to greater than 50%, enhancing its operational control in the area.
“The completion of the acquisition of the Carlisle-1 well immediately increases our production and cash flow while strengthening our strategic position within the Fouke area of the Pine Mills field,” said CEO Paul Welch.
The company expects the asset to deliver a payout period of roughly nine months under current market conditions.
