WAFD Bank – Borrowing Base Reserve Update
Buccaneer Energy Plc has announced an update to its borrowing base reserve valuation with WAFD Bank, confirming a 6% increase in total net proved reserves, resulting in an NPV10 of $9.6 million, despite the lender applying a more conservative oil price outlook with a 14% reduction in near-term price assumptions. The company's borrowing base under the WAFD senior facility remains confirmed at $4.25 million, supported by the resilience and low operating costs of its onshore Texas assets.
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Buccaneer Energy (AIM: BUCE), the international oil & gas exploration and production company with a portfolio of production and development assets in Texas, USA, is pleased to announce that it has completed a reserve valuation update in connection with its credit facility with WAFD Bank ("WAFD"), formerly Washington Federal Savings and Loan.
The updated valuation confirms an increase in proved reserve volumes and supports the continued strength of the Company's asset base, notwithstanding a more conservative oil price outlook applied by the lender.
Paul Welch, Buccaneer Energy's Chief Executive Officer, said:
"We are encouraged by the outcome of the latest borrowing base review, which demonstrates the underlying strength and resilience of our asset base. Total proved net reserves increased by 6% while forecast cash flows remain broadly stable year on year, despite WAFD's near-term oil price assumption being reduced by $7.45 per barrel, or 14%, to reflect its outlook on global oil markets.
Our onshore Texas assets continue to benefit from low operating costs, enabling the business to perform well in the current pricing environment. "
Highlights
| • | Total net proved reserves increased by 6%, based on the latest independent reserve review | |
| • | NPV10 of US$9.6 million, reflecting stable underlying cash flows | |
| • | Borrowing Base confirmed at US$4.25 million under the WAFD senior facility | |
| • | Conservative lender price deck applied; near-term oil price assumptions reduced by 14% | |
| • | Texas asset base continues to demonstrate low operating costs and resilience | |
| WAFD Bank Valuation (WAFD Pricing) | Buccaneer Valuation - $60 Flat | |
| • | Future Net Income: $21,478,370 | Future Net Income: $21,321,860 |
| • | NPV9: $9,279,920 | NPV 10 : $9,561,740 |
| WAFD Senior Facility | ||
| • | Borrowing Base of $4,250,000 | |
| • | Current Interest Rate: 6.75% | |
Senior Facility & Corporate Valuation
The size of the Facility and Borrowing Base will continue to be reassessed at least twice yearly. The Board anticipates that the Facility and Borrowing Base will continue to expand as the Company's production, cashflows and reserves increase. The current interest rate on the facility is 6.75% and is indexed to the WSJ prime rate. The Facility is not restricted to any geographical region and can expand further with the acquisition or development of other producing assets.
Asset Valuation
WAFD has updated its borrowing base using a report from a third-party engineering firm, APN Energy Consultants LLC ("APN"), effective 1 December 2025. APN prepared the report for the Company to submit to WAFD.
Assets included in the borrowing base are as follows:
| Asset | Operator | BUCE Interest (%) | Status | Lease expiration | Total Acres (gross) |
|---|---|---|---|---|---|
| Pine Mills | BUCE | 100% | Producing and Development | HBP | 2,320 |
| Fouke | Cypress | 32.5% | Producing and Development | HBP | 160 |
| Permian Basin | BUCE | 53% | Producing and Development | HBP | 160 |
Future Net Income attributable to the Company's interest, as determined by WAFD using the price deck listed below, is calculated after deducting estimated future operating and development costs, production and ad valorem taxes, but before Federal income taxes.
| Category | Future Net Income (USD) | Net Present Value 9% Discount Rate (USD) |
|---|---|---|
| Proved Developed Producing | $13,750,450 | $5,506,670 |
| Proved Developed Non-Producing | $6,103,300 | $3,225,700 |
| Proved Undeveloped | $1,624,620 | $547.55 |
| Total Proved | $21,478,370 | $9,279,920 |
Future revenues were estimated using a WTI oil price forecast supplied by the lender:
| Year | Oil ($/bbl) | ||
|---|---|---|---|
| 2025 | $56.30 | ||
| 2026 | $55.20 | ||
| 2027 | $55.45 | ||
| 2028 | $56.75 | ||
| 2029 | $57.95 | ||
| 3% Price Escalation to Cap | $70.00 CAP | ||
| Dec-24 | |||
| Reserve Class and Category | Gross Oil and Condensate (Mbbl) | Net Oil and Condensate (Mbbl) | |
| Proved Developed Producing | 1,128.35 | 438.58 | |
| Proved Developed Non-Producing | 177.77 | 137.38 | |
| Proved Undeveloped | 145.84 | 54.36 | |
| Total Proved | 1,451.96 | 630.32 | |
| Dec-25 | |||
| Reserve Class and Category | Gross Oil and Condensate (Mbbl) | Net Oil and Condensate (Mbbl) | |
| Proved Developed Producing | 1,048.08 | 472.13 | |
| Proved Developed Non-Producing | 344.26 | 141.36 | |
| Proved Undeveloped | 145.84 | 54.36 | |
| Total Proved | 1,538.18 | 667.85 | |
| Difference | |||
| Reserve Class and Category | Gross Oil and Condensate (Mbbl) | Net Oil and Condensate (Mbbl) | % |
| Proved Developed Producing | (80.27) | 33.55 | 8% |
| Proved Developed Non-Producing | 166.49 | 3.98 | 3% |
| Proved Undeveloped | 0.00 | 0.00 | 0% |
| Total Proved | 86.22 | 37.53 | 6% |
Borrowing Base - the amount of money that a lender is willing to loan a company, based on the value of the collateral the company pledges.
Future Net Income or FNI - the projected Gross Revenues expected to be realised by the Company during the productive life of the asset less the sum of the Operating Costs payable.
Gross - total quantity or amount.
HBP - Held by Production.
Net - quantity or amount associated with Buccaneer's interest.
Net Present Value or NPV - the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
WSJ - Wall Street Journal
WTI - West Texas Intermediate crude oil benchmark price in $/bbl.
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