Reserve Valuation Update
Buccaneer Energy PLC has announced a significant update to its reserve volumes and net present value (NPV) in connection with its credit facility with WAFD Bank. Total net proved reserves have increased by 18%, and forecast cash flow has risen by 27% under the WAFD borrowing base valuation, resulting in an NPV9 of US$11.8 million. The borrowing base has been confirmed at US$4.45 million, with WAFD's near-term oil price assumption for 2026 increased to US$70 per barrel. The acquisition of Carlisle-1 has boosted Buccaneer's equity in the Fouke enhanced recovery area, with that project expected to commence production in Q4 2026.
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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 forecast cash flow, supporting the continued strength of the Company's asset base, notwithstanding the lender's more conservative oil price outlook.
Highlights
| · | Total net proved reserves increased by 18%, based on the latest independent reserve review |
| · | Forecast cash flow increased by 27% under the WAFD borrowing base valuation |
| · | NPV9 increased to US$11.8 million under WAFD pricing |
| · | Borrowing Base confirmed at US$4.45 million under the WAFD senior facility |
| · | WAFD near-term oil price assumption increased to US$70/bbl for 2026 |
| · | Carlisle-1 acquisition increased Buccaneer's equity position in the Fouke enhanced recovery area |
| · | Fouke enhanced recovery project anticipated to come onstream in Q4 2026 |
| · | Texas asset base continues to demonstrate low operating costs and resilience |
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 18% while forecast cash flow increased by 27% using WAFD's near-term oil price assumption of $70 per barrel, to reflect its outlook on global oil markets.
Our onshore Texas asset base has increased with the acquisition of the Carlisle-1 well in March of this year. This strategic acquisition has increased our equity position in the Fouke enhanced recovery area, increasing our proved undeveloped asset base by 68%. This project is anticipated to be onstream in the 4th quarter of 2026 and is expected to lead to a further increase in the lending base.
Our onshore position continues to benefit from low operating costs, enabling the business to perform well in the current pricing environment while retaining meaningful upside as production, cash flow and reserves continue to grow."
| WAFD Bank Valuation (WAFD Pricing) | Valuation @ WTI Strip Pricing | |
| • | Future Net Income: $23,521,530 | Future Net Income: $23,065,960 |
| • | NPV9: $11,768,150 | NPV10: $11,726,010 |
| WAFD Senior Facility | ||
| • | Borrowing Base of $4,450,000 | |
| • | 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. All reserve estimates have been prepared using standard petroleum engineering practices and conform to the guidelines contained within the Petroleum Resources Management System (PRMS).
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 | SWJN | 53% | Producing and Development | HBP | 160 |
| Carlisle 1 | BUCE | 100% | Producing and Development | HBP | 46 |
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.
Dec-25
| 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 | $547,550.00 | |
| Total Proved | $21,478,370 | $9,279,920 | |
| Jun-26 | |||
| Category | Future Net Income (USD) | Net Present Value | % |
| 9% Discount Rate (USD) | |||
| Proved Developed Producing | $13,232,940 | $5,981,590 | 9% |
| Proved Developed Non-Producing | $8,709,240 | $5,220,510 | 62% |
| Proved Undeveloped | $1,579,350 | $566,040.00 | 3% |
| Total Proved | $23,521,530 | $11,768,150 | 27% |
Future revenues use a WTI oil price forecast supplied by the lender (WAFD) and dated Strip pricing:
| WAFD - 12/2025 | WAFD - 6/2026 | Strip - Jun 16, 2026 | |||
|---|---|---|---|---|---|
| Year | Oil ($/bbl) | Year | Oil ($/bbl) | Year | Oil ($/bbl) |
| 2025 | $56.30 | 2025 | -- | 2025 | -- |
| 2026 | $55.20 | 2026 | $70.00 | 2026 | $73.16 |
| 2027 | $55.45 | 2027 | $68.50 | 2027 | $67.36 |
| 2028 | $56.75 | 2028 | $63.50 | 2028 | $64.78 |
| 2029 | $57.95 | 2029 | $62.25 | 2029 | $62.88 |
| 2030 | -- | 2030 | $59.50 | 2030 | $61.04 |
| 3% Price Escalation to Cap | $70.00 CAP | 3% Price Escalation to Cap | $70.00 CAP | Flat @ $61.02 to 2050 | No Cap |
| 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 | |||
| Jun-26 | |||||
| Reserve Class and Category | Gross Oil and Condensate (Mbbl) | Net Oil and Condensate (Mbbl) | |||
| Proved Developed Producing | 885.26 | 495.22 | |||
| Proved Developed Non-Producing | 387.45 | 237.1 | |||
| Proved Undeveloped | 145.84 | 54.36 | |||
| Total Proved | 1,418.55 | 786.68 | |||
| Difference | |||||
| Reserve Class and Category | Gross Oil and Condensate (Mbbl) | Net Oil and Condensate (Mbbl) | % | ||
| Proved Developed Producing | -162.82 | 23.09 | 5% | ||
| Proved Developed Non-Producing | 43.19 | 95.74 | 68% | ||
| Proved Undeveloped | 0 | 0 | 0% | ||
| Total Proved | -119.63 | 118.83 | 18% | ||
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.
PRMS - a standard which has been approved by the Society of Petroleum Engineers (SPE), the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG), the Society of Petroleum Evaluation Engineers (SPEE), the Society of Exploration Geophysicists (SEC), the Society of Petrophysicists and Well Log Analysts (SPWLA), and the European Association of Geoscientists & Engineers (EAGE) in 2018. The PRMS is available in its entirety for review online at www.spe.org.
WSJ - Wall Street Journal
WTI - West Texas Intermediate crude oil benchmark price in $/bbl.
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