Australia Markets close in 2 hrs 4 mins

Buccaneer Energy Limited (ASX:BCC) Placement & Unsecured Loan To Raise A$19.2 Million

Sydney, Australia, Dec 27, 2012 - (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC.AX - News) (PNK:BCGYF - News) is pleased to advise that on the evening of the 24 December 2012 it executed binding agreements for the issue of 198,000,000 shares in the Company at an issue price of $0.047 to raise a total of $9.3 million ("the Placement") and for an unsecured loan of $9.9 million ("the Loan"), for total funds raised of $19.2 million (US$20.0 million).

The issue price of $0.047 is a 13.0% discount to the last closing price.

The Placement will be undertaken under the Company's 15% limit allowed under ASX Listing Rule 7.1 and therefore does not require shareholder approval, the Placement is scheduled to close on 31 December 2012. The Placement and Loan were subscribed equally by three high net worth Asian based investors with a history of investing in and operating businesses in the energy sector. Each subscriber will have a 4.3% interest in the Company.

The Loan is repayable 12 months after draw down, with draw down expected in mid January 2013.

The proceeds of the Placement and Loan will be used for the following purposes:

- Support the Company's offshore and onshore Cook Inlet exploration program;

- Additional contributions to Kenai Offshore Ventures, LLC that will be used to finalise the modifications and upgrades to the Endeavour jack-up rig; and

- Costs of the issue and general working capital.

Refinance of Existing Facilities

The Company is in the final stages of a refinance of the existing secured US$20.0 M term loan that expires 16 January 2013 and US$30.0 million ACES Revolver that expires in December 2013 with a new facility with a substantial longer maturity date.

The new $9.9 million (US$10.3 million) unsecured loan is additional to the existing term loan and the anticipated new facility when the refinance is completed.

It is anticipated that the refinancing of the existing US$20.0 million term loan will be structured as a reserve based lending facility with a borrowing based determined upon proved developed producing ("PDP") reserves at the Company's 100% owned Kenai Loop project. Dependent on the successful testing of the Kenai Loop # 4 well the Company would expect that the borrowing base available for draw down will substantially increase thereby making more funds available for the development of the Company's Kenai Loop project.

Buccaneer Director Dean Gallegos said:

"The Company has had a substantial amount of interest from both existing shareholders and new investors and believes that the combination of both equity and unsecured loans both strengthens the Company's balance sheet and limits dilution of existing shareholders.

We are about to embark on a parallel drilling program for both our onshore and offshore projects and we see the next 6-12 months as an exciting one for the Company and its shareholders"

View the announcement here:

About Buccaneer Energy Limited:

Buccaneer Energy Limited (ASX:BCC.AX - News) is an Australian listed company focused on onshore and shallow waters of the Cook Inlet of Alaska and the Gulf of Mexico, as well as onshore Gulf Coast assets that have been left behind or overlooked by other players.

The Company has a large existing portfolio and disciplined acquisition strategy focused on opportunities with:

- Assets with attractive economics;
- Assets that have existing infrastructure in place that can be accessed;
- Assets near a commercial market that has been de-risked; and
- Assets that have multiple stacked pay targets.

Buccaneer's management team has a proven track record of finding and exploiting oil and gas reserves and generating new opportunity deal flow.


Buccaneer Energy Limited T: +61-2-9233-2520 F: +61-2-9233-2530 WWW:


Buccaneer Energy Limited

Copyright (C) 2012 ABN Newswire. All rights reserved.