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Buccaneer Energy Limited (ASX:BCC) US$100 Million Credit Facility Executed

Sydney, Australia, Jan 29, 2013 - (ABN Newswire) - Buccaneer Energy Limited (ASX:BCC.AX - News) is pleased to advise that it has executed binding agreements with Chicago-based Victory Park Capital ("Victory Park") for the provision of credit facilities totalling US$100 million.

The credit facilities are broken into a Delayed Draw Senior Secured Term Note ("the Term Note") with a maximum issue amount of US$75 million and a Senior Secured Revolver ("the Revolver," and collectively with the Term Note, the "Facility") with a maximum limit of US$25 million.

The amount that can be drawn by the Company (the "Borrowing Base") under the Term Note is predominantly determined by the value of the Proved Developed Producing ("PDP") reserves of the Company's 100%-owned Kenai Loop project. Additional capacity may be added by the value of the Company's Kenai Loop Proved Undeveloped ("PUD") reserves, appraised value of 2D and 3D seismic and appraised value of the Kenai Loop acreage.

Upon completion and acceptance of a third party reserve estimate of the Kenai Loop #4 well, the Company expects its Borrowing Base availability under the Term Note to increase to approximately US$50 to US$55 million.

The Revolver may be drawn to pre fund drilling and development expenses eligible to receive rebates from the State of Alaska under the ACES exploration and development incentive program. The Revolver can be used for development of the Company's onshore and offshore projects.

The Term Note can initially be used to fund the Company's onshore Kenai Loop projects and, in combination with the Revolver, is expected to be sufficient for the anticipated drilling programs at both Kenai Loop and West Eagle for 2013. Additional drilling success at Kenai Loop would further increase the available Borrowing Base under the Facility.

The Company has initially drawn on the Facility to refinance its previous lender and to pay fees and expenses associated with this transaction. The Facility expires on 30 June 2016 and is secured by the Company's U.S. assets. New York based Source Capital Group Inc. acted as sole Placement Agent for the transaction.

Buccaneer Finance Director Dean Gallegos said:

"The new Facility with Victory Park is another significant milestone for the Company and provides significant funding to continue development of our onshore and offshore assets in the Cook Inlet, Alaska.

Importantly, the Borrowing Base of the Facility is designed to grow as we grow. This allows the Company to maintain its development momentum and reduce reliance on equity to the benefit of our shareholders."

Victory Park Capital Investment Professional Derek Ferguson said:

"With expertise in providing specialized financing solutions to small and middle market companies, we feel very fortunate that we have the opportunity to provide financing to a dynamic and growing business such as Buccaneer.

Our facilities will help advance Buccaneer's future development efforts in the Cook Inlet, enabling the Company to strengthen its operations and expand its delivery of vital natural gas and other resources to customers and consumers alike throughout Alaska."

View the Buccaneer Energy announcement at the link below:

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

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