Buccaneer Resources to Redevelop Pompano Prospect
Buccaneer Resources has entered into a letter of intent with AnaTexas Offshore, Inc., related to the drilling and redevelopment of Brazos 466, better known as the Pompano Prospect. That property was discovered by Shell and operated throughout the 1990s by Zapata. New 3-D seismic coupled with enhanced recovery technology will be deployed to redevelop the field.
"Pompano characterized the low-risk, stacked-pay, high-return property targeted by Buccaneer for investment," said Curtis Burton, chairman and CEO of Buccaneer. "It closely parallels our first success in January 2007, where a multiple stacked-pay objective was successfully drilled and is currently being placed on production."
Burton said that Brazos 466 aligns with Buccaneer's plan of rapid growth with multiple funding partners. "Over a six-month period, we were able to put together a diverse group of funders for the $50 million project and expect to repeat this process over the coming three months on at least three other similar-sized properties," Burton said. He added that Buccaneer continues to seek funding partners "whose spirit of innovation matches our own."
Buccaneer Resources and AnaTexas Offshore, both Houston-based, agreed to develop AnaTexas's leases in the Brazos Block 446-L SE/4 Field, offshore Matagorda County, Texas. AnaTexas will be the operator of the Pompano Prospect.
The field is situated in 54 feet of water in the Gulf of Mexico, about 30 miles east of Port O'Connor, Texas. The companies plan to commit in excess of $50 million to drill and complete up to six wells in the field, which was originally discovered by Shell in 1966.
Buccaneer Resources and its partners will own 90 percent interest in the property under the deal terms before payout.
Clint Wainwright, chairman and president of AnaTexas, said, "We are extremely pleased to have Buccaneer Resources as a funding partner in such a promising in-field initial project establishing AnaTexas operations in the Gulf of Mexico."
The companies plan to commence drilling operations in the third quarter of 2007.