Buccaneer Energy has finalized a $5 million credit facility with Macquarie bank in Australia. This initial tranche of funding is part of a significantly larger facility being negotiated. The capital will supplement the company's excellent cash flow coming from the two recently drilled wells producing on the Pompano project. All the funds will be used to continue development of Buccaneer's Pompano and other projects.
Macquarie bank is one of the largest banks in Australia and is an ideal partner for Buccaneer Energy. In addition to the credit line, Macquarie has received a small number of unlisted options in the company that mature at a $0.40 share price.
"Using Macquarie to supplement our cash flow from production is just one more step in executing our business plan," said Curtis Burton, CEO of Buccaneer Energy. "Our current cash flow from production, combined with external capital, will allow Buccaneer to rapidly diversify its production and augment its bottom line much more rapidly than simply progressing development on the basis of cash flow."
Buccaneer Energy is off to a running start. After going public in November 2007, the company successfully drilled two wells and put them into production within the first six months of operation as a public company. The company also has outlined an aggressive drilling program that could include up to eight more wells before the end of 2008.
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