Buccaneer Energy announced that it has been informed by the US Federal Government's Minerals Management Service (MMS) that it has been awarded the lease on Eugene Island Block 147, named the Jaguar Project, on which the company submitted the high bid at the March 19, 2008 Central GOM Lease Sale through Millennium Explorer, LLC's affiliate, Baron Petroleum Company.
The Jaguar Project is a 5,000 acre block in the Eugene Island Area 30 miles off the coast of Louisiana in the Gulf of Mexico in approximately 50 feet of water. This project is another of the company's low risk, field re-development gas and condensate prospects with multiple well opportunities that includes attractive upside reserve potential.
The company believes that the lease holds significant Proved Undeveloped Reserves (PUD) in both gas and condensate. As the block is in shallow waters with existing infrastructure in place, it can be drilled and placed on production during 2008.
The company has rights to a 100% working interest and a 78% net royalty interest (Federal Government Royalty of 18.75% and override royalty interest of 3.25% to Millennium Explorer, LLC) in the Jaguar project.
"We see the award of the Jaguar Project as another step in Buccaneer's growth story," said CEO Curtis Burton. "After successfully drilling the Pompano Prospect early this year, Buccaneer has been able to repeat the strategy and identify and capture the Jaguar Prospect meeting the same low risk criteria with Proven Undeveloped Reserves, multiple objectives and large upside potential; and which can be drilled on production in the near term."
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