- Buccaneer Energy
- 19 August 2025 12:22:18
Source: Sharecast
The AIM-traded company placed four billion new shares at 0.015p each, supported by institutional investors, directors, management, existing shareholders and new investors.
It said the proceeds would be used to finance its 32.5% working interest in two development wells in the Fouke area, scheduled for September and December.
The firm said wells in the area had previously produced at rates of 124 barrels of oil per day without water.
Buccaneer said it was also assessing ways to monetise growing volumes of associated gas, including powering bitcoin mining operations, which it said had become increasingly common in Texas since 2022.
The company said it had appointed Appold, a blockchain and digital asset advisory firm, to advise on governance, custody, trading and risk management as it evaluated potential partnerships with bitcoin miners.
Buccaneer noted there coud be no certainty that an agreement would be reached or that such a strategy would generate returns.
“I am pleased to announce that we have completed a £0.6m fundraise for the progression of our major operational program at the Fouke Area in East Texas,” said chief executive Paul Welch.
“We have identified two additional development locations that are within the same reservoir section as the successful Fouke 1 and 2 wells.
“New interpretation of the 3D seismic, combined with the existing well performance, has demonstrated that the reservoir section continues to the North of the existing wells and has yet to be drained by the existing wells.”
Welch said that section of the reservoir had been producing at high rates over the last several years with increasing amounts of associated gas.
“This gas has restricted production in Fouke 2 and delayed the drilling of the remaining development wells.
“The gas volumes, however, were determined to be too small to develop a dedicated offtake pipeline but are sufficient to dedicate to a power project that can use the gas offtake to mine for Bitcoin, which is a preferred option to flaring the gas.”
“We have ambitious plans for this business, both organic and inorganic, and we look forward to sharing further updates with all our stakeholders in due course.”
Separately, Buccaneer said it had appointed Oak Securities as joint corporate broker alongside SP Angel.
Admission of the new shares to AIM was expected on or around 21 August, taking the company’s enlarged share capital to 11.35 billion shares.
At 1016 BST, shares in Buccaneer Energy were down 4.12% at 0.02p.
Reporting by Josh White for Sharecast.com.