Wednesday, December 7, 2011

Buccaneer Energy Limited [BCC] - Completes ACES Bridge Funding Facility

HIGHLIGHTS

*US$50 million revolving credit facility with Centaurus Capital, LP
*Secured by Alaskan State Government Rebates
*Funds approximately 50% of future capital expenditure requirements

Buccaneer Energy Limited (ASX: BCC) is pleased to advise that its wholly owned subsidiary Buccaneer Alaska, LLC (“Buccaneer” or “the Company”) has executed a US$50.0 million senior asset backed revolving credit facility with Centaurus Capital LP, a Houston-based investment fund.

The credit facility, which matures in November 2016, is secured by receivables to be paid by the State of Alaska and available to the Company under the Alaskan Clear & Equitable Share (“ACES”) rebate program that was implemented by the State of Alaska in 2007. The Company intends to use the proceeds from the credit facility for drilling exploration and development activities on its five Alaska lease areas. This facility will provide approximately 50% of all capital expenditures on the aforementioned leases.

Under the ACES program all rebates for capital expenditure are paid between 5 and 18 months after expenditure has been incurred. While the maximum amount to be drawn down at any one time under the facility will be US$50 million, it is anticipated that a multiple of this amount will be utilized over the life of the facility.

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