Buccaneer Energy Limited advise that it has executed binding agreements to sell certain assets and lower operating expenses. The details are as follows:
Sale of Cosmopolitan Project
The Company has executed a Sale and Purchase Agreement with BlueCrest Energy Inc. ('BlueCrest') for the sale of its 25% interest in the Cosmopolitan project. Total consideration raised for the Company by the sale is US$41.25 million, inclusive of the repayment of a US$1.25 million bond.
The Company acquired its interest in the Cosmopolitan project in August 2012, and to date has expended approximately US$9.0 million. This amount is inclusive of acquisition costs and costs associated with the drilling of the Cosmopolitan State # 1 well, net of ACES rebates.
As part of the transaction, BlueCrest has executed a Rig Assignment Agreement where it has agreed to use the Endeavour jack-up rig for a minimum of 150 days comprised of 50 rig working days during each of the following 'Winter Seasons' extending from 16 November 2013 to 15 April 2014, 16 November 2014 to 15 April 2015 and 16 November 2015 to 15 April 2016.