BCC:ASX Buccaneer Energy

[atucagugebe]

Buccaneer Energy is publicly traded on the Australian Exchange, but all of it's people and operations are US based. Very interesting company with some pretty big announcements.

http://www.buccaneerresources.com/

I don't know if any of you have checked the Australian Exchange but this is trading at a very low price and has some real upside in it.

[avedxrnv26]

Company posted thier presentation yesterday, significantly bigger with thier recent buy in Alaska. Pretty much says it all. They have Oil in Lee County Texas, Natural Gas in the Gulf of Mexico, and Really big reserves in Alaska in a producing field and have both oil and natural gas.

[avidinuq]

To understand why Buccaneer is going to Alaska it helps to understand the stage the region is in. It helps to compare Alaska to the North Sea. In the early 90?s the North Sea, the largest producing area for the UK and Western Europe was the play ground for the majors, Exxon, Shell, BP, Statoil, etc. locked up the acreage and produced 90% of the crude. It required big dollars and big regulations to make the North Sea produce oil so the independents were priced out of the market. Producing in the region was supposed to go on forever, taxes would be paid and the companies would make big dollars putting great big fields on line.

Then in the mid 90?s the game changed. The fields began producing less, new environmental regulations raised the bar on exploration and less oil was found. Very soon North Sea production had peaked and revenue from the region was slowly fading away. The large internationals were finding better opportunities elsewhere in the world and reworking their budgets appropriately.

Does this sound familiar? In Alaska the North Slope has peaked and of course the Cook Inlet has also peaked. The Alaska Pipeline used to carry the oil down to the lower 48 may shut down 2018. Today, production is falling and the regulations and tax regime is causing the International Oil Companies to find more fertile ground to till. At the last lease sale on the North Slope only three bidders put their hats in the ring.