BlueCrest gets more time to secure Cosmo funds

by on July 27, 2012 3:20 am BST

Pioneer agreed to sell the field to Texas-based BlueCrest Energy
and Australia’s Buccaneer Energy

earlier this year
for an undisclosed sum, with the pair taking a 75%
and 25% stake respectively.

Buccaneer said Pioneer had so far granted two extensions to the
settlement date but noted both had been requested by BlueCrest.

The latest extension pushes back the settlement date until 14
August to give BlueCrest more time to put financing in place to
settle its share of the purchase. The deal had originally been
scheduled to settle on 30 March.

Buccaneer said it was fully funded to settle its 25% interest in
the field and added that it was working with undisclosed third
parties who have expressed an interest in taking BlueCrest’s place in the deal.

“These parties have confirmed that they would like to proceed
and fund the acquisition of the remaining 75.0% working interest if
BlueCrest are unable to proceed to settlement,” the Australian
company said in a statement.

Cosmo is an undeveloped oil and gas field which lies in 50 feet
of water in the Cook Inlet close to the shoreline at Anchor Point
on the Kenai Peninsula.

The project is estimated to contain proven plus probable
reserves 90 billion cubic feet of gas and 44 million barrels of oil
according to an independent report by consulting firm Ralph E

Development of the field is expected to take place from late
2012 through to 2014 with the partners eyeing two separate
development plans.

The first plan involves a shallow gas development which will be
drilled using a jack-up rig, while the second plan is for a deeper
oil development which will involve directionally drilled wells from
the existing onshore production site on the shoreline.