Announcement • Jul 13
Buccaneer Energy plc announces Production and Operations Update Buccaneer Energy provided the following update on operations at its Pine Mills field in East Texas. Production and Financial Performance: The Company's current average net production is approximately 135 bopd, with the asset generating positive free cash flow at current oil prices. When the current management team assumed responsibility for Buccaneer in mid-2024, Pine Mills was producing approximately 54 barrels of oil per day (bopd) after a period of underinvestment and cash-flow misallocation. In May 2026, the Pine Mills and Fouke assets generated approximately $250,000 in positive net cash flow to the Company at realised prices exceeding $100 per barrel, reflecting the quality of the reservoir and the material improvement in operational efficiency achieved over the past 24 months. This continued strengthening of the Texas platform underpins the Board's growing focus on identifying opportunities of materially greater scale, as set out further below. Operating costs have been reduced to manageable levels, with general and administrative expenses ("G&A"), comprising principally listing costs and staffing, now running well within the cash generated by the existing production base, allowing the Company to comfortably service interest on its legacy debt obligations. and now begin to pay down its outstanding debt, further strengthening its financial position. The Company continues to maintain a constructive relationship with WAFD Bank, its lending facility provider. Having stabilised the cost base and established a solid foundation for growth, the Company's focus is now shifting towards incremental organic production upside across the existing asset base. The Carlisle-1 acquisition is illustrative of this high-return approach: management has applied throughout the turnarounda modest, disciplined investment delivering rapid payback and immediate cash flow contribution. The Carlisle acquisition, combined with the Fouke enhanced recovery scheme and the Pine Mills Organic Oil Recovery (OOR) program, provides the foundation upon which the Board expects to organically grow average net production towards approximately 250 bopd in the near term. The Fouke area waterflood programme remains on schedule to commence in the late third quarter of 2026. Unitisation of leaseholders is progressing, and the acquisition of the Carlisle-1 well earlier this year for $425,000 has increased the Company's working interest in the proposed waterflood unit to above 50%, giving Buccaneer operational control of the programme going forward. The Carlisle-1 well has added approximately 25 barrels of oil per day (bopd) and generated $65,000 of free cash flow in May alone, implying payback in just over six months. The OOR pilot programme, initiated at the end of 2025 in partnership with Hunting PLC, has continued to deliver encouraging results. One treated well moved from a 90% water cut to effectively water-free production, a result that has been sustained over the four months post-treatment. The reduction in water-handling requirements has a direct and material impact on operating costs, as the power required for water management is the second-largest cost component at Pine Mills after staffing. The Company intends to expand the OOR programme across the field in progressive stages without material upfront capital investment. Through a disciplined programme of workovers, cost reduction, and a targeted bolt-on acquisition, production has increased significantly since 2024, the Company is cash-generative, and legacy liabilities are being well managed. The Board views the Texas operations as the foundation from which the Company is now positioned to pursue opportunities in both local and potentially international energy markets where the Board sees the opportunity to deliver higher-value returns to shareholders. Buccaneer is actively evaluating opportunities that reflect the Board's ambition to build a business of materially greater scale, and the Company looks forward to providing further updates in due course. New Risk • Jun 02
New major risk - Revenue and earnings growth Earnings have declined by 13% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (13% average weekly change). Negative equity (-US$1.4m). Earnings have declined by 13% per year over the past 5 years. Shareholders have been substantially diluted in the past year (289% increase in shares outstanding). Market cap is less than US$10m (UK£2.04m market cap, or US$2.75m). Minor Risk Revenue is less than US$5m (US$1.5m revenue). Reported Earnings • May 31
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: US$0. Revenue: US$1.51m (down 26% from FY 2024). Net loss: US$2.18m (loss widened 44% from FY 2024). Revenue missed analyst estimates by 36%. Earnings per share (EPS) exceeded analyst estimates. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 1.9% growth forecast for the Oil and Gas industry in the United Kingdom. 
