Buccaneer Secures $100 Million In Credit
Buccaneer Energy now has more financial resources to conduct its oil and gas operations in Alaska.
In a news release, the company announced new agreements with Chicago-based Victory Park Capital for $100 million in new capital funding. Company officials say that money can be used to fund projects around Cook Inlet, including the onshore Kenai Loop and West Eagle projects in Kenai and Homer.
Buccaneer Finance Director Dean Gallegos called the deal a “significant milestone” for the company that would allow it to maintain its development momentum in the Cook Inlet region.
Not mentioned in the news release is Buccaneer’s jack-up rig “Endeavor,” which has been plagued with problems since arriving in Homer last August. In addition to numerous repairs that have had to be done on the rig, a transition of drilling contractors has complicated things.
Spartan Drilling Company took over operations on the “Endeavor” from Archer Drilling earlier this month. Buccaneer and Archer are in a legal dispute, with Archer claiming it hasn’t been paid for work and Buccaneer claiming Archer did not do work on the rig it was supposed to do.
Homer City Manager Walt Wrede says the city has asked Buccaneer to move the Endeavor out of the harbor by March 1st, a date when construction is set to begin on a fender replacement project at the Deepwater Dock.