AIDEA to join in jackup rig purchase for Alaska

Offshore staff

SYDNEY, Australia – The Alaskan Industrial Development and Export Authority will join Buccaneer Energy Ltd. to acquire a jackup drilling rig. The Authority will invest up to $30 million.

An agreement yet to be executed between the two establishes a set of conditions that must be met before Buccaneer’s subsidiary Kenai Offshore Ventures LLC can draw down the AIDEA investment.

Among the agreement points is that AIDEA’s ownership will be repurchased over a six-year period out of cash flow generated by contracting the rig for drilling. Buccaneer will have first right of refusal to contract the rig and to use it to drill at least four wells in Cook Inlet using the rig to meet earlier agreements with the agency.

04/06/2011