Buccaneer Energy Plc (LSE:BUCE) has finished a pilot Organic Oil Recovery programme at its Pine Mills field in East Texas, using a nutrient-based microbial treatment to enhance production from mature wells.
The trial targeted one injection well and two producing wells in the Battery 3 section of the field. The treatment is designed to modify microbial activity within the reservoir, improving the mobility of residual oil in long-established waterflood operations. Following implementation, average production across the pilot area increased from roughly 15 barrels of oil per day to around 30 barrels per day. In addition, water cut at one well declined from 80% to zero, materially improving efficiency.
Management said the cost of the programme was in line with a standard workover, highlighting its potential as a low-capital method of unlocking additional reserves. The company believes the approach could help close the gap between Pine Mills’ assessed asset value and Buccaneer’s current market capitalisation.
Next steps include further treatments across the remaining wells within the pilot zone in March, with plans to roll out the Organic Oil Recovery process across the broader Pine Mills field in the second quarter of 2026. If successful at scale, the initiative could support higher production levels, stronger cash flow generation and improved competitiveness within the company’s focus on mature producing assets.
Despite the operational progress, the company’s overall outlook remains constrained by weak financial fundamentals, including ongoing losses, negative equity and negative operating and free cash flow. Technical indicators also remain bearish, with the shares trading below key moving averages and a negative MACD signal, although oversold conditions provide limited offset. Valuation support is minimal given negative earnings and the absence of a dividend yield.
More about Buccaneer Energy Plc
Buccaneer Energy Plc is an international exploration and production company focused on oil and gas assets in Texas, United States. The group concentrates on mature fields such as Pine Mills, aiming to enhance recovery rates and boost cash generation through cost-efficient optimisation techniques rather than large-scale drilling campaigns.
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