(Sharecast News) - Buccaneer Energy reported a wider annual loss for 2025 on Friday, as weaker oil prices and lower production offset progress across its East Texas operations, while the company said higher crude prices since the outbreak of the Middle East conflict could support margins in 2026.
The AIM-traded oil and gas company, formerly Nostra Terra Oil & Gas, said revenue for the year ended 31 December fell 26% to $1.5m from $2.0m in 2024, mainly reflecting a lower average realised oil price of $61.76 per barrel, compared with $72.24 a year earlier, and a 15% fall in produced volumes.

Gross losses were $0.4m, compared with a gross profit of $0.1m in 2024, after production costs of $1.2m and depletion, depreciation and amortisation of $0.7m.

The company reported an operating loss of $1.8m, widening from $1.1m, while loss before tax increased to $2.2m from $1.5m.

Basic and diluted losses per share narrowed to 0.02 cents from 0.08 cents, reflecting a higher weighted average share count.

Cash at year end was $117,000, compared with $106,000 a year earlier, while net liabilities stood at $1.4m.

Buccaneer had borrowings of $4.25m at year end, broadly unchanged from 2024, under a facility secured against its assets.

The facility was extended in January 2025 for three years to January 2028.

The auditor drew attention to a material uncertainty related to going concern, noting the group's loss for the year, net current liabilities of $373,000 and net liabilities of $1.4m.

The directors said they expected to secure additional funding when required and considered the going concern basis appropriate.

Operationally, Buccaneer said it completed the second phase of a workover programme at Pine Mills in East Texas, returning all identified idle wells to production.

Production in the field peaked at 186 barrels of oil per day, up from around 50 barrels per day at the time of the management change, although volumes were later affected by spring flooding.

East Texas remained the company's core producing area, accounting for 89.4% of 2025 sales, while West Texas contributed 9.1% and South Texas 1.5%.

The company also drilled the Allar #1 development well in the Fouke area in October, where it holds a 32.5% working interest, but said the well was uneconomic after a significant section of reservoir was faulted out.

A future sidetrack remained under review after the acquisition of the Turner lease to the west of the existing acreage.

After the year end, Buccaneer acquired a 100% working interest in the Carlisle-1 well in the Fouke area, increasing its anticipated working interest in the planned Fouke waterflood to more than 50% and allowing it to become operator.

The company also said a post-period organic oil recovery pilot project at the northern end of Pine Mills had doubled oil production in the treated area while reducing water production and water cuts.

Chief executive Paul Welch said the company would look to "materially increase production in 2026" through the Fouke waterflood and a potential field-wide expansion of the organic oil recovery project, with meaningful production improvements expected from the third quarter.

Chairman Stephen Staley said Buccaneer would continue to "stick to the knitting" by focusing on low-cost East Texas assets, targeted acquisitions and operational improvements.

He said WTI prices had fallen from about $70 per barrel in early 2025 to $55 in December, before rising sharply after hostilities in Iran and the Gulf began in late February 2026.

"Prices at the time of writing are over $100 per barrel and, although forward price curves show prices falling later in 2026, they are not expected to fall to the levels of late 2025 for a considerable time to come," Staley said.

The company said its production remained unhedged, allowing it to benefit from the recovery in commodity prices.

"With continued progress being made at its operations, the board believes that Buccaneer's market capitalisation substantially undervalues it in relation to the value of its assets," Staley added.

Buccaneer said its annual general meeting would be held in London on 30 June.

At 1325 BST, shares in Buccaneer Energy were down 4.17% at 0.01p.

Reporting by Josh White for Sharecast.com.

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