Buccaneer Energy Ltd. has completed arrangements to secure rights in respect of the Glacier drilling rig.

The rig was owned by Glacier Drilling Co., a wholly owned subsidiary of the Marathon Oil Co. The company has facilitated the purchase of the Glacier rig by a third party that specializes in the energy sector.

The new owner and a wholly owned subsidiary of the company, Kenai Land Ventures LLC, has entered into a three-year bare rig agreement.

Kenai Land has exclusive access to the Glacier rig during this period, or it can lease the rig to third parties and charge a premium to the lease rate it is charged by the owner.

Kenai Land has an option to purchase the Glacier rig at any time after the first six months for $7.3 million. Upon exercise of the option to purchase, a portion of the lease payments paid to that time will be credited against the purchase price.

The Glacier rig is a Mesa 1000 carrier, mounted land drilling rig. It can drill to depths of approximately 15,000 ft (4,572 m). The rig is unique in that it was designed and built with the input of the drillers that would operate the rig on the Kenai Peninsula, Alaska. the rig was designed to operate close to neighborhoods on Alaska's Kenai Peninsula. The small size is ideal for pad drilling, minimizing the drilling footprint and impact to its surroundings.

Buccaneer director, Dean Gallegos, said, "This transaction will allow us to immediately secure an enabling asset in the Cook Inlet in what is a tight rig environment for three years.”

"The lease back and option to purchase conserves capital for development of the company's Kenai Loop project, ensures timely drilling at our Kenai Loop project, and also assists by controlling the costs associated with the project," Gallegos concluded.