Australian oil and gas company Buccaneer Energy has announced plans to advance the next stage of development in the Fouke area of the Pine Mills field in Texas, US.
The company intends to implement a secondary oil recovery scheme (waterflood) in the Fouke area, where it holds a 32.5% working interest, using water injection.
This decision follows a technical review of the Allar #1 well and the recent acquisition of adjacent acreage.
Buccaneer said that the waterflood scheme will use the Turner #1 and Daniel #1 wells as dedicated injection points.
The two wells are located at the downdip edges of the productive reservoir interval, which the company has identified as suitable for water injection.
The newly acquired lease provides the necessary locations to begin this phase.
By injecting water, Buccaneer aims to increase reservoir pressure, which is expected to stabilise and improve oil recovery rates from the field.
The company has been using waterflooding in the Pine Mills region for more than five decades. Primary recovery in the area reached 333,851 barrels (bbl) of oil as of September 2025.
Buccaneer estimates that the waterflood could yield an additional 667,000–1,002,000bbl of recoverable oil.
The Turner #1 well will return to production before the waterflood system becomes operational, providing additional output during the preparation phase, the company said.
In the Pine Mills field and surrounding areas, primary recovery typically accounts for 5–20% of the original oil in place, with an average of around 15%.
Waterflood operations have historically increased recovery rates to between 30% and 50% of the original oil in place, according to the company.
Buccaneer expects similar improvements in the Fouke area, with recoverable volumes projected to rise by two to three times.
The company plans to drill the Fouke #4 well and sidetrack the Allar #1 well after the waterflood system is commissioned.
Before the start of water injection, the Texas Railroad Commission requires the creation of a waterflood unit, comprising all leaseholders and royalty owners in the area.
Buccaneer expects the process of forming the unit and constructing waterflood facilities to take up to six months.
Meanwhile, the company will reinstate production from Turner #1, contributing to field output as preparatory work continues.
Buccaneer Energy CEO Paul Welch said: “The decision to initiate a waterflood in the Fouke area marks a key step forward in maximising long-term value from our Pine Mills assets. Waterflooding has a proven track record in these reservoirs, and we believe the Turner #1 and Daniel #1 wells provide ideal injection points to support a highly effective recovery scheme.
“We are confident that this programme will materially increase recoverable reserves and enhance the field's production profile. We look forward to updating investors as we progress the regulatory and technical workstreams required for implementation.”
