Buccaneer Energy Ltd. (OTC: BCGYF) executed binding agreements to sell certain assets in its Alaska operations totalling US$65.2 million, the Houston-headquartered company announced Jan. 2.

The company executed a sale and purchase agreement with BlueCrest Energy Inc. to sale 25% interest in the Cosmopolitan project located offshore Alaska in the Cook Inlet for US$41.25 million including the repayment of a US$1.25 million bond.

As part of the transaction, BlueCrest executed a rig assignment agreement where it has agreed to use the Endeavour jack-up rig for a minimum of 150 days comprised of 50 rig working days during the "winter seasons" until 2016. BlueCrest has agreed to a minimum daily rate of US$175,000 per day and will lodge a letter of credit in favour of the company for US$5 million to underwrite its use of the Endeavour.

The sale gives Buccaneer the opportunity to monetize an asset in which it holds a minority interest at a significant premium to its sunk costs. The transaction is expected to close in min-January.

Additionally, the company executed a membership interest purchase agreement with Teras Investments Pte. Ltd. for the sale of 50% equity interests in Kenai Offshore Ventures LLC (KOV) for US$23.95 million.

KOV owns the Endeavour jack-up rig operated by Buccaneer in the Cook Inlet of Alaska under a bare boat charter agreement with its wholly owned subsidiary, Kenai Drilling LLC, which expires Oct. 29, 2017. The company will continue to operate the Endeavour jack-up rig after the sale of its interest in KOV. The transaction is part of the company's goal to sell its ownership in the rig while maintaining control of the asset for its drilling operations in Alaska.

Proceeds from the sale will be used to repay unsecured loans of US$11.2 million that are due on Jan. 25 and for working capital purposes. The sale is expected to close in mid-January.

"The proposed transactions are designed to enhance the company's balance sheet. Post completion, Buccaneer will have working capital and will be essentially debt free," Curtis Burton, managing director and CEO, said in the release.