Bahamas Petroleum Company PLC Company and Farm-out Update (5636Q)
13 September 2017 - 4:00PM
UK Regulatory
TIDMBPC
RNS Number : 5636Q
Bahamas Petroleum Company PLC
13 September 2017
13 September 2017
Bahamas Petroleum Company plc
("Bahamas Petroleum" or the "Company")
Company and Farm-out Update
Bahamas Petroleum Company, the oil and gas exploration company
with significant prospective resources in licences in The
Commonwealth of The Bahamas provides the following update in
relation to its business and ongoing farm-out process:
-- In mid-July 2017, the Company completed the raising of US$3.5
million (GBP2.8 million) before expenses through a firm and
conditional placing of 280,000,000 new ordinary shares of 0.002p
each at a price of 1 pence each (the "Placing"). The purpose of the
Placing was to ensure the Company had sufficient funds available as
it pursues a farm-in, or other financing, to enable drilling of an
exploration well on the Company's southern licences in The
Bahamas.
-- Since completion of the capital raising, the Company has
actively continued its efforts to secure a farm-in or other
financing. Progress has been made, despite the European summer
holidays in August and the considerable disruptions to regional
business activity caused by Hurricanes Harvey (which largely
affected Houston) and Irma (affecting most of the Caribbean).
During this time, the Company has:
o entered into four new Non-Disclosure & Confidentiality
Agreements ("NDA's") with qualified prospective farm-in and
financing partners;
o executed or proposed two NDA's to allow new and extended data
sharing across the region to further add to the already extensive
BPC database;
o provided information to, and hosted or scheduled due diligence
visits from, five new prospective farm-in and financing partners,
and anticipates several additional visits in the coming weeks and
months as more normal business activities resume in the region;
o maintained ongoing contact with several prospective farm-in /
financing partners that had already undertaken technical due
diligence during the time of the capital raising. The Company hopes
to progress one or more of these parties to the next stage of the
process (non-binding term sheets) in the coming months;
o engaged external technical experts to conduct an overall
independent audit of BPC's own assessment of the total petroleum
system and targeted drill prospects utilising the full range of
BPC's exhaustive database. This external technical evaluation will
integrate global analogues from Mexico and the Middle East to
validate the Company's estimated recoverable volumes, both risked
and unrisked, as well as the geological chance of success;
o expanded ongoing dialogue with certain industry
intermediaries, including specialist investment banks, so as to
broaden the universe of potential farm-in and financing partners;
and
o As a result of a landslide win in The Bahamas general election
of May 2017, a new government took office; since that time, the
Company has been proactively meeting with representatives of the
new administration to ensure renewed appreciation for the Company's
activities and the significant potential economic and social
benefits the Company's project offers to The Bahamas. To-date, the
Company has met with a number of new Ministers and Government
officials, and will continue this programme of active engagement
with Government.
-- the Board and executive continue to forego fees and salary in
lieu of Company stock, under the previously
reported terms, until funding to execute the well obligation has
been secured.
Simon Potter, Chief Executive Officer of Bahamas Petroleum
Company, said:
"Securing a partnership and the funding necessary to enable
drilling to commence remains the Company's number one priority. We
are actively pursuing all avenues for the funding of the well, and
intend to provide regular updates as to our activities in this
regard to the extent permitted by commercial and confidentiality
considerations. The board and I strongly believe in the Company's
resources and are fully committed to delivering the initial
exploration well as a first step towards unlocking the potential
for oil and gas exploration in The Bahamas."
Ends
For further information, please contact:
Bahamas Petroleum Company plc Tel: +44 (0)
Simon Potter, Chief Executive 1624 647 882
Officer
Strand Hanson Limited - Nomad Tel: +44 (0)
Rory Murphy / James Spinney 20 7409 3494
Shore Capital Stockbrokers Limited Tel: +44 (0)
Jerry Keen / Toby Gibbs 207 408 4090
CAMARCO Tel: +44 (0)
Billy Clegg / Gordon Poole / 20 3757 4983
James Crothers
Notes to editors:
It is noted that despite the Company's efforts and confidence in
its ability to ultimately secure a farm-in or financing, no
assurance can be provided that a farm-in or other financing will be
concluded, or on what terms, or in what timeframe.
Bahamas Petroleum Company is an oil and gas exploration company
with 100% owned offshore licences exclusively focused on the
Commonwealth of The Bahamas. The Company has significant
prospective resources, which have been de-risked through both
extensive 2D and 3D seismic. The four Southern Licences, with a
newly agreed well obligation date of April 2017, run until 2Q 2018
when the licences may be renewed a further two times. The Company
is intent on delivering safe and environmentally responsible
exploration.
www.bpcplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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