Bahamas Petroleum Company plc, the oil and gas exploration company with significant prospective resources in licences in The Commonwealth of The Bahamas is pleased to announce its final results for the year ended 31 December 2017.
· Significantly improved oil price has created a more buoyant commercial environment for exploration, increasing investor confidence in the sector
· After discussion with the Government of the Bahamas, the Company was granted a licence extension in March 2017, extending the term of the Company's licences, and the time in which to perform the obligations and requirements thereof, for a further 12 months through to June 2019
· New Government elected in The Bahamas in May 2017 with a clear mandate to address the fiscal deficit in the country. The Government has shown continued support for the development of an oil and gas industry in The Bahamas, including the approval in February 2018 of a new $5.5 billion oil and gas refinery on the island of Grand Bahamas
· Successfully raised £2.8 million before expenses in June and July 2017, through the placement of 280 million new shares, bolstering the Company's negotiating position in farm-out discussions
· External technical audit completed in December 2017 by Moyes & Co, indicated aggregate mean volumetrics of 8.3 billion barrels of oil, with a further upside of up to 28 billion barrels STOIIP and a probability of success ("PoS") in the 25-35% range
· Operating loss decreased 16% to $3.25 million (vs $3.88 million in 2016), with the entire Board now deferring 90% of their remuneration to be repaid only in the event of a successful farm-out or well-financing being completed
Post Year End Highlights:
· Lodged an application for Environmental Authorisation with the Government of The Bahamas, an important milestone for the Company and representing the first step in commencing offshore field activity
· Signed a Confidentiality and Exclusivity Agreement with a major international oil company in May 2018, for an initial period of three months, and extendable by the counterparty for a maximum of a further three months. During the term of the Agreement, BPC and the major international oil company will work together exclusively to conclude a detailed technical evaluation and at the same time seek to develop a commercial framework for a potential transaction. BPC will receive a non-refundable cash payment of US$250,000 per month for the initial three-month period of exclusivity, with a further US$250,000 per month for each additional month of exclusivity thereafter
· Appointed Macquarie Capital Markets Canada Ltd as an advisor to assist the Company with various corporate initiatives, providing a full suite of global corporate solutions with a leading presence in the international energy sector
· Raised £1.1 million before expenses by way of a subscription at a price of 2.5p per Subscription Share, representing a 250% increase on the price achieved in the raising a year earlier, allowing the Company to further bolster its cash position whilst minimising dilution
Simon Potter, Chief Executive Officer of Bahamas Petroleum Company, said:
"The higher oil price environment, the sheer scale of our prospectivity and the need for large oil companies to replace reserves after five years of under investment in this area has resulted in a marked upturn in the exploration sector, and added energy and urgency to our farm-out process, which has gained considerable momentum over the year. As previously advised, we are currently in an exclusivity period with a major international oil company and I am happy to report that discussions are progressing constructively."
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