Interim Results for the six months ended 30 June 2018
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 interim results for the six months ended 30 June 2018.
· Lodged application for Environmental Authorisation with the Government of The Bahamas, representing the necessary first step in commencing offshore field activity.
· Received non-refundable cash payments totalling $1 million in respect of a 4-month period of exclusivity (May - August 2018) with a major international oil company.
· Raised approximately $1.6 million through a share placement and the exercise of warrants, further bolstering the Company's cash position.
· Appointed Macquarie Capital Markets Canada Ltd as an advisor to assist the Company with various well funding initiatives, providing a full suite of global corporate and asset-based financing solutions.
· Cash at end of the period of approximately $3.1 million, an increase on both the previous 6-month period (approximately $1.8 million H2 2017) and the prior year comparative period (approximately $1.4 million H1 2017) owing to capital raisings and exclusivity fee payments received.
· Operating loss and total loss reduced approximately 65% and 95% respectively on comparative 6-month period, impacted by write-offs agreed by CEO to remuneration package.
· Significant cash saving initiatives continued during the period, including the Board agreeing to increase fee deferrals from 50% to 90%; employee benefit expense reduced 120% on comparative 6-month period largely as a result of CEO remuneration changes.
· Agreed substantial changes to the CEO's remuneration resulting in a reduction in salary, termination of ongoing deferral of salary into conditional share entitlements and the writing off of all conditional cash and pension entitlements accrued to 1 July 2018.
· Recommenced engagement with a variety of new and existing parties as potential well funding partners.
Simon Potter, Chief Executive Officer of Bahamas Petroleum Company, said:
"The first six-months of 2018 have been a busy period for the Company. While the exclusivity agreement entered into with the major oil company was not extended beyond 31 August 2018, the Company is encouraged by their interest and willingness to pay a substantial amount to enter exclusive discussions. The Company views this as validation of the technical merits and strong potential of our high impact project.
"The Board remains entirely focussed on seeing an initial exploration well completed. With the support of our advisers at Macquarie, the sustained recovery in the global oil price providing further confidence to industry operators and investors alike, and the recent bolstering of the Company cash position, we are working hard to secure the investment needed to move this exciting project forward.
"We would like to thank all our investors and staff for their continued support and perseverance and look forward to reporting on further developments to you in the near term."