Bahamas Petroleum Co (BPC.L) Update on Goudron and Inniss-Trinity Contract

Trinidad & Tobago: Update on Goudron and Inniss-Trinity Contract Arrangements

BPC, the Caribbean and Atlantic margin focused oil and gas company, with exploration, production, appraisal and development assets across the region, advises of the current status of two contract arrangements in Trinidad & Tobago, as follows:

· Goudron – Extension of IPSC pending new EPSC

The term of the current Goudron Incremental Production Service Contract (“IPSC”) with Heritage Petroleum Company Limited (“Heritage”) has been extended from 30 September 2020 until 31 December 2020. This extension of term is an interim measure to allow time for Heritage to obtain requisite consents from the Ministry of Energy and Energy Industries (“Ministry”) for the implementation of a new 10-year Enhanced Production Sharing Contract (“EPSC”) agreement.

The EPSC is already in an agreed form and has been submitted to the Ministry by Heritage, but the process for securing the final ministerial approvals and consent to signature has been delayed as a result of disruptions occasioned by the Covid-19 pandemic and the conduct of a national election in Trinidad and Tobago. BPC management has been assured, during initial interactions with both Heritage and the Ministry post completion of the merger with Columbus Energy Resources Plc, that the signing of the EPSC agreement will occur in the near future, at which time the Company will advise the market accordingly. BPC has a 100% interest in the Goudron field via its current IPSC with Heritage, and this interest will be reflected in the EPSC.

· Inniss-Trinity – Expiry of right to purchase

In relation to BPC’s Inniss-Trinity asset, in accordance with the Well Participation Agreement (“WPA”) entered into in November 2017 with Predator Oil & Gas Holding Limited (“Predator”) (and as subsequently varied by mutual agreement), by 30 September 2020 Predator was required to enter into a share purchase agreement (“SPA”) under which Predator would acquire the corporate entity that holds 100% of the Inniss-Trinity asset, for a consideration of US$4.25 million. The Company advises that BPC and Predator have not entered into such an SPA by the agreed deadline, and accordingly, this aspect of the WPA has lapsed.

The Inniss-Trinity field currently produces approximately 150 bopd, before any incremental production arising from increased operational efficiency and / or the application of enhanced oil recovery techniques. BPC retains a 100% interest in the Inniss-Trinity field and will continue to review the application of a range of enhanced oil recovery techniques, and seek to undertake further reservoir enhancement work based on technical merit and as commercially justified.

Notes to editors

BPC is a Caribbean and Atlantic margin focused oil and gas company, with a range of exploration, appraisal, development and production assets and licences, located offshore in the waters of The Bahamas and Uruguay, and onshore in Trinidad and Tobago, and Suriname. BPC is currently on-track for drilling an initial exploration well in The Bahamas, Perseverance #1, in late 2020 / early 2021, with the well targeting recoverable P50 prospective oil resources of 0.77 billion barrels, with an upside of 1.44 billion barrels. In Trinidad and Tobago, BPC has five producing fields, two appraisal / development projects and a prospective exploration portfolio in the South West Peninsula. BPC’s exploration licence in Uruguay is highly prospective, with a potential resource of 1 billion barrels of oil equivalent. In Suriname, BPC has an onshore appraisal / development project.

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