Bahamas Petroleum Co (LON:BPC) Proposed open offer and progress towards drilling

Bahamas Petroleum Company, the oil and gas exploration company with significant prospective resources in licences in The Commonwealth of The Bahamas, is pleased to announce a proposed open offer to shareholders, and to advise of continued progress toward drilling its first exploration well in The Bahamas in 2020.


· Proposed £7 million (c. US$8.5 million) open offer at a price of 2 pence per share to enable all existing shareholders to participate in the Company’s next fundraising; Circular to launch the open offer to be posted in the week commencing 14 October 2019

· Entry into a subscription agreement for the previously announced £10.25 million (c. US$12.5 million) conditional convertible notes; farm-out discussions continue

· Drilling schedule developed to target an initial exploration well in H1 2020

· Company has sent notice to Seadrill nominating rig delivery date (and expected well spud) for late Q1 2020 in accordance with terms of the rig framework agreement; parties now progressing to long-form legal documentation for rig contract

· Continued progress on environmental permitting

Simon Potter, Chief Executive Officer of Bahamas Petroleum Company, said:

“I am pleased to advise shareholders of continued progress toward drilling an initial exploration well in The Bahamas during 2020. A farm-out remains our preferred funding option, and constructive discussions continue. At the same time, we are moving forward with additional components of a balanced funding strategy, so that we can deliver on drilling regardless of the outcome of these discussions.

This includes giving our existing shareholders the first opportunity to participate in our next fundraising via an open offer. We have also signed the subscription agreement for our previously announced convertible note facility, and we have received a number of other funding proposals.

Given the progress made in relation to our funding strategy, we have notified Seadrill of our desire to receive a rig in late Q1 2020, and we are now working collaboratively with Seadrill on both finalising the long-form rig contract and preparing for drilling.”

Progress on Funding Link


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