Bahamas Petroleum, the oil and gas exploration company with significant prospective resources in licences in The Commonwealth of The Bahamas, notes the latest movements in the Company’s share price and continued speculation pertaining to an imminent potential fundraising transaction by way of an equity placing to institutional investors.
The Company wishes to confirm that it has no immediate intentions of undertaking an equity placing to institutional investors.
As stated in various announcements in August and September 2019, the company has multiple funding options available to it to fund the exploration well intended to be drilled in H1 2020, which will provide shareholders with exploration exposure to risked resources between 0.4 and 1.2 billion barrels of oil, with a potential upside in the targeted structure that has been independently assessed at close to 4 billion barrels of oil.
The Company has consistently stated that it will work in a coordinated way toward selection of a financing package that the Board considers to be in the best interests of the Company and its shareholders. To this end, at the Company’s AGM on 17 September 2019 shareholders passed a number of special resolutions designed to provide the Board with the flexibility to enter into a range of possible funding arrangements to secure the funding for the initial exploration well, including the approval of a conditional convertible loan note agreement for the provision of £10.25m ($12.5m) in well finance.
In this context, in recent days the Company has met with a number of potential institutional investors as it considers its funding strategy. However, the Board considers that the current share price of the Company materially undervalues the project, and thus raising equity by way of a private placing to institutional investors at or below the current share price would not compare favourably with other options presently being considered by the Company, and would thus not represent the best value proposition for the Company’s shareholders.
The Company continues to actively evaluate a range of funding options, and active farm-in discussions continue. The Company remains confident it will implement a suitable financing package which will provide access to funding as and when required for drilling and drilling related activities, and which linked to the provision of a rig and access to integrated well services from a collaboration of major international companies will enable drilling to commence as intended in H1 2020.
The Company will make further announcements as appropriate in due course.
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