Bahamas Petroleum Announces Placing to Raise US$3.25 Million

Source: www.gulfoilandgas.com 6/14/2017, Location: South America

Bahamas Petroleum Company plc, the oil and gas exploration company with a significant prospective resource in licences in The Commonwealth of The Bahamas, has raised US$3.25 million (£2.6 million) before expenses through a firm and conditional placing of 260,000,000 new ordinary shares of 0.002p each (the "Placing Shares") at a price of 1 pence each (Placing Price) (the "Placing").

Highlights:

· Placing to raise gross proceeds of US$3.25 million (£2.6 million) through the issue of 260,000,000 Placing Shares at a price of 1p each.
· Placing comprises firm placing of £1.1 million comprising 110,000,000 new ordinary shares (the "Firm Placing") (Firm Placing Shares) and conditional placing of £1.5 million comprising of 150,000,000 new ordinary shares (the "Conditional Placing") (Conditional Placing Shares).
· Directors and certain Company executives have indicated an interest in participating in the Placing on the same terms, such participation to be advised once the Company has released its Financial Statements to 31 December 2016 (expected to be released on 15 June 2017) and is therefore out of the closed period for trading. This participation, once confirmed, will increase the size of the Conditional Placing.
· Proceeds of the placing will be used to fund the Company as it seeks to complete a farm-in or other financing sufficient to enable drilling of an exploration well on the Company's southern licences.
· BPC is confident of being able to conclude a farm-in:
· Oil market sentiment is improving, rig rates remain low and there is renewed interest in frontier exploration plays by oil industry majors - BPC believes the bottom of the cycle is passed;
· Bahamas regulatory framework now fully enacted, and BPC's licences renewed and extended such that licence tenure, work obligation and the overarching regulatory regime are clear;
· Project fundamentals remain unchanged: potentially multi-billion-barrel prospects, attractive fiscal terms, and proximity to world's largest oil market with infrastructure and services;
· Commercial negotiations ongoing with several parties; given improved industry sentiment others have re-entered the process.
· Approximately 70% of funds raised with be expended to ensure the Company's licences are maintained in good order pending and through the farm-in process, for example, on licence fees and direct in-country costs.
· Director and executive fee deferral arrangements, as previously announced, will continue to apply pending conclusion of a farm-in or other financing sufficient for the drilling of an initial exploration well on the Southern Licences, such that only a relatively small percentage of the funds raised (less than 8%) will be applied to Director / executive compensation.
· Extraordinary General Meeting to be held on or about 14 July 2017 to approve Conditional Placing (EGM). Notice for the EGM will be sent to shareholders in the near future.

Bill Schrader, Chairman of Bahamas Petroleum Company plc commented:

"BPC has assets that are potentially world class in scale. Over the past eight years the Company has substantially delineated and de-risked its assets, both technically and commercially. The next step is drilling. In order to do this, BPC needs to source funding, and our strategy remains to do so from an industry partner, via a farm-in. BPC has made pleasing progress on this task, is in active commercial negotiations with a number of parties, and the Board and I remain confident that a farm-in will ultimately be concluded as evidenced by our expressed interest in participating in the placing once we are permitted to do so by the closed period trading rules. I would like to thank all our existing and new shareholders for their continued support."


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