Bahamas Petroleum Company, the oil and gas exploration company with significant prospective resources in licences in The Commonwealth of The Bahamas provides the following update in relation to its business and ongoing farm-out process:
• In mid-July 2017, the Company completed the raising of US$3.5 million (£2.8 million) before expenses through a firm and conditional placing of 280,000,000 new ordinary shares of 0.002p each at a price of 1 pence each (the "Placing"). The purpose of the Placing was to ensure the Company had sufficient funds available as it pursues a farm-in, or other financing, to enable drilling of an exploration well on the Company's southern licences in The Bahamas.
• Since completion of the capital raising, the Company has actively continued its efforts to secure a farm-in or other financing. Progress has been made, despite the European summer holidays in August and the considerable disruptions to regional business activity caused by Hurricanes Harvey (which largely affected Houston) and Irma (affecting most of the Caribbean). During this time, the Company has:
o entered into four new Non-Disclosure & Confidentiality Agreements (NDA's) with qualified prospective farm-in and financing partners;
o executed or proposed two NDA's to allow new and extended data sharing across the region to further add to the already extensive BPC database;
o provided information to, and hosted or scheduled due diligence visits from, five new prospective farm-in and financing partners, and anticipates several additional visits in the coming weeks and months as more normal business activities resume in the region;
o maintained ongoing contact with several prospective farm-in / financing partners that had already undertaken technical due diligence during the time of the capital raising. The Company hopes to progress one or more of these parties to the next stage of the process (non-binding term sheets) in the coming months;
o engaged external technical experts to conduct an overall independent audit of BPC's own assessment of the total petroleum system and targeted drill prospects utilising the full range of BPC's exhaustive database. This external technical evaluation will integrate global analogues from Mexico and the Middle East to validate the Company's estimated recoverable volumes, both risked and unrisked, as well as the geological chance of success;
o expanded ongoing dialogue with certain industry intermediaries, including specialist investment banks, so as to broaden the universe of potential farm-in and financing partners; and
o As a result of a landslide win in The Bahamas general election of May 2017, a new government took office; since that time, the Company has been proactively meeting with representatives of the new administration to ensure renewed appreciation for the Company's activities and the significant potential economic and social benefits the Company's project offers to The Bahamas. To-date, the Company has met with a number of new Ministers and Government officials, and will continue this programme of active engagement with Government.
• the Board and executive continue to forego fees and salary in lieu of Company stock, under the previously reported terms, until funding to execute the well obligation has been secured.
Simon Potter, Chief Executive Officer of Bahamas Petroleum Company, said:
"Securing a partnership and the funding necessary to enable drilling to commence remains the Company's number one priority. We are actively pursuing all avenues for the funding of the well, and intend to provide regular updates as to our activities in this regard to the extent permitted by commercial and confidentiality considerations. The board and I strongly believe in the Company's resources and are fully committed to delivering the initial exploration well as a first step towards unlocking the potential for oil and gas exploration in The Bahamas."