BPC, the Caribbean and Atlantic margin focused oil and gas company, with production, appraisal, development and exploration assets across the region, is pleased to provide an update on its operations across its portfolio, as at the start of 2021.
- Achieved production target of 500 bopd by end of 2020; end 2021 target remains at 2,500 bopd
- On track to deliver extensive 2021 drilling campaigns; commencing with Saffron #2 in Trinidad and Tobago, and Weg Naar Zee extended well test in Suriname
- Delivered certified 2P reserves and 3C resources targets; seismic reprocessing and drilling to drive further restatement in Q2 2021
- 100% owned Perseverance #1 exploration well, targeting recoverable P50 prospective oil resources of 0.77 billion barrels and with an upside of 1.44 billion barrels, commenced on 20 December 2020 in The Bahamas, with drilling ongoing
- Election to draw on first tranche of funding (£3m) under the Company's convertible note funding facility now made; variation to the Funding Option Agreement entered into with the Investor in respect of the potential exercise of both the Put and Call
Simon Potter, CEO of BPC, said:
"BPC's stated strategy has been to complement high-impact exploration activities with producing, and thus cash generative, assets. In this context, during 2020 we brought together an exciting portfolio of assets in multiple locations and laid out a strategy with clear operational objectives in support of delivering a significant financial goal by the end of 2021. I am pleased to report to shareholders that on leaving 2020, the initial key operational objectives were met and consequently we remain on track across the portfolio to deliver our goals.
Pleasingly, notwithstanding the obvious constraints of operating across all of our asset base during a global pandemic, we managed to increase production in Trinidad and Tobago to our targeted 500 bopd level by the end of 2020. The next challenge will be to sustain that production and grow it further so as to achieve our 2,500 bopd production target by the end of 2021.
As well as maintaining progress across the base production assets, delivering our goals will require timely execution of our 2021 drilling program in both Trinidad and Tobago and Suriname, and we are making great strides to be ready to kick-off those activities in the coming months.
Equally, in leading such a turnaround of activities in Trinidad and Tobago, we were not deflected from our primary goal of delivering on the long-awaited exploration well in The Bahamas. Perseverance #1 commenced drilling in late December 2020, and we look forward to being able to advise shareholders of the outcome at completion of the 45-60 day anticipated drilling and evaluation period."
In August 2020, BPC completed a merger with Columbus Energy Resources Plc, pursuant to which BPC added a portfolio of production, development, appraisal and exploration assets in Trinidad and Tobago and Suriname to its existing assets in The Bahamas and Uruguay.
In respect of this broadened portfolio business, during 2020 BPC developed and outlined a strategy designed to achieve material, profitable growth in production, as well as rapidly progress appraisal and exploration activities across the portfolio, in support of clear financial targets.
Those financial targets are to deliver, by the end of 2021:
(i) a revenue run-rate of >$35 million per annum, and
(ii) an operating cashflow run-rate of >$15 million per annum,
all based upon achieving, or exceeding, a production target of 2,500 bopd by the end of 2021, with an extraction cost of <$20 per barrel (and assuming current oil prices).
During the course of 2020, BPC set out a number of clear operational objectives, the achievement of which will underpin delivery of this strategy and our financial goals, and on which the Company is now pleased to provide an "end of year 2020" report, as set out further below.