The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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DaProphet - fair enough and I wish you good luck. We have all on this board - particularly we very long term holders - become weary, not from taking chances on the vagaries of the oil industry or the markets (that’s the nature of the beast) - but by suffering the endless twaddle put on by people who have clearly no real interest or knowledge. Thank goodness we do have a few excellent posters. All the best.
Yonny.. I did some research to an extent. I like to hear other peoples opinions also. Oil shares are always hit and miss very high risk... So you could do all the research in the world and its still unpredictable. This share was actually recommended to me from a few members of the banking industry.. Only invested 5k so not the end of the world.
Thanks, Yonny.
I've only been in BPC since 2017. I had heard that before, but had forgotten since.
If I am looking at a new share and ask for a brief summary of the history / state of play , it gives me a good basis to decide to do my own research, or look elsewhere. LTH's are usually a great source of information that takes many hours to accumulate. Treat others as you like to be treated is a good motto.
It's in all of out interests to attract and inform potential investors.
Hi Yonny, I will do my best. Likewise, if your antenna picks up anything regards the farm-in, then cryptic comments welcome.
NellyB - you forgot one element in your summary: the fact that we did have a Joint Venture Agreement (with Statoil) about ten years ago, but which they pulled out of because if all the other market pressures you mentioned. It just proves that the investment/geological case was as compelling then as it is now. I think you were very gracious to go to such lengths to explain to someone who had clearly done no research of his/her own.
PageofCups - please continue to keep your antenna tuned in: your intel is appreciated!
NellyB.
Thankyou for the excellent reply.
Very Informative
Here's to a successful farm in.
Might be a rainbow chaser though
DaProphet:
Long story short, Money, Politics, Deepwater Horizon, technological limitations, easier/cheaper drills elsewhere. Take your pick.
5 exploration wells have been drilled between the 1940's and 1980's, by major oil companies. ALL 5 had hydrocarbon shows, but none were commercial finds. Most of the desirable drill targets were not accessible by the technology at the time. By the 1990's the price of oil had plummeted to $20/barrel, the licenses were expensive to maintain and appetite for drilling dried up and moved off to more established oil fields in the Gulf of Mexico. Data rooms were closed by the oil majors and none were kept alive in the Bahamas.
Circa 2005 BPC was formed by ex oil major staff, with the idea to recommence the Bahamas oil dream.
Years and many 10's of millions of dollars were spend on researching the historic well data, exhaustive searches carried out to obtain historic drilling cores and samples, before commissioning new 2D and 3D seismics, in total costing around $130 million, including operating costs.
Preparations for drilling were underway and a farm in partner was being sought, then the 2010 Macondo incident happened, costing $65 billion to cap and clean up. This brought a rapid halt to the industry and new safety measures were devised, risk assessed and implemented.
Things were further delayed by new oil regulations (Petroleum Act) implemented in the Bahamas in 2016.
Between 2016 and 2020, a farm in/out partner was sought, but no deal was concluded. The decision to self-fund the 2020/2021 P1 drill was partly forced upon BPC, but also made much more accessible by lower rig rates, revising the drill costs down from around $100 million to around $30 million.
Feb 08, 2021 it was announced that BPC found oil, but not in commercial quantities. Farm in/out discussions have since recommenced.
Quick question if anybody knows the answer.. But why was only one well drilled and not a few over 12 years?
As they stated in the rns. "the presence of oil points to significant hydrocarbon potential remaining in various independent, untested play systems and structures within BPC's extensive acreage"