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The Bahamas renewal of the licenses are very important to the company, they've spent 150m there so they're not going to give up on it.
Dàta report should be available at anytime now as Eytan said in the proactive London shareholders questions interview that it'll be 6-8 weeks, we're now on week 7.
A farm-in is highly possible as there's a possible Jurassic petroleum system with many structures that could bring high interest from oil majors.
There's 80km of acreage of licences in the Bahamas and we've only stuck one well in it.
Still all to play for there.
A core focus of this review will be an assessment of the technical and value potential established by the drilling of Perseverance #1, and the definition of further activities that will maximise the Company's ability to monetise and thus create value from its extensive acreage holding in The Bahamas.
The Company considers the results from Perseverance #1 - notably the confirmation of migrated oil within the Aptian reservoirs - will significantly reduce technical risk for any future/further exploration in this new frontier province. In particular, BPC considers that the results from Perseverance #1 may provide a strong technical basis for renewed farm-in discussions, with a view to future drilling at other target locations within BPC's licence areas.
In parallel the Board, with the assistance of the Company's advisers and brokers, will review the Company's broader portfolio of operations and opportunities, to ensure its plans deliver maximum value for the foreseeable future. This review will focus on ensuring progress of the planned 2021 work program in both Trinidad and Suriname, and associated production growth, as well as the potential to deliver prospect/lead maturation in Uruguay from reprocessed seismic . The Company's 2021 work programme in Trinidad and Tobago and Suriname is targeting exit production of c.2,500 bopd.
It doesn't matter, #P1 was a duster and is dead in the water. The BOD is continuing the hoax so investors feel secure/dream something is there.
Remember his words" dead cert", what a lie.
What rot! If that had been the case, this would be significant information that would have to be notified yo the market. #projectfear
CEG has already applied for the renewal as the deadline has passed, whatever their further analysis of P1.
I went looking for clarity on the renewal terms and found: https://d1ssu070pg2v9i.cloudfront.net/pex/bahamas/2008/09/01180256/2008-09-02-bpc_-_admission_document_2008.pdf page 100
“If the licensee has complied with the provisions of the Petroleum Act, the Petroleum Regulations and the terms of the licence the Governor General will renew the licence for a further period not exceeding three years for the whole of the licence area. Thereafter he may, in his discretion, renew the licence for two successive periods, each not exceeding three years, on application made by the licensee not less than three months before the date of expiry of the licence. The terms and conditions of the renewal shall be agreed at the time of such renewal.”
So the terms are agreed at the time of the renewal, not preset. But worse, it seems very clear here that the first renewal (in 2015) was automatic but the current second renewal is at the government’s discretion.
CEG will present their findings to the Bahamas Government on the P#1 well result and on whether there are likely commercial volumes of oil within the licences and if so CEG will apply for the next 3 years of exploration as is their right, which the Bahamas Government are duty bound to grant. Of course, licence fees are agreed in advance for each 3 year period. The Bahamas Government have no right to the survey data. This is commercial information that belongs to CEG. They may purchase the data if they wish.
Bohemia
From memory the government had officials on the rig during P1. Black and Vietch were assigned to the task. I’m assuming you meant during P1.
Cheers
Patoir
The government can and will have requested all the information from CEG. Otherwise frankly they have no idea if CEG performed all its well obligations and, since they have the right in their legislation, why wouldn’t they collect it.
Neither of us know what confidentiality commitments the government would have given CEG, but CEG had no ability to insist on any.
It is quite normal for a new licence grant to include receipt of all the historic data: well data and seismic. For example Chariot getting Lixus/Anchois and Jersey getting Buchan.
Surely the license renewal costs would have been agreed under the original exploration license terms + /- inflation? If not, the Bahamas government could simply shaft any exploration company, after they have expended tens of millions of dollars on the seismic surveys and interpretations, by setting any price they wanted to.
Government don't own anything apart from the granting of licences and the royalties that come from any oil company that produces oil.
Intellectual property belongs to CEG.
The government has all that data.
CEG own all the 3D data for the licences. It cost $40m to acquire. Not to mention all the data for the previous 5 wells drilled and of course the latest Perseverance well data. You can't drill without this data as you won't know where to put the drill bit. Anyone else would have to acquire CEG's survey data. It would cost a lot of money to do that. Better off doing a farm-in with CEG at a fraction of the cost.
And no optimistic exploer can shaft CEG pivately. BPC /CEG are impregnable in law under the contract.
Yea thats basically what POC said.
There’s no bidding frenzy because there’s nothing to bid on. Only CEG can renew the current licences. Either they agree terms to do that or the licences expire.
If another company wants in, either they approach CEG or they wait to see if the licences expire and then apply for fresh licences for the acreage they want. If they prefer the latter because there’s no need to carry CEG, they might try to have the government squeeze CEG out, but of course they won’t do it publicly.
There is normally a bidding frenzy when acreages are up for grabs. Being as that hasn't happened, what POC has said sounds more accurate to me.
Anyways, I don't wish to reignite the Farm Out debate.
Bo this was my assumption but as I said, I have little knowledge on the subject.
But the government set the terms of the renewal. If they want rid of CEG, why can't they price CEG out of the renewal: demand $4m in rental and $4m in escrowed funds for seismic work in the first year of the new term.
If CEG don't/cannot renew, there's then nothing to stop someone else applying for some of the acreage. Except whether politically the government will grant fresh licences.
Cheers understood.
CEG have four 3 year periods with automatic renewal at the end of each 3 years. This is the renewal for the third 3 year period, (9years), out of a total of 12 years.
Interesting. Until when?
I thought all those licences expired in 2021.
Nope. Bahamas Government are not issuing new licences. All licences for exploration and production in the Bahamas belong to CEG. They have the acreage sewn up.
So no other company can bid on any acreage in Bahamian waters, even the ones relinquished?
No other company can bid on the Bahamas licences. CEG have a 12 year monopoly on the licences in the Bahamas.
Drilling completion news expected this week. Even if its stellar news, testing & flow results will come mid July so a new SP floor may have to wait till then.
In respect to the Bahamas; I think if it had increased potential, other companies would have bid on licences to try and snatch a deal in the renewal process. But thats just my own interpretation, I have no knowledge of the licence bidding process or if others have indeed bid for any Bahamian acreage.
Great to see the price of oil at this level, not for petrol costs thought :/
I presumed the recent capital restructuring was in part to settle outstanding financial commitments & was expecting news on this. I am surprised how long this arbitration is taking.