BPC.L Share News (BPC)

(Sharecast News) - Caribbean and Atlantic margin-focussed oil and gas company Bahamas Petroleum has been notified by Stena Drilling that the 'Stena IceMAX' was the intended drill rig for the upcoming 'Perseverance 1' drilling campaign.

The AIM-traded firm said it also indicated the start of the contracted window, which starts on 15 December, as the approximate time for the arrival of the drill ship in the field, with an expected well spud date some three to four days later, once the rig is on station.

It said the Perseverance 1 well was targeting recoverable P50 oil resources of 0.77 billion barrels, with an upside of 1.44 billion barrels.

The board described the Stena IceMAX as "one of the most advanced" drillships in existence, designed specifically for safe and efficient operations in a wide variety of drilling conditions.

It said the drillship facilities include a managed pressure drilling system integrated into the ship, to maximise the safety integrity of operations and optimise the pace of drilling through anticipated reservoir formations.

Given confirmation of the anticipated arrival time for the IceMAX in the field, project implementation, which had been previously defined and was ongoing in March prior to the Covid-19-related postponement of work, would now be reactivated to align with a spud in around three months.

Bahamas Petroleum said its logistics plans had also been reactivated, with previously-delivered critical path and long-lead items inspected pending mobilisation from warehouses.

Covid-19 impact mitigation plans were also being implemented, with final revisions to cost estimates made.

"In March 2020, the company was within weeks of commencing the drilling of the Perseverance 1 well when compelled to defer operations due to the anticipated impacts of the Covid-19 pandemic," said chief executive officer Simon Potter.

"As might be expected when such an advanced well plan is halted so close to final implementation, major elements were already in train or sufficiently well established such that reactivation is a relatively straightforward matter.

"With the clarity of the anticipated delivery date of the Stena IceMAX into the field this work can now be reactivated against a detailed timetable and progressed."

At 1009 BST, shares in Bahamas Petroleum Company were up 23.45% at 2.9p.