BPC.L Share News (BPC)

(Sharecast News) - Bahamas Petroleum Company updated the market on the current status of two contract arrangements in Trinidad & Tobago on Friday, with the first being the extension of the incremental production service contract at Goudron, pending a new 10-year enhanced production sharing contract.
The AIM-traded firm said the term of the current Goudron incremental production service contract with Heritage Petroleum Company had been extended from 30 September to 31 December.

It said the extension was an interim measure, to allow time for Heritage to obtain consents from the Ministry of Energy and Energy Industries for the implementation of the new 10-year enhanced production sharing contract agreement.

"The EPSC is already in an agreed form and has been submitted to the Ministry by Heritage, but the process for securing the final ministerial approvals and consent to signature has been delayed as a result of disruptions occasioned by the Covid-19 pandemic and the conduct of a national election in Trinidad and Tobago," the board explained in its statement.

"Bahamas Petroleum Company management has been assured, during initial interactions with both Heritage and the Ministry post completion of the merger with Columbus Energy Resources Plc, that the signing of the EPSC agreement will occur in the near future, at which time the company will advise the market accordingly.

"BPC has a 100% interest in the Goudron field via its current IPSC with Heritage, and this interest will be reflected in the EPSC."

At Inniss-Trinity, meanwhile, the company reported the expiry of a right to purchase.

It explained that, under the well participation agreement entered into in November 2017 with Predator Oil & Gas, by 30 September 2020 Predator was required to enter into a share purchase agreement under which it would acquire the corporate entity that holds the Inniss-Trinity asset, for $4.25m.

The company said that it had not entered into such an agreement with Predator by the agreed deadline, and as a result, that aspect of the well participation agreement has lapsed.

"The Inniss-Trinity field currently produces approximately 150 barrels of oil per day, before any incremental production arising from increased operational efficiency and the application of enhanced oil recovery techniques," the board said.

"Bahamas Petroleum Company retains a 100% interest in the Inniss-Trinity field and will continue to review the application of a range of enhanced oil recovery techniques, and seek to undertake further reservoir enhancement work based on technical merit and as commercially justified."

At 1244 BST, shares in Bahamas Petroleum Company were down 3.21% at 2.15p.