BPC.L Share News (BPC)

(Alliance News) - Bahamas Petroleum Co PLC on Tuesday said that drilling of Perseverance #1, in Trinidad & Tobago, fulfilled its core technical objectives and a post-well review is underway.

The oil and gas company focused on the Caribbean and Atlantic Margin additionally said it is brainstorming the best way to monetise its assets in the Bahamas, in particular, the renewal of an active farm-out process.

Bahamas Petroleum said near-term operational activity is now focused on the company's 2021 work programme in Trinidad & Tobago and Suriname, targeting exit production of around 2,500 barrels of oil per day.

The company's funding strategy is to focus on consolidating and strengthening the balance sheet, in support of directing maximum effort toward planned "value-adding" drilling activities in Trinidad and Tobago and Suriname during 2021.

The immediate anticipated cost of planned activities in Trinidad & Tobago and Suriname for the rest of the first half of this year is approximately USD4 million. The company currently has around USD15 million in cash

Bahamas Petroleum said it has reached agreement with the provider of its conditional fixed conversion price convertible note facility to revise and extend the facility to ensure it remains available through the course of 2021 drilling operations in Trinidad & Tobago and Suriname.

Chief Executive Simon Potter said: "The Stena ICEMAX has just left the drilling location and is off hire. However, the pace of operations has not ceased - the post-well review has begun, as the company charts its way forward in the Bahamas with a renewal of the farm-out process.

"Notwithstanding it is only a week since the completion of the Perseverance #1 well, Bahamas Petroleum has already moved to consolidate and strengthen its balance sheet, so as to ensure all value-add options to grow productions and cash generation in Trinidad and Tobago and Suriname are maintained. Over the coming weeks the company will fully close out the Perseverance #1 operation and set the final timetable for operations elsewhere across the portfolio."

Bahamas Petroleum shares were 12% higher at 0.75 pence each in London on Tuesday morning.

By Greg Roxburgh; gregroxburgh@alliancenews.com

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