(Sharecast News) - Caribbean and Atlantic-focussed oil and gas company Bahamas Petroleum (BPC) updated the market on its high-impact exploration assets in the Bahamas and Uruguay on Wednesday, reporting that since it completed drilling on Perseverance #1, it had held discussions with industry counterparties over a potential farm-out of its licences in the Bahamas.
The AIM-traded firm said it was working to formalise an "entirely new" farm-out process, and as a result, it was intending to renew the four southern licences in the Bahamas into a third, three-year 'drill or drop' exploration period.
It said the final cost of drilling at Perseverance #1 was expected to be about $45m, compared to its pre-drill estimate of $35m, with additional costs of $10m said to be the result of heightened Covid-19 procedures of $3m, and side-tracking operations related to mechanical debris in the well of $7m.
In Uruguay, a formal contract execution for the Off-1 block was expected in the second quarter, with independent technical work undertaken by the national oil company ANCAP indicating a P50 estimated ultimate recovery volume of 1.34 billion barrels at the Lenteja prospect.
Bahamas said it had around $13m of cash on hand as at 1 March, including unconditionally committed convertible notes.
It expected additional capital requirements in 2021-2022 across the business of between $25m and $40m.
"The company expects to more than cover the difference from various potential funding sources," the board said in its statement.
At 1237 GMT, shares in Bahamas Petroleum were down 3.11% at 0.48p.
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