(Alliance News) - Bahamas Petroleum Co PLC on Friday said it has agreed with the government of The Bahamas on the amount of licence fees payable for the period to 2018 and the two years to December 2020.
The exploration and production company, however, noted that final documentation - and thereafter payment - is still pending confirmation from the Bahamian Treasury of receipt of past payments made by the company to the ministry.
This confirmation process has been somewhat delayed, Bahamas Petroleum said, owing to the state of emergency declared and ongoing business disruption caused by the national response to the Covid-19 outbreak in the Bahamas.
The company said it expects that an appropriate side-letter agreement can be finalised in due course, and the outstanding amount paid.
Elsewhere, Bahamas Petroleum said it has received a conversion notice in respect of GBP925,000.
This is after Bahamas Petroleum in February drew down GBP2.7 million of its GBP8 million convertible loan note facility with a substantial Bahamian based institutional family-office investor. In March, the company announced the expansion of this facility by a further GBP8 million, thus totalling GBP16 million, and, at the same time, drew down a further GBP2 million.
The investor has previously converted, in aggregate, GBP2.2 million of the amounts drawn down by the company into new hares.
The GBP925,000 announced on Friday will be converted at a price of 1.17 pence a share into 79.1 million shares. Thereafter, GBP1.5 million of convertible notes will remain on issue, and remain subject to conversion or redemption in accordance with their terms and conditions.
Following the admission, Bahamas Petroleum said it will have 2.32 billion shares overall.
The stock was trading 1.9% higher in London on Friday at 1.35p a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.