LONDON (Alliance News) - Shares in Bahamas Petroleum Co PLC more than doubled on Thursday after it signed a confidentiality & exclusivity contract with an unnamed international oil company.
The stock was trading at 2.20 pence per share in morning trade.
The agreement stipulates the companies to undertake a detailed technical evaluation of Bahamas Petroleum's licences in the commonwealth of the Bahamas and develop a commercial framework for a potential transaction.
Bahamas Petroleum said that the contract is at least three months long and it will receive a non-refundable cash payment of USD250,000 each month. It noted that the agreement can be extended up to a maximum of a further three months for an additional GBP250,000 per month.
The company did not name the new client but said it suspended discussions and negotiations with other potential partners for the time being.
"The decision to enter into an exclusivity agreement with a reputable international industry operator is a significant step in our ongoing process to secure a partner for our highly prospective assets in the Bahamas," said Chief Executive Simon Potter.
"We look forward to working closely with the counterparty over the coming months, and we will update the market of any material developments as and when appropriate," Potter added.