LONDON (Alliance News) - Bahamas Petroleum Co PLC Thursday said it wants to drill on its licenses "as soon as possible" but the company is waiting to secure a strategic partner to bring down the cost of the first offshore exploration well.
The company, which operates in the southern waters of the Bahamas, reported a total loss of USD2.3 million in the first half of 2015, slightly narrower than the USD2.4 million loss a year earlier. The company does not generate any revenue.
Bahamas is currently cutting costs and restricting expenditure, and had cash of USD7.8 million at the end of June with no debt. The company said it expects to cut costs further in the second half.
"In conclusion, the first half of 2015 has been one of modest but pleasing progress for the company. In a commercial and regulatory sense, we now have clarity on the extended tenure, timings, terms and area of our licences," said Chief Executive Simon Potter.
"Combined with the recently demonstrated commitment of the Bahamian government to our industry, and the legislative clarity provided by the savings provisions of the new Petroleum Act with regards to our existing licences, we believe there is now the greater level of certainty needed to attract high quality industry partners and this is being acted on determinedly by the company," he added.
The company currently has four offshore licences in its name-sake country with a further three license applications pending. All of those licences are connected along the maritime border with Cuba.
Bahamas Petroleum has an obligation to drill at least one exploration well across its licenses by April 2017, but the company said it wants to drill "as soon as possible", but it is seeking a funding partner to bring the cost of the first well down from the expected cost of around USD50 to USD60 million.
"We are encouraged that these developments have reinvigorated the company's programme to attract a strategic and funding partner and are confident that we have the right strategy, team and fundamentals in place to deliver significant value to our shareholders," said Potter.
Bahamas Petroleum shares were up 4.8% to 2.44 pence per share on Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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