Member Info for NellyB

GR appointed New York-based firm EAS to help facilitate funding the DFS.

From 22nd Feb RNS: "With ever increasing EV demand the need for development of lithium projects becomes more essential. We're looking forward to working with the Company regarding its ongoing finance, particularly regarding the Company's Zulu lithium project, as well as lifting its profile in North America."

I'm convinced the lack of JV partner applies only to the funding of the DFS, not the project as a whole, moving into mining.

Nowhere does it say there won't be a JV for the mining phase, in future. Today's RNS just outlines that it is in the company's interest to fund the DFS with a loan, rather than give away part of the asset on the cheap.

How is this not good news?

So now the share price is below what it was before the EPO was officially RNS'd. Madness.

So my take on today's RNS is that rather than give away a stake in the asset on the cheap, to pay for the DFS, GR is looking for / has been offered a straight loan for the DFS funding. (maybe from his buddy Steve Dattels?)

A JV could still happen down the line, when the DFS is complete.

Is there any way the DFS could be fast-tracked, to realize the value sooner?

"Subsequent to the awarding of the EPO for Zulu, Premier has received multiple approaches both proposing direct funding for the Zulu DFS as well as investment linked to product take off and future mine development. Premier is evaluating these and now expects to be able to update our shareholders on the way forward by the end of this month."

So, in exchange for what? Shares, or stake in asset? stake in asset seem to be contrary to what is said here:

"And whereas the Board was of the view historically that on grant of the EPO, development of Zulu would almost certainly follow a path of ultimate joint venture development with a surrender of a significant direct equity stake in Zulu, Premier's present market value suggests that retention of 100% of Zulu is now potentially a better option."

Shouldvesold - the "conservative 1000-1500 bpd by year end" that you mentioned excludes Suriname. Read further down and you'll see the projected figure of 2500 bpd for the whole portfolio still stands:

"Business Development Opportunities

The Company's goal is to build profitable production and cashflow through 2021 and beyond, with a stated target of exiting 2021 with Trinidad and Tobago production, when consolidated with projected production from Suriname, in excess of 2,500 bopd."

Harry, if you don't like the way the BOD relay info to it's shareholders, I suggest you don't invest. We all know what you're like when they don't do what you expect them to. Krapp is almost more bearable, but at least his/her shareholding position is crystal clear.

Looking at the recent trades showing on LSE, it's apparent that many people do not understand decimal places. Who would buy £1 , £3 worth of shares?!

My understanding is that the Bahamas licenses are in the region of $1 million a year to maintain. Please correct me if I'm wrong.

With ongoing JV discussions with multiple interested parties, how stupid would it be to let the licenses lapse, when they could still hold multiple $100's of millions in value?

BPC are the only company in the world to hold a dataset for the Bahamas, which would take years for another company to acquire and process, at a cost in excess of $200 million. If findings from P1 are enough to secure a JV, BPC could be looking at back costs of over $100 million, or roughly 4 x the current SP, plus a percentage of any future production.

There is still a lot to play for in the Bahamas. Nothing is guaranteed, but the SP does not reflect the opportunity.

The Bahamas licenses lapse at the end of June, but the renewal application/s have to been submitted by the end of March. With ongoing JV talks in the background, it would be unthinkable for BPC to simply let the licences expire.

In one of the old Columbus presentation videos, Leo Koots explained the technical difficulties of drilling Saffron 1. They encountered multiple issues getting to target depth and had to use extremely heavy drilling mud (17lbs / gallon if I remember correctly) to overcome the intense pressures at depth. Saffron 1 was seen to visibly gush oil when drilled. Basically every obstacle that they planned for was encountered and was overcome.

They have already stated that the drill schedule is subject to the permitting process and possible covid delays. If it does get put back beyond Q1, it will be for something outside of their control.

Jono, Potter got the Cerp assets for approximately todays market cap. He also fulfilled his promise to drill P1 (although not to full TD). P1 was rated at 35% COS. I see no reason for him to go.

I believe the remainder of the year will be transformational for ex Cerp assets and for BPC as a whole.

PDUK, until we have further update on the technical analysis of P1 finding, no-one here knows how much oil was or was not found. It might not have been enough to fill a car. It might have been 100 million barrels. The market has not been told.
You have no right to misrepresent the findings as zero oil found.

Technically, this well was always pre-determined to be a 'duster' on the basis it would never be used for extraction, therefore, never produce a single barrel. That didn't stop people from buying the share, on the expectation that further wells would be drilled, to extract a commercial find.

Do you really think it is the norm, for a drilling company to rock up, drill one exploration well and say "right boys, we've hit. Let's spend $5 billion on setting up extraction infrastructure at this exact location"?

As for this being a free forum, what difference does that make to sentiment? I can get free news from BBC radio. Does that mean the news is not true, because I didn't pay for it?

Any forum can influence the sentiment of anything, if enough people say the same thing, enough times, to enough people. If you do not understand that, I think you need to go back to school.

Perhaps you should re-read the Feb 08 RNS - P1 was NOT a duster. Duster = no hydrocarbons found.
P1 found a work hydrocarbon system.

You're either ignorant, or deliberately deramping for a cheap entry.

...considerably over £5 million.

Lets say POO = $50, Cost of extraction $30 (i'm being generous) = $20 net profit per barrel x 2500 x 365 = $18.25 million / year.

I'm sure extraction costs are less than $30 / barrel and POO will be more than $50 / barrel by year end.

Thanks, Yonny.

I've only been in BPC since 2017. I had heard that before, but had forgotten since.

If I am looking at a new share and ask for a brief summary of the history / state of play , it gives me a good basis to decide to do my own research, or look elsewhere. LTH's are usually a great source of information that takes many hours to accumulate. Treat others as you like to be treated is a good motto.

It's in all of out interests to attract and inform potential investors.

DaProphet:

Long story short, Money, Politics, Deepwater Horizon, technological limitations, easier/cheaper drills elsewhere. Take your pick.

5 exploration wells have been drilled between the 1940's and 1980's, by major oil companies. ALL 5 had hydrocarbon shows, but none were commercial finds. Most of the desirable drill targets were not accessible by the technology at the time. By the 1990's the price of oil had plummeted to $20/barrel, the licenses were expensive to maintain and appetite for drilling dried up and moved off to more established oil fields in the Gulf of Mexico. Data rooms were closed by the oil majors and none were kept alive in the Bahamas.

Circa 2005 BPC was formed by ex oil major staff, with the idea to recommence the Bahamas oil dream.

Years and many 10's of millions of dollars were spend on researching the historic well data, exhaustive searches carried out to obtain historic drilling cores and samples, before commissioning new 2D and 3D seismics, in total costing around $130 million, including operating costs.

Preparations for drilling were underway and a farm in partner was being sought, then the 2010 Macondo incident happened, costing $65 billion to cap and clean up. This brought a rapid halt to the industry and new safety measures were devised, risk assessed and implemented.

Things were further delayed by new oil regulations (Petroleum Act) implemented in the Bahamas in 2016.

Between 2016 and 2020, a farm in/out partner was sought, but no deal was concluded. The decision to self-fund the 2020/2021 P1 drill was partly forced upon BPC, but also made much more accessible by lower rig rates, revising the drill costs down from around $100 million to around $30 million.

Feb 08, 2021 it was announced that BPC found oil, but not in commercial quantities. Farm in/out discussions have since recommenced.

Harry all of this was in an official RNS just 12 days ago. What news do you want that hasn't been released?

Do you think you know more than the BOD about funding status and spud dates? Do tell. Facts only please.

"16 February 2021

Bahamas Petroleum Company plc

("BPC" or the "Company")



Corporate and Strategic Update



BPC, the Caribbean and Atlantic margin focused oil and gas company, with production, appraisal, development and onshore and offshore exploration assets across the region, provides the following update on a range of strategic and corporate matters.



Highlights

· The drilling of Perseverance #1 fulfilled its core technical objectives and a post-well review is underway. In parallel, BPC is considering the most appropriate way forward for monetisation of its assets in The Bahamas, in particular, the renewal of an active farm-out process

· Near term operational activity is now focussing on the Company's 2021 work programme in Trinidad and Tobago and Suriname, targeting exit production of c.2,500 bopd, and prospect maturation in Uruguay

o Saffron appraisal well due to begin in Q1 2021 which, subject to results, would see BPC seek approvals for field development with up to seven production wells to follow through 2021

o Suriname appraisal well and Extended Well Test in the Weg Naar Zee Block due to also begin in Q1 2021"

https://polaris.brighterir.com/public/bahamas_petroleum_company/news/rns/story/xq63oqr

JR710 - That's Rockhopper suing for damages isn't it?