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The excitement Simon Potter is referring to is the well result and the fact the basin is hot and slam bang in the oil window. The Jurassic has produced oil and is now the main play and can be drilled. All that is needed is a partner to drill it. It's now confirmed that there is a huge sub salt play covering the entire basin. The majors are trying to tap this Jurassic sub salt play in the Eastern Gulf of Mexico. Note EASTERN. ie Next to The Bahamas. They now have an alternative and more economically viable option in The Bahamas.

It's amazing how people misinterpret or don't listen properly to interviews and RNS's. Simon Potter clearly says they are excited about the Bahamas.

https://www.pscp.tv/w/1jMJgpqnZelxL

In until spud in 10 months time so not a P&D. Likely to take more.

Sadaat Umar
@sadaatumar
·
17m
Replying to
@DavidMlondon
and
@Me32063
If you think, AEX is P&D; then no point for buying. Drill is after 10 months or so. Let’s buy at bottom and wait till spud, and let’s see how much it rise.

Way undervalued based on forward work programme and investment being made by ARA.
Market values Ntorya as zero. £0. That's crazy, imo.

10m buy order at the close did not get filled. So someone was desperate.

BPC will not draw on the facility in one go so they will not borrow £10m. They can borrow up to £8.5m in aggregate by 16th April to extend the £10m facility to 30th June 21. They have already borrowed £5m, so they have another £3.5m available should they wish at 0.8p by 16th April, which will then allow a maximum of £10m to be borrowed by the end of 30th June 21. Coupon will be payable periodically throughout the term of the Notes, on each of 30 June 2021, 31 December 2021, 30 June 2022, 31 December 2022, 30 June 2023, and 31 December 2023 (each an "Interest Payment Date")

The Company, which is targeting material growth in production and cashflow through the course of 2021 and beyond, will have the ability to cash settle coupon (all or in part) throughout the term of the Notes, which will then allow the Company to use available surplus cashflow from production for this purpose, thereby reducing the overall potential dilutive impact of the Notes;

No you are not correct. There is no dilution with a RBL prepayment against reserves. The o.8p rebase represents fair value. The market is currently undervaluing BPC. A farm-out is also additional funding and will negate the need for any other facility. dyor.

The conditions are not related to the rebased price.

If you read the RNS properly you will see they have a facility at 0.8p a prepayment facility against reserves being finalised and surplus cash from increasing production revenue dependent on oil price staying at current levels. 0.3p is Dreamland.

Now that Perseverance has confirmed a Gulf of Mexico Jurassic pre salt play, it moves higher up the list for majors to farm-in. The added notable benefit of the shallow water and low cost of drilling compared to GoM, along with the size of structure and potential for shallower targets in the Aptian, all makes for a compelling case for a farm-in partner and a second well. imo, dyor.

This is way too cheap with 3D seismic about to kick off and rig contract and long lead items ordered for drilling.

They are building a gas pipeline next to the oil pipeline.

If you read the RNS carefully, it's extremely positive regarding the farm-out discussions, the primary play confirmed in the deeper oil window similar to be Eastern Gulf of Mexico that majors are actively exploring and the decision to extend the licences, which include a commitment to drill a well which will only realistically be done with a partner. The additional $10m cost for the well, ($3m Covid which successfully identified 14 cases and $7m for the sidetrack), if you read carefully, the invoices have not been finalised. Refunds are owing and the final invoices will be issued when final amounts are agreed and, a schedule for payments over the coming months, which means money will not be owed immediately. this will allow payments to be managed while moving ahead with the work programme in T&T and Suriname as already announced.

Kicking off the farm-out process with Gneiss after having discussions with industry partners is likely to indicate a fast paced farm-out, considering application for the licence extension needs to be submitted to The Bahamas Government by the end of March. imo, dyor.

As a consequence of farm-out discussions, BPC has decided to renew the licences for a new three year exploration period with a commitment to drill a second exploration well. In all probability, as a result of the farm-out discussions.

Since the completion of the drilling of Perseverance #1 , the Company has had discussions with industry counterparties in relation to a potential farm-out of its licences in The Bahamas, and is working to formalise an entirely new farm-out process. Consequently, the Company intends to renew the four southern licences in The Bahamas into a third, three year "drill or drop" exploration period

"Deeper geothermal gradient data placing the oil maturation window deeper stratigraphically has critical implications for the deeper Jurassic play that produces oil in the Eastern Gulf of Mexico from an analogous play type (and which is the current focus for several companies actively exploring in the region)."

So there you have it. Oil maturation window confirmed deeper in the Jurassic pre salt, which is where the majors are drilling in deep waters of Eastern Gulf of Mexico. Bahamas is a lot shallower with lower drilling costs and more attractive particularly now Perseverance has confirmed the mature oil window. This also has the benefit of finding shallower oil that has migrated into the Cretaceous and can look for these structures once the recalibration of the 3D has been done with the Perseverance data. The next drill will better target both the shallow closures and deeper Jurassic pre salt prospect. This gives huge confidence to a major now there is a better understanding of the working petroleum system and to BPC to extend the licences for another 3 years. imo, dyor.

All good. Market looks 6 months ahead. With confirmation 3D seismic about to start and prep in second half for drilling, sp will increase as the ops updates get announced. Good time to get cheap shares.

Hi Riceman, The main point is LO publicly stated they regret funding BPC. Talking down ones own investment in a company would have breached their obligations to BPC, imo so no reconciliation on what was a damaging comment about BPC at a sensitive time. I don't think there would be any reconciliation below the 2p price for LO. imho.