Member Info for PageofCups

Yonny, A lot of drills are being put on hold as oilers rein in some of their capex, mainly due to the oil price. Service providers are foreseeing a lot of pain. More rigs available as a result, so rates will come down. BPC should be in a good position to pick up a rig at excellent day rates, or renegotiate with Seadrill if there are other rigs available elsewhere. Would say it's made a rig selection a bit easier as more become available, if the West Saturn can't be used. Get that drill cost down even further so draw down on CLN is reduced. Options opening up with the slight delay and macro situation.

Can't be far wrong on the buy side at this price.

Interestking - It is a good time sir.

Some Samsung guys from S. Korea and kit, but they will come in via another Caribbean route.

Rig workers are from the US. Everything is loaded up at Fourchan. No personnel are coming from the Bahamas other than those already in country. Offices are set up in Houston. May drill date coincides with Exxon contract for the West Saturn. Not saying Exxon are drilling the well, but 31st March is the date for a decision on the scale back of the CLN without penalty. Should know then what the status is with the farm-in.

First and foremost, this is about finding out if oil is in the Bahamas. Oil prices at this stage are a misnomer.

Everyone missing the question of why would the Bahamian investor double their investment at a time like this?
Is it
A. They like a gamble.
B. They know a decent farm-in is on the table.
C. They haven't heard of Coronavirus or that oil is at $30 a barrel.

Great RNS. Certainly gives the super majors something to think about, just when they thought they had a chance of getting what they wanted.

Drill is being run from Houston, not UK, so flight ban does not affect engineering team Seadrill, Halliburton, BH's, etc.

Informative update laying out the pleasing progress for the farmin and the prudent management of executing Perseverance without leaving the company exposed to unnecessary risk, giving breathing space for BPC and the super majors, and the drill. The fall in oil has forced a reassessment of shale oil, with a lean towards conventional oil. The importance of new conventional plays with large scale and close to existing markets are far more attractive in the new pricing environment for oil and cost environment for drilling. This puts BPC's proposition in a new light to those who were focused on shale. Super majors strategies have to change to the new pricing environment. Exxon has been in tune for a while with successes under their belt in Guyana, allowing for their strategy to continue at a more attractive proposition to BPC, while others catch up, that can only be done on better terms than Exxon.

Definitive moment for majors, magnified by the current situation which weeds out the chancers, leaving only serious players who are really keen. For BPC the fact they have those serious players in love with the prospect, it will never be admitted by the likes of Exxon however the fact they have not been frightened off speaks volumes and can be used by BPC as a point to extract maximum value. That, and the fact they are able to say see ya..we will just drill for 1Bn barrels ourselves and then well talk some more.

Please do not be concerned about corona or the oil price affecting a farmout deal. Exxon are looking years ahead. Projects of this nature need a lot of work before a drop of oil is produced. That work doesn't stop and is best done when costs are low, like now. Bahamas economy have been impacted by Dorian and now Corona and tourism for 2020 will be well down on previous years at a time when this can be ill afforded. Brings into focus the need for oil to deliver asap, if only to be proved as a reserve to at least give the Bahamas something as a new asset to boost their economy at a time most needed. Very keen for this to succeed and for BPC to drill.

Exxon adding another rig for drilling in Guyana Q2. Brazil drilling was the West Saturn for H2, but logistically swap that for Guyana, and Bahamas, on farmout deal. The game played by majors of running the clock down has been limited until 31st March, so they don't have long to get onboard.

I would say Exxon are up for it!

Of course the rig has been identified for the insurance to be arranged. The insurance proposals need reviewing to ensure it covers all eventualities. The rig will then be contracted. All substantive conditions will have been met. I would just contract the rig and say to the major if you want to farmin, this is the rig we are using and we can drill wells with it.

You cannot enter into a rig contract until the insurance has been reviewed and signed. BPC are in the process of doing this. The insurance is a pre-requisite for mobilising the rig.

RNS is very informative giving assurance that all bases covered by BPC and 31st March is a bit of a deadline for the farmout super major to close the deal that they are now clearly wishing. Terms yet to be determined, however the oil price is bringing into reality the robustness of this project as majors can see the location, volumes, oil quality and drill costs for this project is an insurance against a low oil price, especially compared to oil shale and ultra deepwater, GoM or Brazil. CLN subscribers will still be rewarded on farmout by being able to draw down 50% but with 100% still available should the super major fail in it's quest. All service contracts ready to be signed and Bahamas government ready to agree licence fees granted to end of 2020, which will probably be something the super major wants seen as paid as part of a farmout so the drill is sound. Multiwell drill with a Super Majors rig, working in Guyana? Not far to Bahamas.

They are like trolls. The news outlets and media need doom and gloom as it's what gives them oxygen. Just turn the TV off.

Any gas deal like the OneDyas asset is going to take huge financing and equity raising. They can't do it at this sp. Too much dilution and risk. Unfortunately the BoD have caused a lot of damage to the company, imo.

The only gas assets that will be available are bad assets, imo.
All the good ones that are still profitable won't be for sale. The owners of all the rubbish ones will just mothball and wait for the gas price to increase rather than sell them at a knock down price. Unless they can find a gullible buyer..