Malcy's take on it DYOR15 Mar 2019 15:48
As inevitable as death and taxes is BPC’s need for moolah at this time of year, last year the friendly major brought in some but right now the company needs more for ‘ongoing funding’ and has thus announced a raise of $2.54m at 1.6p, a deep discount to last nights close of 2.55p.
The company is still seeking a farm-in partner to finance the exploration well but remain ‘confident’ now that the licence has been extended until 31/12/20 with ‘discussions ongoing’ with a number of potential partners. I would normally say that the process has now gone on for so long, and with the exception of last year’s fish that got off the hook, it is unlikely that a partner can be found.
There is one line of thought that I wrote about last time which just might give shareholders a faint chance for optimism, at least a straw to hang on to. If, say, last years fish had walked away from discussions because they thought that the licence might expire giving them an opportunity to negotiate with the Bahamas Government, that disappeared with the renewal. The data room clearly has serious potential partners in it, who is to say that last year’s candidate has not returned, but the only downside is that any prospective farminee will drive a hard bargain, 20/80 or maybe even 10/90…..