BPC.L Regulatory News (BPC)

20 November 2019

Bahamas Petroleum Company plc

("Bahamas Petroleum" or the "Company")

Contractor and Long-Lead Item Update 

Bahamas Petroleum Company, the oil and gas exploration company with significant prospective resources in licences in The Commonwealth of The Bahamas, is pleased to provide details of continued progress toward drilling its first exploration well in The Bahamas in 2020.

Highlights

·; Master Service Agreement entered into with BakerHughes GE

·; Purchase of wellheads and 36" conductor casing for delivery in March 2020, consistent with schedule for spudding the well

Details

In August 2019, Following extensive technical discussions and mutual due diligence, BPC received proposals (including pricing) for a range of well-related equipment, including wellheads and tubulars, for the intended drilling 2020 campaign. At that time, and as previously announced, BPC issued a notice of award to BakerHughes GE for provision of that equipment, as a precursor step to a detailed contract as is customary in the industry. 

As contemplated, and following a further period of negotiation and collaborative work, BPC has now entered into a Master Services Agreement ("MSA") with BakerHughes GE for the provision of specified equipment.

Further, and pursuant to the MSA entered into, BPC has now also placed a first purchase order with BakerHughes GE, for a wellhead set, a contingency well head set, and 36" conductor casing. The wellhead set is being manufactured to order for BPC's intended well, and delivery is expected in a timeframe consistent with the current drilling schedule.

Simon Potter, Chief Executive Officer of Bahamas Petroleum Company, said:

"Finalising the Master Service Agreement with BakerHughes GE has enabled us to reach a long-awaited and significant milestone for our company: placing an order for the wellheads that have been made to order for our exploration well in The Bahamas. In ordering these high value, critical path, long-lead items, along with the other multiple work streams ongoing, management is taking demonstrative steps to ensure we remain on track for drilling to commence as per our previously announced drill schedule."

For further information, please contact:

www.bpcplc.com

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