31 Aug 2010 12:36
31 August 2010
BPC Plc
("BPC" or the "Company")
Licence Update
BPC, the AIM quoted oil and gas exploration company with licences in The Commonwealth of The Bahamas, notes the announcement from the Ministry of the Environment (Government of The Bahamas), issued late yesterday, concerning oil exploration in the country.
Included below is the full text of the announcement:
"Press Release
MINISTRY OF THE ENVIRONMENT
OIL EXPLORATION IN THE BAHAMAS
Nassau: The Public is advised that The Ministry of The Environment has suspended consideration of all applications for oil exploration and drillings in the waters of The Bahamas. The Ministry seeks, by this decision, to maintain and safeguard an unpolluted marine environment for The Bahamas, notwithstanding the potential financial benefits of oil explorations.
Additionally all existing licences will be reviewed to ascertain any legal entitlement for renewal.
Given recent events involving oil exploration and the efforts to prevent pollution, this prudent safeguard is essential to preserving the most vital natural resource of The Bahamas, its environment.
The Ministry will work diligently to complete and have in place, very stringent and environmental protocols for oil exploration prior to any further consideration of applications, given that oil is likely to be located in the marine environment of The Bahamas.
The Ministry of The Environment believes that this prudent policy requirement is in the best interest of The Bahamas and the social, economic and environmental wellbeing of future generations of Bahamian citizens and visitors.
The Hon. Earl D. Deveaux, MP
Minister of The Environment
30th August 2010
END"
BPC understands and appreciates the position of the Government of The Bahamas in delaying the granting of new applications and its reviews given the drilling bans in place in US waters until the cause of the Macondo blowout are fully determined and appropriate new controls are put in place.
In the meantime the Company will continue to process and seismically explore its existing granted licences, which contain the majority of BPC's targets. The Directors believe that by the time BPC's drilling program is more definitive, the situation brought about by the Marcondo incident will become clear and that appropriate and stringent controls will be in place. BPC is committed to working with the Government of the Bahamas to ensure that the highest exploration and environmental standards are in place.
Recently BPC completed a baseline sampling in the southern Bahamas to establish the presence of oil and tar balls prior to any possibility of contamination arriving from the BP spill. The sampling showed the presence of pre-existing tar balls and oil seeps washed ashore that were not from the BP source. This oil appears to be sourced from natural seeps and possibly oil tanker spillage. Bahamas waters have through traffic of a large percentage of the world's oil tankers.
Alan Burns commented, "Whilst we note this short term situation, there are exploration activities including drilling, proceeding in adjacent Cuban waters and significant previous drilling within the Company's current licence areas that we believe we do not face the same geological risks as those encountered in the US Gulf of Mexico.
"We enjoy a good relationship with Bahamian authorities and are confident that this situation will be resolved quickly."
Enquiries:
| BPC Plc Alan Burns, Chairman and CEO Dr Paul Crevello, Chief Operating Officer
|
Tel: +44 (0) 1624 641199 Tel: +1 720 771 7583 |
| Strand Hanson Limited Rory Murphy / Liam Buswell
|
Tel: +44 (0) 20 7409 3494 |
| Novus Capital Markets Ltd Charles Goodfellow / Paul Dudley
|
Tel: +44 (0) 20 7107 1872 |
| FirstEnergy Capital LLP Hugh Sanderson / Derek Smith
|
Tel: +44 (0) 20 7448 0200 |
| Financial Dynamics Billy Clegg / Ed Westropp |
Tel: +44 (0) 20 7831 3113 |