BPC.L Regulatory News (BPC)

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, OR INTO, THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.

30 September 2010

Bahamas Petroleum Company plc

("BPC" or the "Company")

Placing conditionally raises £5.1 million

Bahamas Petroleum Company plc, the oil and gas exploration company with licences in The Bahamas, announces that FirstEnergy Capital LLP and Novus Capital Markets Ltd, on behalf of the Company, have conditionally placed 120,000,000 new ordinary shares (the "Placing Shares") in the capital of the Company (the "Placing"). The Placing Shares are to be issued at a placing price of 4.25 pence per share to institutional shareholders, raising £5.1 million (gross).

 Highlights

·; Placing of 120,000,000 Placing Shares at a price of 4.25 pence per new ordinary share to raise £5.1 million (gross).

·; Net funds raised will be used for new seismic acquisition, expected to commence in Q4 2010 or early 2011, and general corporate purposes.

·; The Placing Shares are expected to be admitted to trading on AIM on 6 October 2010.

The Placing Shares will rank pari passu with all existing ordinary shares in the capital of the Company, and application has been made for the Placing Shares to be admitted to trading on AIM ("Admission"). Admission is expected on 6 October 2010, following which the enlarged issued share capital of the Company will total 979,482,698 ordinary shares.

Following Admission, the above figure of 979,482,698 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, BPC under the Financial Service Authority's Disclosure and Transparency Rules. The Company does not hold any shares in treasury. 

Alan Burns, Chairman and CEO of BPC, commented:

"We are very pleased to announce the Placing and the continued support from institutional investors. The proceeds from the Placing will principally be used to fund upcoming seismic activity focused around already identified leads, with the intention of progressing those to defined drillable prospects."

For further information contact:

The material set forth herein is for informational purposes only and does not constitute an offer of securities for sale in the United States or any other jurisdiction. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or the laws of any state, and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state laws. No public offering of securities will be made in the United States.

Past performance cannot be relied on as a guide to future performance.