Grant of Share Options

28 October 2011

Bahamas Petroleum Company plc

("Bahamas Petroleum" or the "Company")

Grant of Share Options

Bahamas Petroleum, the oil and gas exploration company with offshore licence permits in The Commonwealth of The Bahamas, announces that, on 27 October 2011, the remuneration committee of the Company approved the grant of options over, in aggregate, 6,000,000 ordinary shares of 0.002 pence each in the share capital of the Company ("Ordinary Shares") to certain directors of the Company (the "Options"). In addition a further 2,000,000 options have been granted to Paul Gucwa, the Company's Chief Operating Officer (non-board position) on the same terms.

The Options are exercisable over a 5 year period from 27 October 2011 and will vest once the share price of the Company reaches 18.75 pence. The Options are exercisable at a price of 7.4 pence, being the closing price of the Ordinary Shares on 27 October 2011.

Details of the grant of Options to the directors of the Company are as follows:

Details of the grant of Options to an employee of the Company are as follows:-

It should be noted that of the 5.5 million options that were announced as granted to employees and consultants on 12 April 2011, only 1 million were issued with the remaining 4.5 million options having been cancelled prior to issue.

Following the grant of options on 27 October 2011, there are now in total 21,500,000 options over Ordinary Shares outstanding, representing 1.75% per cent of the shares currently in issue.

- Ends -

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