Bahamas Petroleum Company reduces some expenses as development progresses

Pre-revenue oil and gas explorer Bahamas Petroleum Company reported a 12% decrease in ‘other expenses’ in its half-year results on Friday, compared to the prior six month period, due to its cost control programme despite “significant activity”.

The AIM-traded firm said it saw a 19% reduction in its operating loss year-on-year for the six months ended 30 June, when adjusted for write-offs agreed by the chief executive officer to his remuneration package in the prior period.

Its reported operating loss, however, widened to $1.49m (£1.21m) from $0.59m a year earlier.

Bahamas successfully raised $2.5m in working capital during the half, which it said would be used to continue the technical, environmental and operational work in support of its well planning.

On the operational front, Bahamas Petroleum Company noted the extension of its second exploration period in respect of its licences to 31 December 2020.

It said its technical, environmental and operational activities progressed positively during the half-year, with a view to start the drilling of the first exploration well in the first half of 2020.

Since the period ended, Bahamas said it had entered into a framework agreement with Seadrill for the provision of a rig in the first half of 2020, and had appointed Halliburton for integrated well services, and BakerHughes GE for the provision of various well-related equipment.

A £10.25m ($12.5m) conditional convertible loan note was also finalised in a bid to underpin finance necessary for the drilling of the well if required, with additional finance sources being evaluated, and a farm-in process continuing.

The board also seeked AGM approval for temporary authority for the issue of new shares to further contribute to the financing of drilling, if required.

“2019 has proved to be a year of positive progress and developments for Bahamas Petroleum Company, with a number of key milestones having been achieved,” said chief executive officer Simon Potter.

“The extension of our licences to December 2020 and the requirement to commence the drilling of our obligation well in this timeframe has given us a renewed clarity of focus.

“Accordingly, we have begun taking all necessary steps to secure in principle the rig, oilfield services and equipment we need, from leading global suppliers, that will enable us to responsibly deliver our first well.”

At the same time, Potter said the company was also pursuing a number of potential financing options.

“On behalf of the board and staff of Bahamas Petroleum Company, I would like to thank the government of the Bahamas and all of our shareholders for their continued support of the company.

“I believe that the next six-to-nine months will be a company making time for Bahamas Petroleum Company, and I look forward to providing further updates as we progress toward the drilling of an initial exploration well in the first half of 2020.”