Bahamas Petroleum shares surge on licence renewal green light

Shares in Bahamas Petroleum Company (BPC) jumped on Wednesday after the oil and gas explorer received the all-clear to start drilling on four southern licences.

After agreeing terms of a licence renewal addendum last month, the Governor General of Bahamas has now given the green light for operations to start on the Bain, Cooper, Donaldson and Eneas licences.

BPC has held a 100% working interest in each of the licences since 2007.

The licence renewal addendum had already been agreed with the Ministry of Environment and Housing, but needed the counter signature of the Governor-General.

BPC said: “Signing of the licence renewal addendum by the Governor-General formally completes the licence renewal process and establishes the exact date pertaining to the renewal, such that the second exploration term of the four southern licences will now run until 8 June 2018.”

Under the terms of the addendum, BPC should start its first exploration well by April 2017.

The stock was up nearly 17% at 2.45p by 08:27.