Bahamas Petroleum surges on exploration license extension

Bahamas Petroleum (BPC) shares surged on Monday after an agreement was reached with the government to extend its exploration license until the second-quarter of 2018.

The explorer also received a confirmation that the license would incorporate territory up to Cuba's maritime boundary, as well as an extension on its initial drilling operations deadline, which has been pushed back April 2017.

“We are very pleased with the signing of the Licence Renewal Addendum extending the term of the four Southern Licences,” said chief executive Simon Potter.

“This now gives BPC an unambiguous marker for future activity and a clear period of time in which to both secure a suitable farm-in partner and undertake the necessary preparatory work to ensure safe and responsible drilling operations,” he added.

The news follows the postponement of the Bahamas' Petroleum Act, which was supposed to be announced on May 13 by the country's Minister of Environment and Housing.

Potter praised the announcement for its synergy between safe, sustainable exploration and national energy strategy.

As of 3:00pm, BPC shares were up 0.3p, or 17.65%, to 2p each.