Bahamas Petroleum (LON:BPC) shares shot-up by 33% after a new Petroleum Bill and associated legislation was passed by the Bahamian Senate.
In a stock market statement, BPC told investors that Bahamas Governor General will now receive the bills for signing and they will subsequently be passed into law.
The new legislation, which provides an upgraded and modernised framework for petroleum operations in the Bahamas, will be known as the Petroleum Act and the Sovereign Wealth Fund Act.
BPC said the Sovereign Wealth Fund Act was designed to ensure accrued wealth from exploration success and subsequent development could be optimally invested, managed and conserved.
This new framework is expected to make it easier for BPC in its efforts to drilling the first modern oil exploration well in the Bahamas, following the last wells programmes in the 1970s and 1980s.
On AIM, BPC rose to an early high of 2.3p per share. And at around 8:15, the oil share was up 21% changing hands at 2p.