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BPC raises £2.4 mln for working capital, looks to secure Bahamas oil licenses for Statoil JV

11th Mar 2010, 11:19 am BPC raises £2.4 mln for working capital, looks to secure Bahamas oil licenses for Statoil JV

BPC (AIM: BPC) has placed 69.8 million new shares to raise £2.4 million to meet its working capital requirements and reiterated its intention to re-domicile from the Falkland islands to the Isle of Man.

The shares were placed at 3.5 pence, representing a 15% discount to the stock’s closing price yeasterday of 4.1 pence.

BPC and Norwegian oil major Statoil (NYSE: STO) formed a joint venture last year to launch an exploration project in the Bahamas, which is believed to comprise multiple 500 mmboe (million barrels of oil equivalent) oil fields in 18 leads recognized in BPC's southern Bahamas licenced area.

The JV area is adjacent to four wholly owned licenses held by BPC in The Bahamas, as well as near an existing license held by StatoilHydro in adjacent Cuban waters.

“We are very pleased to announce this placing of shares, which was well received by institutional investors. The placing includes a number of new institutional investors, which further widens the company's shareholder base and will provide stability for the business in its next stage of development. The board believes that this represents a glowing endorsement by the investment community of the BPC strategy and our assets in the Bahamas, and we look forward to delivering shareholder value throughout the development process,” said chairman and chief executive of BPC Alan Burns.

The company expressed confidence in securing the licences for the BPC/Statoil JV, after which it intends to complete the re-domiciling.

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