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Bahamas Petroleum Company raises £2.6mln as farm-out talks continue

Published: 07:51 14 Jun 2017 BST

Offshore oil operations
It is issuing 260mln new shares priced at 1p each

Bahamas Petroleum Company Plc (LON:BPC) has received a £2.6mln (US$3.25mln) injection from investors as it continues to work on partnering talks for its exploration projects.

The company raised the capital via a share placing, selling 260mln new shares priced at 1p each.

Most of the cash will be used to ensure the group’s licences are ‘maintained in good order’ whilst the farm-out process continues.

BPC declared it was “confident” of being able to conclude a farm-out deal and highlighted that sentiment in the oil market was improving and there was renewed interest among industry major for frontier exploration plays.

It said that commercial negotiations are ongoing with several parties, and noted that some parties had now re-entered the process.

"BPC has assets that are potentially world class in scale,” said Bill Schrader, BPC chairman.

“Over the past eight years the company has substantially delineated and de-risked its assets, both technically and commercially. The next step is drilling.

“In order to do this, BPC needs to source funding, and our strategy remains to do so from an industry partner, via a farm-in.

“BPC has made pleasing progress on this task, is in active commercial negotiations with a number of parties, and the board and I remain confident that a farm-in will ultimately be concluded as evidenced by our expressed interest in participating in the placing once we are permitted to do so by the closed period trading rules.”

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