Bahamas Petroleum Company PLC (LON:BPC) has revealed plans to raise £7mln, to go with a previously announced £10.25mln, as the explorer continues to work towards a H1 2020 drill date for an exploration well.
In a stock market statement, the company told investors that it has now sent notice to contractor SeaDrill nominating a rig delivery date and expected well spud in the first quarter of next year.
It is now progressing the long-form documentation of the rig contract, BPC added.
Some £7mln is intended to be raised from investors via an open-offer share sale – with qualifying shareholders able to pay 2p per share to increase their holdings alongside the slightly larger, previously announced funding.
BPC noted that it has now entered into a subscription agreement for the planned £10.25mln issue of conditional convertible notes.
Efforts to bring in an industry-based funding partner via a farm-out transaction continues, but, these separate funding activities mean the company doesn’t need to put its plans on-hold whilst it awaits a deal.
“A farm-out remains our preferred funding option, and constructive discussions continue,” Simon Potter, BPC chief executive.
“At the same time, we are moving forward with additional components of a balanced funding strategy, so that we can deliver on drilling regardless of the outcome of these discussions.
“This includes giving our existing shareholders the first opportunity to participate in our next fundraising via an open offer.”
Potter added: “Given the progress made in relation to our funding strategy, we have notified Seadrill of our desire to receive a rig in late Q1 2020, and we are now working collaboratively with Seadrill on both finalising the long-form rig contract and preparing for drilling."
Bahamas Petroleum presentation to Proactive Oil Capital Conference – September 2019