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Bahamas Petroleum highlights strong financial position as it awaits Perseverance exploration well

A new rig contract was signed envisaging a fourth quarter spud date for Perseverance

Bahamas Petroleum Company PLC - Bahamas Petroleum Company highlights strong financial position as it awaits Perseverance exploration well

Bahamas Petroleum Company PLC (LON:BPC) has posted full-year results highlighting the explorer’s relatively strong financial performance, as it awaits a hotly anticipated drill programme that was delayed amid the coronavirus (COVID-19) pandemic.

Financial results for the twelve months ended December 31, 2019, confirmed BPC finished 2019 with US$11.2mln of cash.

Subsequently, the company has further supported its funding position with a £8mln financing facility with a Bahamian private family office investor and the establishment of a separate Bahamian domiciled mutual fund to specifically investing BPC shares.

READ: BPC inks rig contact for Perseverance exploration well

The previous project timelines saw the Perseverance well taking place now, late May or early June, and, last week a rig contract with signed with a new spud date envisaged in the fourth quarter.

"Our exploration well, 'Perseverance #1', is aptly named,” said Simon Potter, BPC chief executive.

“During the period of these accounts we achieved so much, including unambiguous licence tenure, a rig framework agreement, contracting with globally renowned service companies for our drilling campaign, successfully initiating a funding strategy with you - the shareholders - coming first, creating a structure to allow Bahamians the opportunity to invest in their nationally significant project and obtaining Environmental Authorisation from the Government of The Bahamas.

Potter added: “But even in the face of a dramatic and deeply impactful global pandemic we have remained resolute in our single-minded focus - to deliver the well.

“To this end we have rescheduled our program, revisited our funding strategy, and most recently unconditionally contracted a drilling rig with a window for commencement of drilling beginning before the end of 2020, affording the company the greatest assurance of 60 days of continuous operations necessary to complete the well.

“This chosen window demonstrates our clear intent to proceed to drilling without unnecessary delay, being the earliest opportunity post the 2020 hurricane season in The Bahamas, and by which time we expect the worst of the COVID-19 impacts to be behind us.”

Potter noted that BPC has preserved all relationships with backers intent on flexibly supporting the Company once operations are able to resume.

“Moreover, the company's prospect has not changed: the same rocks will still be there at such time as safe and responsible operations can resume, and shareholders can rest assured that the entire team at the company will continue working towards drilling with the same commitment and belief that has got us to this stage,” he added.

Quick facts: Bahamas Petroleum Company PLC

Price: 2.4 GBX

LSE:BPC
Market: LSE
Market Cap: £97.18 m
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