Through an agreement with a European alternative asset manager it will immediately receive £7.5mln (US$10mln) through the issue of 375,000 new shares priced at 2p each. An option agreement allows it to access up to US$10mln (£7.5mln) within 10 days after the spud of Perseverance-1.
Simon Potter, Bahamas Petroleum chief executive pointed out that the arrangement is consistent with the company’s overall funding strategy and provides the flexibility to continue to pursue an aggressive growth agenda at a pace determined by the company.
He also described the financial backing as a “strong vote of confidence in BPC”.
"2021 will be a busy year for BPC in pursuing operations that have the potential to create considerable value for the company,” Potter said in a statement.
“We have a full slate of activity planned in Trinidad and Tobago and Suriname, where we are proposing an active drilling campaign of appraisal and production aimed at rapidly bringing wells directly into production and thus cashflow, building to 2,500 bopd production by the end of 2021.
“We will also be maturing prospects that will drive an active onshore exploration programme that is designed to deliver the next step-change in production beyond 2021.”
Potter added: ” In The Bahamas, we have the transformational Perseverance-1 well, for which operations are expected to commence imminently.
“And in Uruguay, we expect to commence early-stage evaluation of already identified leads, with a view to maturing drillable prospects from our high potential offshore licence.”