Bahamas Petroleum completes merger with Columbus Energy Resources
has now completed its merger with international oil and gas exploration company, Columbus Energy Resources.
BPC struck the £25m all-share merger deal in June in a share for share exchange offer by BPC for the entire issued, and to be issued, ordinary share capital of Columbus.
Both companies have said they intend to create a Caribbean and Atlantic margin focused oil and gas champion as a result of the merger which will hold assets across the full spectrum of oil and gas activities, from exploration, appraisal and development to production.
The final decision for the merger was put into effect by means of a Court sanctioned scheme of arrangement under ‘Part 26 of the Companies Act 2006’ which will now see a total of 868,888,792 new BPC ordinary shares will be issued and allotted pursuant to the scheme.
Shares in Bahamas Petroleum Company have increased from 1.35p in June and were trading 0.84% higher today at 2.4p following the announcement
The combined group will have access to high-impact exploration wells in The Bahamas, five producing fields, two appraisal / development projects Trinidad, and an expansive frontier exploration acreage offshore Uruguay and Suriname.
"With the completion of the merger of BPC and Columbus, we today become a single company, in pursuit of a single-minded vision: the creation of a revenue generating, full-cycle, Atlantic margin exploration and production (E&P) business,” said CEO, Simon Potter.
He added, “Going forward, BPC is an exploration and production business, intent on generating reliable, growing production cash flows capable of supporting exploration activities, and which together will create significant value for all stakeholders.
The merger of the two companies allows each to provide something different from within that business cycle to the combined new company; each is providing what the other hitherto has not or does not have.
Together the asset base is more robust, has broader interests and is, as a consequence, more financeable and thus more valuable.”
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