Bahamas Petroleum highlights its strong financial position for 2019
BPC closed the year with $11.2m in cash reserves whilst further expanding its funding position with an $8m financing facility and a separate Bahamian domiciled mutual fund.
Simon Potter, CEO of BPC said shareholders should be encouraged “by the relatively strong financial position we are in as we look forward to drilling operations at the end of 2020.”
The group hailed its ‘significant progress’ achieved in 2019 toward drilling the Perseverance #1 well which is targeting 0.77 billion barrels of oil, with an upside of 1.44 billion barrels.
BPC previously postponed drilling at Perseverance #1 from the first half of 2020 due to the Covid-19 pandemic and to avoid drilling during the peak of the island’s hurricane season.
Shares in Bahamas Petroleum Company were trading 14.66% higher at 3.325p on Monday.
The company entered a new drill contract last week with Stena Drilling, replacing its previous contract for a drilling rig and setting ‘a firm window’ for a new spud date in the fourth quarter of 2020.
“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,” said Potter.
The company added that it had “acted quickly” in response to Covid-19, implementing appropriate cost control measures to preserve cash while “waiting for the dust to settle.”
“As a result,” Potter said, “we currently have retained significant cash reserves, and 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,” Potter added.
The group added that it believes it will be “back on track” towards the end of 2020 with an initial exploration well in the Bahamas.
“We are strongly positioned to drive this project forward to completion when global conditions once again allow,” added Bill Schrader, Chairman of Bahamas Petroleum Company.
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