Bahamas Petroleum Results highlight Merger as Transformational
(BPC ) operation progress made during the six months ended 30 June 2020 was somewhat overshadowed by the merger with Columbus Resources, transforming the Company into a full-cycle oil and gas Company focused on the Caribbean and Atlantic Margin region, post period end.
Simon Potter, Chief Executive Officer of Bahamas Petroleum Company commented: "BPC finds itself transformed from where it started the year. We are now a full-cycle exploration and production company with multiple assets in one of the most exciting regions in our industry, with un-paralleled growth potential and the financial resources to enact our planned strategy.
Other operating highlights include:
- Perseverance #1 well now ‘drill ready’
- Quickly reacted to dynamic industry landscape during the Covid-19 pandemic to secure a state of the art drillship from Stena Drilling at a reduced day rate for the drilling of Perseverance #1, anticipated to commence in late December 2020.
- Progressed funding strategy through a £16 million unconditional convertible loan note facility entered into with a Bahamian family office in February 2020, including securing further funding in addition to cash resources
Financial highlights reflected the strict capital discipline maintained throughout the period resulting in a cash balance as at 30 June 2020 (before completion of Columbus Merger) of over $12m (FY19: $11.1m).
"The next six months have the potential to be company making for BPC and, as such, we look forward to providing further updates as we continue on our journey toward completing the drilling of Perseverance #1 in early H1 2021, and as we seek to expand profitable production activities and generate positive free cashflow from across the broader portfolio." added Simon.
Shares in BHC have performed strongly over the past month trading off lows of 2.0p to trade up from last nights close of 2.6p to 2.78p following publication of the results.
Outlook
Looking forward BHC confirmed operations at Perseverance #1 were to commence in late 2020 with a prospective oil resources of 0.77 billion barrels, with an upside of 1.44 billion barrels.
Furthermore, across the portfolio the Company confirmed there are work programmes being planned and implemented to increase production from between 400 to 450 bopd to a target of 500 bopd by the end of 2020, with longer term targets to increase production to 2,500 bopd net by the end of 2021.
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