Bahamas Petroleum PLC (LON:BPC) is becoming a multi-asset ‘full cycle’ oil and gas firm, with assets in the Caribbean and South America.
In October, BPC raised £9.5mln in an institutional share placing to boost the explorer’s funds ahead of the high impact Perseverance-1 well. Some 475mln new shares are being issued to a range of institutional investors, priced at 2p each.
Perseverance-1 is a high-impact exploration well – high risk and high reward – targeting estimated potential resources in the range of 770mln to 1.4bn barrels.
The equity raise is part of a drive to optimise its funding to achieve lower cost of capital, less aggregate dilution and greater certainty. As a result of the share placing, the company doesn’t expect it will need to draw on a previously arranged £16mln convertible bond.
The hotly-anticipated first exploration well is expected to get underway potentially in the fourth quarter.
The Perseverance-1 well will be drilled in the northern segment of the ‘B Structure’ to target some 770mln barrels of recoverable prospective resources, with the ‘upside case’ estimates potentially pitched twice as high.
The B Structure is seen across some 70-80 kilometres and could host up to multi-billion barrels of crude resources. Read more >>