Company expects to have sufficient cash flow to fund well
NASSAU, BAHAMAS – Bahamas-based oil exploration company Bahamas Petroleum Company (BPLC) has raised $11.4 million to help spud an exploratory well in the first half of 2020.
New shares in the company were issued via a placement and separate open offer, with the total funds raised representing an oversubscription of 60 per cent against the company’s initial target.
The company’s open offer closed with 50 percent take-up from existing shareholders raising gross proceeds of US$4.3 million through the issue of 166.4 million ordinary shares.
The placement raised additional gross proceeds of US$7.1 million through the further issue of 275,641,455 ordinary shares.
Gross proceeds from both offers totaled US$11.4 million representing an oversubscription of 60 per cent against announced targeted fundraise amount.
As a result of the Open Offer, the Placing and a previously announced Conditional Convertible Note, the Company expects to see gross cash inflows of approximately US$24.6 prior to March 2020.
Those proceeds according to the company would likely to be sufficient to drill an exploratory well in waters south-west of Andros, near the maritime boundary with Cuba.
The company has also stated that it continued to pursue a farm-out as part of its overall funding strategy among a number of other financing options.
As BPC moves closer to securing a drill rig and spudding its exploratory well, local environmentalists have continued to voice their concerns over the prospect of oil drilling in Bahamian waters.