Oil explorer listed on BISX

Oil explorer listed on BISX
The Bahamas Petroleum Company logo

NASSAU, BAHAMAS — The Bahamas Petroleum Company’s (BPC) Investment Fund has been approved for listing on the Bahamas International Stock Exchange (BISX), the company has reported.

In a recent update, The Bahamas-based oil explorer noted that it has now received confirmation that the Fund has been approved for listing on the Bahamas International Stock Exchange.

The company also revealed the Central Bank of the Bahamas Exchange Control Division has approved the process by which Bahamas Petroleum is to receive remittance of subscription funds, which is expected to take place shortly once the Central Bank has concluded the vetting of subscribing investors.

“Thereafter, the company and the Fund will complete the subscription process; the company will receive the subscription funds of approximately $0.9 million (which have already been received into the Fund’s account) and admission of the Fund shares to trading on the AIM will take place. The company will provide a further update once the remaining processes are completed and the precise date of admission is therefore determined,” BPC said.

The fund was established for the purposes of enabling qualified Bahamian investors to share in the outcome of BPC’s oil exploration project to commence this year.

The Professional Fund was set up for financial institutions and high net-worth individuals with a minimum buy-in of $10,000.

Exploratory drilling is expected to begin in October.

In an update to investors on license fees, BPC stated: “On 27 February 2020, the company advised that, consequent on the granting of Environmental Authorisation for the Perseverance #1 well, the company and the Government of The Bahamas had agreed a process seeking a final agreement on the amount of licence fees payable for the period to 2018 and the two years to December 2020 (if any, and subject to any reconciliations of prior amounts paid by the company that may be required).”

BPC added: “Subsequently, the company and the Government reached agreement in principle in relation to this matter within the agreed timetable, with final documentation (and thereafter payment) pending confirmation from the Bahamian Treasury of receipt of past payments made by the company to the Ministry (such past payments as previously reported in the company’s published accounts in 2012 and 2015).”

BPC noted that this confirmation process has been somewhat delayed owing to the State of Emergency declared and ongoing business disruption caused by the national response to the COVID-19 outbreak in The Bahamas.

It continued: “However, subject to said confirmation, the company expects that an appropriate side-letter agreement can be finalised in due course, and the outstanding amount paid. The amount of outstanding fees is agreed in principle and is expected to be finalised shortly.  The amount would be adequately covered by the proceeds of receipts from subscription for the Fund shares.”

4 comments

Surely with the low price of oil right now it would be more cost effective to buy and store rather than search for it in the beautiful Bahamian waters. Potentially ruining life as we now know it for humans and the sea life.

Janet,

I think you are under the influence of the many scaremongers about how damaging oil exploration actually is. Barring a few unfortunate and sometimes avoidable historical exceptions, The majority of oil exploration and in fact the majority of operating rigs have zero to insignificant levels of pollution from their activities. I live in Scotland which, like the Bahamas, has beautiful waters and pristine beaches. We have fruitful fishing grounds around the rigs and a sustained and diverse ecosystem to boot and please bear in mind the rigs in Scotland are about only 30 miles offshore. We have had well over three hundred oil rigs operating in the North Sea for the last 50 years with minimal effect on the marine environment. Although the money from that oil has been inefficiently absorbed into the UK government coffers, it is a substantial and Nation changing amount, especially for a country the size of the Bahamas.

With the current Global Pandemic, this is a time when the Bahamas needs to consider it’s financial future. Tourism with be massively hit. This exploration well (and it is only and exploration well at this stage) will be over 150 miles away from the mainland. It takes at least 3-5 years to start a field into oil production and by then I would expect there will be at least a threefold rise in the price of oil as other fields deplete.

I would implore that that the Bahamian people embrace the exploration well, let it happen and decide on those results whether it best serves the interests of the Bahamian people. Don’t look a gift horse in the mouth or you really might be throwing away a once in a lifetime opportunity.

Janet. I won’t fret. From any discovery to production will be at least 4 years and by then the oil price will have recovered fully. Modern safety practises and remediation in the event of a drilling problem are of the highest standards following mercondo well in GOM. The risks to the beautiful environment of the Bahamas are well lower than a plane crash!

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