Bahamas Petroleum Company PLC Licence Term Extended to 31 December 2020 (8018Q)
February 22 2019 - 2:00AM
UK Regulatory
TIDMBPC
RNS Number : 8018Q
Bahamas Petroleum Company PLC
22 February 2019
Friday, 22 February 2019
Bahamas Petroleum Company plc
("Bahamas Petroleum" or the "Company")
Licence Term Extended to 31 December 2020
Bahamas Petroleum Company, the oil and gas exploration company
with significant prospective resources in licences in The
Commonwealth of The Bahamas ("The Bahamas"), is pleased to announce
that the Company has received formal notification from the
Government of The Bahamas (the "Government") as to the term of the
second exploration period of the Company's four southern licences
in the territorial waters of The Bahamas ("Licences"), confirming
that the (current) second exploration period of the licences is
extended until 31 December 2020.
The notification received is in response to BPC's request for
clarification from the Government as to the term, timing of, and
work obligations pertaining to the Licences, in view of time
disruptions outside of the control of the Company since 2015. The
notification provides clarity and certainty to all parties as to
the tenure of the licences.
The Company's obligation during this second exploration period
is to safely implement an environmentally responsible exploratory
well. At the conclusion of this period, based on the results of the
initial exploration well and in accordance with the existing terms
of the Licences and the pertaining regulations, the Company will
have the option to apply for a production lease over all or part of
the licence area, and / or extend the licences into a third
exploration period and / or apply for an appraisal extension.
The notification received from the Government also stipulates
that the Government and BPC must in the coming months agree a
forward work programme for 2019 and 2020 and a reconciliation of
licence fees already paid, including during the period of
disruption, with any future licence fees due up to the end of 2020.
The forward programme will include the process for Environmental
Authorisation, in accordance with the relevant Act and Regulations,
based upon an application already submitted by the Company in April
2018. The Government has advised of the engagement of Black &
Veatch, a leading petroleum industry consultant, to assist with
this process. Black & Veatch previously advised the Government
in the process for the Company's Environmental Impact Assessment
(EIA), filed in 2012.
At the same time, along with its advisers, the Company continues
the process to secure a farm-in partner for the initial exploration
well - discussions are continuing with multiple third parties.
Simon Potter, Chief Executive Officer of Bahamas Petroleum
Company, said:
"The confirmation from the Government of The Bahamas that the
current term of our four southern licences extends to 31 December
2020 provides the Company with a certainty of tenure over the
Company's licences, replacing any perceived "above ground" issues
with complete clarity in fact and law. This position has been
arrived at following extensive government consultation and whilst
this has taken the Company a while to establish, there is now a
very clear two-year window to advance plans for and to drill an
exploratory well providing certainty to potential partners as we
move forward in our farm-out discussions. Today's news will add
considerable impetus to this process. BPC's focus remains singular:
to implement an exploratory well on its highly prospective assets
in The Bahamas to the benefit of shareholders and the people of The
Bahamas. We are encouraged by the support the Government has shown
throughout this process, thank them for it and look forward to
updating shareholders on further progress when appropriate."
Ends
For further information, please contact:
Bahamas Petroleum Company plc Tel: +44 (0) 1624
Simon Potter, Chief Executive Officer 647 882
Strand Hanson Limited - Nomad Tel: +44 (0) 20
Rory Murphy / James Spinney 7409 3494
Shore Capital Stockbrokers Limited Tel: +44 (0) 207
Jerry Keen / Toby Gibbs 408 4090
CAMARCO Tel: +44 (0) 20
Billy Clegg / James Crothers 3757 4983
www.bpcplc.com
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of this information may apply. For further information, please
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END
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