Bahamas Petroleum (BPC ) said it is currently evaluating near-term operational activities in Trinidad and Tobago and Suriname to exit 2021 with net production of 2,500 bopd.

A week on from the completed drilling of Perseverance #1, the Caribbean and Atlantic margin focused oil and gas firm said a post well review is underway as it considers an appropriate strategy for monetisation in regard to a possible renewal of a farm-out process.

"The Stena ICEMAX has just left the drilling location and is off hire. However, the pace of operations has not ceased - the post-well review has begun, as the Company charts its way forward in The Bahamas with a renewal of the farm-out process,” said CEO, Simon Potter.

The Group said it has already received ‘a number of unsolicited approaches’ from industry counterparties. It said Gneiss Energy has been formally engaged to assist in managing a formal process to solicit broader interest in a farm-in alongside this early, positive interest.

Meanwhile, the Group informed investors that drilling at the Saffron appraisal well located in Trinidad is due to begin in 1Q21 which, subject to results, would see the Company seek approvals for field development with up to seven production wells to follow through 2021.

In Suriname, BPC intends to drill an appraisal well and conduct an extended well test in the Weg Naar Zee Block in 1Q21. The Group said that, subject to results, this could rapidly move into a wider field development, with up to six production wells to follow through 2021.

BPC told investors that it has adopted a funding strategy that will focus on consolidating and strengthening its balance sheet, in support of directing maximum effort toward ‘planned value-adding drilling activities’ across Trinidad and Tobago and Suriname during 2021.

“BPC has already moved to consolidate and strengthen its balance sheet, so as to ensure all value-add options to grow productions and cash generation in Trinidad and Tobago and Suriname are maintained. Over the coming weeks BPC will fully close out the Perseverance #1 operation and set the final timetable for operations elsewhere across the portfolio,” it said.

BPC added that consistent with its funding strategy, it has restructured and extended its convertible note facility along with a further £2m drawn and has reconciled the initial £7.5m tranche of the December 2020 funding agreement without needing a net cash payment.

In addition, the Company said it has also issued 135 million new ordinary shares in lieu of cash settlement of a number of current financial obligations.

Shares in Bahamas Petroleum Company have taken a recent hit after drilling at the Group’s Perseverance #1 well did not identify commercial volumes. However, shares in the stock ticked up 0.75% to 0.675p this morning as BPC outlined to investors its latest objectives, which includes drilling several new wells during 1Q21. 

Reasons to Follow BPC

BPC is becoming a multi-asset ‘full cycle’ oil and gas company, with a range of exploration, appraisal, development and production assets and licences, located offshore in the waters of The Bahamas and Uruguay, and onshore in Trinidad and Tobago, and Suriname.

Successful Acquisitive Growth

As a result of its merger with Columbus, BPC has been granted access to high-impact exploration wells in The Bahamas, five producing fields, two appraisal / development projects Trinidad, and an expansive frontier exploration acreage offshore Uruguay and Suriname. 
 
BPC believes the merger will allow both groups to provide something different from within that business cycle to the combined entity and that together the asset base is ‘more robust, has broader interests and is, as a consequence, more financeable and thus more valuable.’ 
 
“With the completion of the merger of BPC and Columbus, we today become a single company, in pursuit of a single-minded vision: the creation of a revenue generating, full-cycle, Atlantic margin exploration and production business,” said Potter in August. 

He added, “Going forward, BPC is an exploration and production business, intent on generating reliable, growing production cash flows capable of supporting exploration activities, and which together will create significant value for all stakeholders.”

2021 Operations

Following the conclusion of the Perseverance #1 drilling programme, BPC is seeking to consolidate and further strengthen its balance sheet, so as to direct maximum effort towards planned value-adding drilling activities in Trinidad and Suriname during the course of 2021.

BPC’s 2021 work programme in Trinidad and Suriname is focused on near term operational activity, targeting exit production of c.2,500 bopd as well as prospect maturation in Uruguay.