London-listed Bahamas Petroleum Company (AIM:BPC) said it will commence drilling at its first exploration well, Perseverance #1, in April 2020 with results anticipated in the second quarter of this year.
The Bahamas-focused oil and gas firm told investors on Thursday that it had entered the final stages of preparation at the well which will be drilled in the northern segment of the ‘B Structure’.
The drilling at Perseverance #1, which is 100% owned and operated by BPC, will target recoverable prospective resources of around 0.77 billion barrels of oil, with a potential upside of 1.44 billion barrels solely in the northern segment.
The B structure, which extends between 70 and 80kms, could hold a recoverable resource potential in excess of 2.0 billion barrels, the statement outlined.
“Perseverance #1 has the potential to open a world class, new frontier basin offshore Bahamas, less than 200 miles from the world’s largest hydrocarbon market/infrastructure,” said Simon Potter, Chief Executive of BPC.
Shares in BPC were trading 12.26% higher at 2.975p on Thursday morning.
BPC has worked to finalise contracting over the past months, the statement highlighted, as well as procuring various other equipment required for the drilling campaign.
Potter labelled Perseverance as “one of the premier prospects that could be drilled globally this year.”
BPC said it believes the prospect holds the potential to both alter the status of the company as well as transform the revenue generating capacity of the Bahamian economy.
In addition, BPC said it ‘remains confident’ of receiving appropriate approval for Environmental Authorisation in a timeframe consistent with its intended drilling campaign.
Meanwhile, the company informed investors that its Bahamian Mutual Fund, which was opened on 6 January under the 1992 Companies Act of The Bahamas, had been ‘well received’ with indications of demand expected towards the end of the subscription period.
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