Bahamas Petroleum Company (BPC) received formal notification from the Government of The Bahamas as to the terms of the second exploration period for 4 of the company's southern licences in the territorial waters of The Bahamas.
Simon Potter, Chief Executive Officer of Bahamas Petroleum Company, said: “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.”
He emphasised: “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.”
Shares in BPC were up 21% following the announcement
SP Angel commented “While it is inconceivable that the government wouldn't have extended the licence term given that the biggest obstacle to progress was the governmental process and referendum their approved exploration in their waters, it is still a relief for the approval to be granted.”
The company said that its obligation during the second exploration period is to “safely implement an environmentally responsible exploratory well”. According to the terms of the licences, it will have the option to apply for a production lease over all or part of the licence area, and the option to extend the licences to a 3rd exploration period.
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