About the company
Bahamas Petroleum PLC () is becoming a multi-asset ‘full cycle’ oil and gas firm, with assets in the Caribbean and South America.
In the Bahamas, it has five offshore licences covering four million acres and applications for a further five. The most advanced exploration prospect is Perseverance, a high impact prospect that could drilled later this year.
In June, the company expanded its exploration footprint as Uruguay awarded the OFF-1 licence covering a high-potential but early-stage area off the Atlantic coast.
Through an agreed takeover deal the company is set to acquire () for £25mln.
The deal adds production, appraisal/development, and exploration assets across Trinidad and Suriname.
BPC told investors that the combination will create a “Caribbean and Atlantic margin focused oil and gas champion”.
This ‘champion’ will own stakes in five producing fields, two appraisal and development projects in Trinidad, including a brand new discovery, a high impact (800mln to +1bn barrel) exploration well in the Bahamas, and expansive frontier exploration acreage offshore Uruguay and Suriname.
How it is doing
The hotly-anticipated first exploration well is expected to get underway potentially in the fourth quarter.
The Perseverance-1 well will be drilled in the northern segment of the ‘B Structure’ to target some 770mln barrels of recoverable prospective resources, with the ‘upside case’ estimates potentially pitched twice as high.
The B Structure is seen across some 70-80 kilometres and could host up to multi-billion barrels of crude resources.
Elsewhere, newly acquired acreage in Uruguay is described as being directly analogous to the prolific Cretaceous turbidite discoveries that are currently being evaluated and developed further north, offshore Guyana and Suriname. BPC secured the project via a low-cost option.
BPC described the Columbus assets as entirely complementary.
The production base in Trinidad will allow the company to generate cash. It comes with opportunities to leverage a range of low-cost developments via workovers, reactivations and new wells targeting shallow reservoirs, and new wells targeting shallow reservoirs.
Funded for Perseverance
BPC recently doubled a £8mln convertible loan facility with a local family office to £16mln, though it still wants to bring in a farm-in partner to help with costs of drilling the well.
In a statement, the group said the estimated cost of drilling its 100%-owned and operated Perseverance #1 well, targeting recoverable prospective resources of up to 1.4 bn barrels of oil, is between US$25mln and US$30mln.
The company’s overall funding capacity for its strategy was said to be approximately US$45mln.
What the boss says
“In one bold step we have given ourselves a production base in Trinidad from which to generate cash … We also have low-cost appraisal of existing discoveries in the South West Peninsula of Trinidad to look…
Read More: Bahamas Petroleum PLC set to become a champion with Columbus deal