In a matter of days BPC has shed its single-country focus and lined up a ‘full cycle’ portfolio of assets.
Bahamas Petroleum Plc () continues to surprise and impress with its bold growth strategy which has sees the company transformed over just a few days.
A deal announced on Thursday marks the biggest change by adding production, appraisal/development, and exploration assets across Trinidad and Suriname.
Earlier in the week, BPC expanded its exploration footprint as Uruguay awarded the OFF-1 licence covering a high-potential but early-stage area off the Atlantic coast.
These are the latest but not only significant steps that BPC has taken towards ‘company making’ growth.
It has previously taken frontier Bahamian acreage to the cusp of high-impact drilling with the Perseverance. This has only temporarily been held up by pandemic, and, is slated to get underway as soon as the fourth quarter.
Perseverance, targeting close to 800mln barrels of crude, has been said to be one of the “premier prospects” to be drilled anywhere in the world this year.
Not only is it a big prospect, it is also – presently – the sole participant in the venture with 100% of both the risk and reward. It is a bold move and ambitious project. The kind of move that’s a lot less common than it used to be in the small-cap oil sector.
This week though BPC has doubled up with another ambitious and quite rare move, picking up high potential but untested acreage from the Uruguayan government.
The new acreage, the OFF-1 licence, is much earlier stage than BPC’s project in the Bahamas though could in time prove to be as rich in potential. Estimates presently envisage 1bn barrels of resource potential, based presently on seismic data and desktop work.
OFF-1 spans some 15,000 square kilometres and hosts exploration play systems that are believed to be 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, with arrangements similar to those previously used to secure the Bahamas opportunity.
Also like the Bahamas opportunity, BPC reckons it can achieve a significant value uplift by completing the initial stages of exploration to advance towards making ‘drill ready’ prospects.
Chief executive Simon Potter in a statement on Tuesday highlighted that the Uruguay opportunity opened up partly because of the turmoil in the broader industry, which has seen larger players slash investment and capital spending for new projects.
“The current period of introspection in our industry is presenting nimble, forward-thinking companies such as ourselves with compelling opportunities to expand our portfolio and achieve countercyclical growth,” Potter said.
“The recently-closed open licencing round in Uruguay presented exactly such an opportunity for…
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