Bahamas Petroleum Company (BPC)

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Offline cyberia

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Bahamas Petroleum Company (BPC)
« on: February 12, 2021, 04:20:14 PM »
Recently, BPC completed a drill which took over 10 years in the making. This drill encounter non commercial oil. Long-term holders are currently sitting on 70% losses. Others took a 70% plus hit and sold. The low price has encouraged new entrants determined to make gains from what appears to them oversold indicators.

The latest RNS can be found of which highlights are:

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BPC, the Caribbean and Atlantic margin focused oil and gas company, with production, appraisal, development, and exploration assets across the region, provides the following update on the drilling of its Perseverance #1 well in The Bahamas.



Highlights

· The Perseverance #1 well in The Bahamas has encountered hydrocarbons, successfully validated the structural model and the petroleum system, and drilled a majority of the potential reservoirs of interest, thus fulfilling the core technical objectives of the well

· Whilst the well encountered oil, indicated from LWD (Logging while drilling) tools, gas chromatography and mud logs, commercial volumes of oil have not been proven at this well location

· T he validation of a competent seal, good reservoir quality, charge and the presence of oil points to significant hydrocarbon potential remaining in various independent, untested play systems and structures within BPC's extensive acreage

· Drilling has now ceased, the well having reached a depth of approximately 3,900 meters without incident, and the well will now be permanently plugged and abandoned

· Over the coming weeks BPC will undertake a detailed evaluation of all technical information gathered during drilling. In this context, BPC will review the appropriate way forward for future monetisation of its business in The Bahamas, in particular with a view to renewal of a farm-in process

· Near term operational activity will now focus on the Company's 2021 work programme in Trinidad and Tobago and Suriname, targeting exit production of c.2,500 bopd and prospect maturation in Uruguay

This is what BPC stated in funding terms which was also released in RNS dated February 8th:

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Funding

As at commencement of abandonment of Perseverance #1, the Company's cash balance is $12.5 million. These funds held will be applied toward satisfying final payments relating to Perseverance #1 as the drilling programme is concluded, progressing the Company's work programs in Trinidad and Tobago and Suriname over coming months, and general working capital purposes.

Completion of the Perseverance #1 well will trigger potential funding points under the Company's existing funding facilities, specifically (i) the ability of the investors under the Company's conditional fixed-conversion price senior secured convertible loan notes financing facility to subscribe for up £12 million of additional notes (pre fees and expenses), and (ii) the investor under the facility announced by the Company on 14 December 2020 (as amended) to exercise a call option (the "Call") to subscribe for 187.5 million shares at 2p per share, which, if exercised, would see inflows of a further 3.75 million (pre fees and expenses). The Company will be discussing with both investors in the coming days and will advise shareholders accordingly of the outcome of those discussions.

It would seem to suggest they are still liquid.

They also seem to be hinting at partnerships (Farm-ins) to continue drilling in the Bahamas acreage.

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    The Company considers the results from Perseverance #1 - notably the confirmation of migrated oil within the Aptian reservoirs - will significantly reduce technical risk for any future/further exploration in this new frontier province. In particular, BPC considers that the results from Perseverance #1 may provide a strong technical basis for renewed farm-in discussions, with a view to future drilling at other target locations within BPC's licence areas.

BPC also seem to be hinting that they hold diversified assets from a recent merger (acquisition) with CERP. They seem to implying that they can increase production to 2500 bopd from 500 bopd by year ending 2021.

« Last Edit: February 12, 2021, 04:26:56 PM by cyberia »

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Re: Bahamas Petroleum Company (BPC)
« Reply #1 on: February 12, 2021, 04:31:17 PM »
Many investors/traders appear to be writing BPC off. However, this news report seems to indirectly indicate that the company is still a going concern.

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BPC will now focus its efforts on its oil prospects in the Caribbean as it analyzes results from the Bahamas test well.

https://thenassauguardian.com/bahamas-could-have-benefited-more-from-bpcs-35-mil-spend-on-well-says-companys-ceo/

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Bahamas Petroleum Company (BPC) does not necessarily need a farm-in agreement to continue exploring for oil in The Bahamas, Chief Executive Officer Simon Potter said yesterday, but he contended it is the normal process and it will reduce the uncertainty that comes with continued exploration at the unproven leases.

Potter, who made the remarks during an appearance on the radio talk show ‘The Revolution’ on Guardian Radio, said it will be some time before BPC knows whether it will continue its exploration, given that it has to pore over the data gleaned from its Perseverance #1 test well, present the data to the government and have the government renew the company’s exploration licenses, which expire in June.

Potter explained that the data will also either convince a company to join BPC in continued exploration in The Bahamas in a farm-in agreement, or choose to walk away from a deal.

Two possible partners have walked away from BPC in the past, but Potter said “it’s possible to move forward without a farm-in”.

https://thenassauguardian.com/potter-bpc-can-move-forward-without-farm-in-partner/

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Oil exploration opponents yesterday admitted they will have to halt their challenge to Bahamas Petroleum Company’s (BPC) drilling approvals if it succeeds with its $200,000 “security for costs” demand.

Joe Darville, executive chairman of Save the Bays, and secretary of Waterkeepers Bahamas, the two environmental groups behind the Judicial Review, conceded that they lack “sufficient liquid assets” to pay this sum should the Supreme Court grant BPC’s request

“I can confirm that if the security for costs application succeeds, this action will certainly have to be stayed because Waterkeepers Bahamas and Save the Bays will be unable to raise sufficient sums by that date to both fund its continuation of the action and provide a significant sum in security for costs.”

http://www.tribune242.com/news/2021/feb/11/oil-opponents-bpcs-200000-demand-will-knock-out-le/?news

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A Cabinet minister yesterday argued The Bahamas should seek "offsetting” compensation from neighbouring countries if it bows to their demands to give up oil exploration.

Romauld Ferreira, minister for housing and the environment, speaking in the House of Assembly after the Bahamas Petroleum Company (BPC) this week advised that its exploratory Perseverance One well did not find commercial oil quantities, addressed both the local and international lobbying against the project.

"A lot of different countries and states in the United States offered their opinion as to whether The Bahamas should continue with oil exploration, but I didn't hear any of them speak of offering offsets to our economy that would equate, or be the equivalent, to the value of what oil would contribute by funding," Mr Ferreira said.

http://www.tribune242.com/news/2021/feb/11/minister-give-us-offset-halt-oil-drilling-pursuit/?news

SimplyWall.st has it 97% discount to fair value.

It's very difficult to work out the fair value due to how to value the licensed extensive acreage held.
You can probably do it with CERP assets.

CERP had a market value of 1.85 before merger.

https://simplywall.st/stocks/gb/energy/aim-bpc/bahamas-petroleum-shares

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Re: Bahamas Petroleum Company (BPC)
« Reply #2 on: February 13, 2021, 07:45:29 PM »
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This January, the first exports of crude oil, a million barrels, shipped off from Guyana to the United States. The same month French oil major Total and the American Apache Corporation announced the discovery of a fourth major reserve in the waters of neighboring Suriname. British oil major BP and British-Dutch Shell also operate in the region.

BPC, a company of only six employees, is a relative newcomer. It has until now focused its attention on the Bahamas, but the setback has led the company to seek its fortunes elsewhere, at least for now.

“Near term operational activity will now focus on the Company’s 2021 work programme in Trinidad and Tobago and Suriname,” the BPC statement said.

https://news.mongabay.com/2021/02/as-bahamas-offshore-project-falls-flat-oil-driller-island-hops-across-caribbean/

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Re: Bahamas Petroleum Company (BPC)
« Reply #3 on: February 14, 2021, 09:43:57 AM »
Possible that an operations RNS update occurs soon, which might add clarity rather than having to search for news reports and recent local Radio interview reports.

Stena IceMAX has left the Perseverance 1 drill location and is languishing somewhere off the Florida coast.

https://www.vesselfinder.com/vessels/STENA-ICEMAX-IMO-9517575-MMSI-235092459

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Re: Bahamas Petroleum Company (BPC)
« Reply #4 on: February 15, 2021, 07:47:50 PM »
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As Trinidad and Tobago continue to explore for major oil and gas fields in the Caribbean region, the Bahamas Petroleum Co. has made a non-commercial oil discovery.

While Trinidad and Tobago have focused on natural gas for the last two decades, the country’s oil industry has been developing steadily. In 2020, the country’s third-largest oil producer Trinity Exploration & Production increased production by 7 percent to 3,226 bpd. This figure is expected to reach around 4,000 bpd by 2023.

Trinity Exploration & Production’s executive chairman, Bruce Dingwall, explained of Trinidad’s oil industry, “[There is a] huge reserve base and not many players and I think you’ll see some structural change in Trinidad over the next few years”.

In 2016, Trinidad and Tobago had 728 million barrels of proven crude oil reserves. With output levels of between 55-60,000 bpd throughout 2020, Trinidad managed to maintain its pre-pandemic levels of production during the industry’s difficult year.

As well as being the region’s biggest oil producer, Trinidad and Tobago is home to the largest natural gas processing facilities in the Western Hemisphere. In 2014, Trinidad was the sixth-largest global exporter of natural gas, following 15 years of heavy investment in the sector.

The Caribbean region has great oil potential going into 2021 as recent discoveries in Suriname and Guyana demonstrate the untapped potential of the region. Majors are starting to show greater interest in the Caribbean as production costs could be as low as $30 to $40 a barrel.


https://www.reportdoor.com/is-the-caribbean-ready-for-an-oil-boom/

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Re: Bahamas Petroleum Company (BPC)
« Reply #5 on: February 15, 2021, 11:01:11 PM »
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The Bahamas “cannot afford” to ignore commercial oil discoveries within its territory, an ex-Central Bank governor argued yesterday, while pleading for far greater government transparency on the issue.

Julian Francis, describing oil exploration as “a two-edged sword”, said he both understood and “identified” with opponents of Bahamas Petroleum Company’s (BPC) recent exploratory drilling activities due to fears about the risk it poses to an ocean environment that sustains much of the country’s existing economy.

However, he told Tribune Business that the economic and fiscal devastation inflicted by COVID-19 meant The Bahamas cannot “deprive itself” of a potential multi-million dollar revenue windfall that could benefit the Public Treasury and Bahamian people alike.

The former governor also suggested that successive administrations had stored up trouble for themselves by being less than fully transparent about the process involved in issuing BPC’s licences, their commercial terms and subsequent environmental and other approvals granted to facilitate its Perseverance One exploratory well.

http://www.tribune242.com/news/2021/feb/15/bahamas-cant-afford-ignore-oil-discovery/

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Re: Bahamas Petroleum Company (BPC)
« Reply #6 on: February 15, 2021, 11:05:48 PM »
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Oil exploration opponents are persisting with their Judicial Review challenge in a bid to “draw a line in the sand they will not back away from” over future drilling activities, a prominent QC is warning.

Fred Smith QC, the Callenders & Co attorney and partner, who is representing Save the Bays and Waterkeepers Bahamas in their fight over the permits and approvals granted to Bahamas Petroleum Company (BPC), said the latter’s Perseverance One exploratory well could be just the first of several intended to be drilled within Bahamian territorial waters.

http://www.tribune242.com/news/2021/feb/15/oil-opponents-seek-draw-line-sand/

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Re: Bahamas Petroleum Company (BPC)
« Reply #7 on: February 16, 2021, 08:28:58 AM »
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Bahamas Petroleum Co
Corporate and Strategic Update
RNS Number : 2243P
Bahamas Petroleum Company PLC
16 February 2021




Highlights

· The drilling of Perseverance #1 fulfilled its core technical objectives and a post-well review is underway. In parallel, BPC is considering the most appropriate way forward for monetisation of its assets in The Bahamas, in particular, the renewal of an active farm-out process

· Near term operational activity is now focussing on the Company's 2021 work programme in Trinidad and Tobago and Suriname, targeting exit production of c.2,500 bopd, and prospect maturation in Uruguay

o Saffron appraisal well due to begin in Q1 2021 which, subject to results, would see BPC seek approvals for field development with up to seven production wells to follow through 2021

o Suriname appraisal well and Extended Well Test in the Weg Naar Zee Block due to also begin in Q1 2021

· The Company's funding strategy is to focus on consolidating and strengthening the balance sheet, in support of directing maximum effort toward planned value-adding drilling activities in Trinidad and Tobago and Suriname during 2021

· Consistent with this funding strategy, the conditional convertible note facility has been restructured and extended along with a further £2 million drawn, a final reconciliation of the initial £7.5m tranche of the December 2020 Funding Agreement has occurred requiring no net cash payment by the Company, and the Company has issued 135 million new ordinary shares in lieu of cash settlement of a number of current financial obligations

 

Simon Potter, CEO of BPC said:

 

"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. Notwithstanding it is only a week since the completion of the Perseverance #1 well, 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 the Company will fully close out the Perseverance #1 operation and set the final timetable for operations elsewhere across the portfolio."


https://www.investegate.co.uk/bahamas-petroleum-co--bpc-/rns/corporate-and-strategic-update/202102160700032243P/

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Re: Bahamas Petroleum Company (BPC)
« Reply #8 on: February 16, 2021, 02:04:59 PM »
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Bahamas Petroleum eyes new catalysts in Trinidad and Suriname

Drilling will start on the Saffron appraisal well in Trinidad, which could potentially unlock a value-rich follow on campaign of up to seven production wells this year.

Elsewhere, in Suriname, the company intends to drill an appraisal well and carry-out an extended well test at the Weg Naar Zee block.

In The Bahamas, a post well review is underway and the company said it is now considering the most appropriate way forward for monetisation, particularly in regard to a possible renewal of a farm-out process.



BPC added it has restructured and extended its convertible note facility along with a fresh £2mln drawdown and has reconciled the initial £7.5mln tranche of the December 2020 funding agreement without needing a net cash payment. It has also issued 135mln new shares in lieu of cash settlement of certain financial obligations.



https://www.proactiveinvestors.co.uk/companies/news/941384/bahamas-petroleum-eyes-new-catalysts-in-trinidad-and-suriname-941384.html

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Re: Bahamas Petroleum Company (BPC)
« Reply #9 on: February 16, 2021, 05:27:34 PM »
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The immediate anticipated cost of planned activities in Trinidad & Tobago and Suriname for the rest of the first half of this year is approximately USD4 million. The company currently has around USD15 million in cash

https://www.lse.co.uk/news/bahamas-petroleum-makes-progress-at-perseverance-solidifies-funding-2p7c8343glcwzu3.html?cmpredirect


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Re: Bahamas Petroleum Company (BPC)
« Reply #10 on: February 17, 2021, 10:07:59 PM »
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Oil explorer hints not giving up on Bahamas yet


• Says surge in ‘farm-in’ inquiries after well’s end
• Data obtained invaluable for four other licences

The Bahamas Petroleum Company (BPC) yesterday alarmed environmental activists by indicating it has not given up on The Bahamas following a surge in interest from potential joint venture partners.

Casuarina McKinney, the Bahamas Reef Environment Educational Foundation (BREEF) executive director, told Tribune Business she was “very concerned” after the oil explorer informed the international capital markets it had received numerous inquiries despite its failure to locate commercial oil quantities with the Perseverance One well.

BPC, in a statement that left the door open to further exploratory oil drilling in its other four Bahamian licence fields, added that the data gleaned from the well dug in waters some 90 miles west of Andros will “more accurately inform and direct” its future plans in this nation.

http://www.tribune242.com/news/2021/feb/17/activists-alarmed-over-rise-bpc-jv-interest/


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Although the well did not prove commercial oil volumes, it did confirm the presence of a working hydrocarbon system, validating the company's structural play concept.

The well also verified the presence of seals, high-porosity reservoir and hydrocarbon charge, all of which point to hydrocarbon potential in various independent, untested play systems and structures seismically identified from 2D and 3D within the licenses, BPC said.

Since announcing the result, the company has received approaches from various parties in the industry and has engaged Gneiss Energy to help attract broader industry interest in a farm-in to the company’s four southern offshore exploration licenses.

https://www.offshore-mag.com/regional-reports/latin-america/article/14197745/bpc-details-goals-of-offshore-bahamas-well-review
« Last Edit: February 17, 2021, 10:14:13 PM by cyberia »

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Re: Bahamas Petroleum Company (BPC)
« Reply #11 on: February 25, 2021, 10:39:14 AM »
Share discussion forums generally debating current bopd production targets.

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More wise to be a pessimist with all the destruction in shareholder value over the years with LGO/CERP and almost insanely rapid with BPC P1.

I would be cautious in paying heed to ADVFN & LSE discussion forums. The former seems like the wild west whilst that latter is a pure rampers paradise.  Think many people have lost money due to ramps on LSE discussion forums which seems to encourage averaging down or topping up. So, if you are generally involved in what analyst have described as a suckers stock (BPC falls into that definition), the LSE discussion forum is guaranteed to get you sucked in to your own detriment.



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Thu, 7th Jan 2021 07:00
RNS Number : 8466K
Bahamas Petroleum Company PLC
07 January 2021



Achieved production target of 500 bopd by end of 2020; end 2021 target remains at 2,500 bopd

1. Goal: Apply focussed technical work and expertise to build to a baseline of 500 bopd production by year end 2020, as an initial stepping stone toward ramping up to the production target of 2,500 bopd or more by year end 2021

 

Delivered: Peak daily production of 500 bopd was achieved during the month of December 2020, based upon a dedicated work program that saw a 15% uplift in daily offtake rates across November and December and production rates consistently >10% higher than pre-merger production rates earlier in 2020. The increased production over the last 6-8 weeks of 2020 has been the result of:

· Stabilised offtake rates from base production assets

- Specific workovers to remove wellbore damage undertaken on eight wells

· Delivery of the planned increased workover frequency rate (0.57 workovers per day post-merger, up from 0.39 pre-merger)

- A total of 35 workovers were completed in the period bringing the annual total to 152 completed workovers (a level not achieved since before 2018)

· Perforation of new oil producing zones in two existing wells


The above is how they described the 500 bopd as a baseline. Then later on as a peak. Again the RNS from BPC tends to be fuzzy.

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Re: Bahamas Petroleum Company (BPC)
« Reply #12 on: February 26, 2021, 05:41:46 PM »

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Re: Bahamas Petroleum Company (BPC)
« Reply #13 on: February 27, 2021, 08:14:13 AM »
Beware about rumours on takeovers or farmin on the LSE forum by certain ramping posters.
« Last Edit: February 27, 2021, 11:09:13 AM by Admin »

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Re: Bahamas Petroleum Company (BPC)
« Reply #14 on: March 01, 2021, 01:37:43 PM »
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    Saffron 2 would be drilled as a twin to Saffron 1, from the same drill pad, and would target the Lower Cruse intervals encountered in drilling Saffron 1, with a targeted total depth of 4557 feet.

    It said the key objective of Saffron 2 was an extended production test, and subsequent conversion to a production well aimed to produce the circa 40-degree API oil encountered in Saffron 1.




    “.... a follow up to the Saffron 1 well drilled earlier this year,” said executive chairman Leo Koot.

    “Saffron 2 will be a twin to Saffron 1 and target the same Lower Cruse intervals where we discovered light, high quality oil from two test intervals.

    “The logging of Saffron 1 showed over 300 feet of high-quality sands so we are very excited to test and appraise these sands with Saffron 2.”

    Koot said ...

https://www.sharecast.com/news/aim-bulletin/columbus-energy-submits-drilling-application-for-saffron-2--7520832.html