Oil and gas exploration company Bahamas Petroleum Company announced on Friday that Simon Potter has agreed to a contract extension to his current employment contract, which expires on 31 March.

The AIM-traded firm said the contract extension was for 12 months on materially the same terms.

As it had previously announced, 90% of Simon Potter's compensation was deferred until a farmout is successfully concluded, to be repaid at that time in a 50% equal mix of cash and new ordinary shares.

The number of new ordinary shares accrued would be calculated as the value of salary forgone, divided by the volume weighted average closing price of the company's shares over each month.

Bahamas said that element of the contract extension was considered a related party transaction under the AIM Rules.

The independent directors of the firm, being those other than Simon Potter, said they considered the terms of that element of the contract extension to be "fair and reasonable" insofar as shareholders are concerned, having consulted with Strand Hanson.

"I am delighted to have extended Simon's contract and look forward to continuing to work with him in the months ahead," said non-executive chairman Bill Schrader.

Simon Potter, chief executive officer of Bahamas Petroleum Company, said he "looked forward" to continuing the company's efforts towards the finalisation of a partnership, "and progressing the execution of an exploration well in Bahamian waters, a goal I am heavily invested in and committed to."