Bahamas Petroleum Company’s (BPC) shares took a 66 percent dive yesterday after the company announced in a statement that it had come up short of commercially viable quantities of oil at its Perseverance #1 test well in the southern Bahamas.
BPC stated it will turn its focus to the Caribbean assets it acquired through a merger last year with Columbus Energy Resources.
The company noted in its statement that its cash balance stands at $12.5 million. The funds will go toward satisfying outstanding payments related to the test well, to the ongoing work program in Trinidad and Tobago and Suriname and to general working capital purposes.
BPC also maintained in its announcement that despite the lack of success in finding commercial quantities of oil at the Perseverance #1 well, the company remains positioned to access further funding facilities.
“Completion of the Perseverance #1 well will trigger potential funding points under the company’s existing funding facilities, specifically 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 the investor under the facility announced by the company on December 14, 2020 to exercise a call option to subscribe for 187.5 million shares at 2p per share, which, if exercised, would see inflows of a further £3.75 million,” the statement noted.
“The company will be discussing with investors in the coming days and will advise shareholders accordingly of the outcome of those discussions.”
Last year BPC and Columbus Energy Resources completed a merger, making BPC a full-service oil and gas company with interests not only in The Bahamas, but also in Suriname, Trinidad and Tobago and Uruguay.
BPC Chief Executive Officer Simon Potter explained last year that the merger made both companies more “financeable” and “valuable”.
BPC noted as it pores over the information it gleaned from the Perseverance #1 well, it will review the company’s wider portfolio to ensure that it delivers “maximum value for the foreseeable future”.
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