Bahamas Petroleum Share Discussion Threads

[novice2006] 11/10/2019 10:12

Excellent interview with all the right questions. Nice to hear confirmation from the horses mouth. Thanks for sharing the link.

[specialist protector] 11/10/2019 10:02

NEXT RNS in my view : WE ONLY MANAGED TO RAISE GBP500K SO TO REWARD OUR SHAREHOLDERS WE OFFER DOUBLE THE SHARES TO THEM NOW AT 1p�

hahaha

[linton78] 11/10/2019 10:00

Nice mention of the shorters being caught out......

BPC video now out

[dynamohum] 11/10/2019 09:58

Competition time . . . . .

What will the next RNS say . . . . . .

[specialist protector] 11/10/2019 09:55

Yes they are. Like thebMUG in LSE says any one who is out of the money here should average down in the open offer ie throw bad money after bad. What mugs. Bankruptcy coming in my view.

[computercoders] 11/10/2019 09:51

So some mug on here has down ticked a post of mine which states points out the blatant cheek of 2 RNSs within a week of each other...one saying no placing intended, another saying open offer ffs. Are you actually that thick?

[dynamohum] 11/10/2019 09:39

By my estimate Potter has received about 7million (UK pounds) in renumeration since he was appointed CEO . . . . .

He has also learned how to scuba dive, enjoyed tax free status, get a belting suntan
accumulated loads of air miles and now is planning his retirement . . . .

[specialist protector] 11/10/2019 09:37

Goodbye Bahamas. Goodbye.

[specialist protector] 11/10/2019 09:36

Probably would not even get a chance to drill now.

[specialist protector] 11/10/2019 09:36

Why why why sit they screw it up this badly?

[specialist protector] 11/10/2019 09:36

I think 1.85-1.95 is telling us all we need to know. 2p open offer is obviously in trouble given the price for the stock in the market.

[specialist protector] 11/10/2019 09:34

This is a disaster in my view. Mug central is about to die 😢

[jbt2007] 11/10/2019 09:34

Or how about "Simon says"...

[specialist protector] 11/10/2019 09:33

Bankruptcy is the only option in my view and I think the market is already telling us that.

[specialist protector] 11/10/2019 09:32

Bid at 1.85p. No one will pay for 2. No money to drill in my view.

[linton78] 11/10/2019 09:32

From LSE - ( jamins )


The price of success or possible entry to the 87p of which ever party is 2p.

If you assume the open offer is the only source of financing for the drill (which is appears to be at this moment in time) the share price is now largely irrelevant. THE DRILL NEEDS TO BE FINANCED.

What is the point of buying BPC shares in the market at 1.7p, 1.5p or 1.0p if the open offer is not fully taken up. Those �cheap� shares will potentially be worthless. THE OPEN OFFER NEEDS TO BE TAKEN UP TO FINANCE THE DRILL.

Those with a very low average can average up and still leave space to breath, others who are well underwater need to subscribe to have a chance of coming out of the other side of this with something

By financing this drill you will at worse reduce your losses during the drill, but potentially make money...

If you don�t buy through the open offer, the chance of loosing everything increases dramatically.

I don�t like the term, but the saying speculate to accumulate does apply here.

Also remember the clock is ticking on licences!!!!

Best,

[specialist protector] 11/10/2019 09:32

The stock is going under in my view. We will see in a few weeks time.

[specialist protector] 11/10/2019 09:31

Because there are still some MUGS around.

[computercoders] 11/10/2019 09:24

Can't see why anyone would invest in this after last week's RNS stating they have no intention of placing then this week them doing an open offer. It's a shocker.

[jbt2007] 11/10/2019 09:21

Let's play a game of "simple Simon"...

[linton78] 11/10/2019 09:10

In an update on Thursday, BPC announced a proposed a �7 million (c. $8.5 million) open offer at a price of 2 pence per share to enable all existing shareholders to participate in the companys next fundraising.

The company said it had developed a drilling schedule to target an initial exploration well in 1H 2020.

Following an announcement in August 2019 it had entered into a framework agreement with Seadrill, setting the terms for the potential use of Seadrill�s drilling rig for the first exploration well in the Bahamas in 2020, BPC said it had sent notice to Seadrill nominating rig delivery date (and expected well spud) for late 1Q 2020.

The framework agreement required BPC, on or before October 11, 2019, to notify Seadrill that it wishes to Go-Firm. Given the greater certainty and progress made in relation to funding, the company has thus now advised Seadrill that it wishes to Go-Firm on the provision of a drilling rig.

Accordingly, the company has notified Seadrill of its desire to secure a rig for an intended spud date in late 1Q 2020. Over the coming weeks the company and Seadrill will be working to finalize the rig contract, confirm the rig selection, and agree the critical drilling plan dates.

BPC noted that the governing document in relation to provision of the drill rig would be the rig contract, which remains to be entered into and is subject to Seadrills board approval process for contract commitment.

Simon Potter, Chief Executive Officer of Bahamas Petroleum Company, said: �I am pleased to advise shareholders of continued progress toward drilling an initial exploration well in The Bahamas during 2020. A farm-out remains our preferred funding option, and constructive discussions continue. At the same time, we are moving forward with additional components of a balanced funding strategy, so that we can deliver on drilling regardless of the outcome of these discussions. This includes giving our existing shareholders the first opportunity to participate in our next fundraising via an open offer.

We have also signed the subscription agreement for our previously announced convertible note facility, and we have received a number of other funding proposals. Given the progress made in relation to our funding strategy, we have notified Seadrill of our desire to receive a rig in late 1Q 2020, and we are now working collaboratively with Seadrill on both finalizing the long-form rig contract and preparing for drilling.



BPC expects to raise $20 million

The company has a clear and unambiguous obligation under its licenses to drill an initial exploration well in The Bahamas during 2020. Discharge of this obligation will then allow the company to enter the next exploration period, running for a further three years, and in the event of commerciality seek a 30 year production lease that would allow for a commercial development of any discovered reserves.

Over the last six months, the company has revised its drilling costs estimates to incorporate contracted pricing from service and equipment providers, and also to reflect a well design and drilling philosophy that will comply with the requirements of the companys licenses whilst at the same time enable a full evaluation of the target structures. Accordingly, the company currently estimates a cost to meet its drilling objectives in the range of $20 million $25 million.

The company currently has sufficient cash available to meet general working capital needs through to 2H 2020. Over and above these general working capital needs, it is necessary for the company to develop a degree of certainty as to the availability and timing of funding for drilling costs, primarily in order to enable the company to nominate, confirm and proceed to a definitive contract for the rig, and also to ensure other aspects required to start drilling, such as the procurement of long-lead items, provisioning and ancillary equipment, are available.

However, the bulk of the company�s expected cash outflows, and thus the company�s actual need for funding availability (outside of working capital), will generally only arise shortly before and during the course of drilling (thus late Q1 2020 and beyond).

It is in this context that that board has determined to proceed, in the first instance, with a proposed �7 million (approximately $8.5 million) open offer to existing shareholders at 2 pence per share with any entitlements not taken up by qualifying shareholders sought to be placed with investors.

At the same time, the company has entered into a subscription agreement for the previously announced and approved �10.25 million (approximately $12.5 million) conditional convertible loan facility.

In aggregate, therefore, the open offer and the conditional convertible notes would raise an aggregate amount of approximately $21 million, which exceeds the lower-end estimates for the total well-cost.



Still seeking partner



As previously announced, the companys farm-out process continues, with a number of parties engaged in ongoing discussions, due diligence and/or commercial interaction. It remains the companys preference to secure funding through this structure, albeit the companys attitude to potential farm-in terms in ongoing negotiations will necessarily reflect the funding status of the initial well at the time a farm-out is successfully concluded (if at all).

To the extent that a farm-out is successfully concluded on terms acceptable to the company, the amount of capital available to the company would materially increase, and as previously noted could be materially additive to the funds raised through the open offer and conditional convertible notes.

Such funding could be applied towards all or a considerable portion of the costs in respect of the intended drilling, or alternatively proceeds from any farm-out could be applied to a broader work program than the current single well the company intends to drill in 2020.

[specialist protector] 11/10/2019 09:05

Some poor dreamers in LSE like Bonum going bank in all likelihood in my view.