Bahamas Petroleum Share Discussion Threads

[whoppy] 17/11/2020 16:25

It's a case of proving up the asset and not selling cheap. Sure a major would love to be drilling a multi billion prospect in the Bahamas with 28B upside potential. The thing is, it doesn't belong to them and BPC were not going to accept a poor offer.

[bigsi2] 17/11/2020 16:24

Succeeded rather

[pro_s2009] 17/11/2020 16:23

In todays climate......with nobody looking to develop expensive offshore.......will not be any buyers around.

How did the farm out process go for BPC ? Nobody is interested. You cannot sell what other people do not want to buy...........

[bigsi2] 17/11/2020 16:22

Essentially a pointless RNSalways preceded by a drop -As hype sold into

[whoppy] 17/11/2020 16:21

As I say, full development in the Bahamas of any oil is not going to be done by BPC. It will be a major that will do this work. It may involve BPC retaining a stake, but more likely an immediate sale of the asset and licences for a major to develop on their own. BPC walk away with £1b+ in cash and repeat the process in Uruguay. That's how management roll at BPC. Look at Dart and Arrow for their track record. All sold for multi billions of $$'s, It's all been done before. It's nothing new.

[dipla] 17/11/2020 16:20

Didn't expect a drop like this today.......

[bigsi2] 17/11/2020 16:16

As I said .... large sell orders

[pro_s2009] 17/11/2020 16:13

Not really.

FPSO would cost around 800 million US dollars. Cost to first oil would likely be around 2,000 million dollars.

So where does BPC get this 2 billion dollars ? Convertible Loan Notes ? LOL :)

They will try to farm out, very unlikely to get any interest in this climate. Its why BPC have always failed to get a farm out.......the cost to develop any find is so great, that its just not worth pursuing, unless BPC offload around 80% of the license area for peanuts to a major. And the major would then just sit on it...keep it as something that could be used in future, if the oil price goes over 100$.

Offshore is now just not "relevant" for AIM small companies.

You need low cost Onshore gas or low cost Onshore oil.........simple and cheap to develop with a very high IRR.

[whoppy] 17/11/2020 16:06

It's a perfect time to drill and develop offshore, due to the low rig rates for drilling and associated service providers. This makes any large discovery even more attractive due to the low cost environment.

[pro_s2009] 17/11/2020 16:03

These exchanges are good though whoppy.

This is how bulletin boards should work.........discuss the positives and negatives, you try to talk me into buying.......I will state my reasons why not.........it acts as a good debate which leaves no stones unturned........and allows decisions made on good judgement of the real situation.

As it stands, I still say in the current climate a market cap of 130m is high.....and lots of hope valued in. RKH being the proof of what happens to big offshore discoveries in the middle of nowhere at the best of times.......let alone when oil is now no longer hot and all the majors are slashing costs.

[pro_s2009] 17/11/2020 15:59

Exxon already are producing there, the infrastructure is in place.....costs are sunk. This makes new discoveries cheap and lower cost to bring on line......so they will continue with Guyana and Suriname.

Zero production in the Bahamas.......everything needs to be put in place.....massive cost........which means in the current climate.......nobody will be interested.

[whoppy] 17/11/2020 15:53

Lol, better go and tell Exxon in Guyana to stop wasting their time and money then.

[pro_s2009] 17/11/2020 15:51

And why was nobody interested apart from PMO ?

RKH did a good deal, at the time, with higher oil prices. It only turned bad when PMO started to hold things up.

Trouble is now....... new offshore oil is now bottom of the "new investment" pile for majors.

They want low cost onshore gas, low cost onshore oil, green energy......thats the 3 big drivers. This is 2020, times have changed.

Its sad for BPC.....had they drilled this well 5 years ago things would have been different, but now.........times have changed.

[whoppy] 17/11/2020 15:44

That is because RKH did a farmout with Premier Oil, who were heavily in debt and could not carry out the development of Sealion. Unfortunately, RKH did a bad deal with a bad partner and have suffered ever since.

[martyn9] 17/11/2020 15:44

More buys than sells and share price being held back artificially !!

[pro_s2009] 17/11/2020 15:34

Your dreaming................ask RKH how their development is going.......... got their FPSO yet ? Nope.

If its all so simple......why are RKH still struggling over a decade later...... you need to ascertain reality and stop living in fantasy.

[the3for2] 17/11/2020 15:32

I see someone left the playpen gate open again

[whoppy] 17/11/2020 15:22

BPC not as interested in production. A sale of the asset is most likely to one of the majors that doesn't have a Guyana FPSO operation. Or, a farmout on massive terms between a major and BPC. As is the case, the next 12 months, the phone will be ringing off the wall. Being on the doorstep of the US, the biggest market is but a stones throw away. The oil will be sold off the back of the boat with no transport costs to market. All costs to a refinery etc will be borne by the purchaser of the oil. Combined with a generous royalty from the Bahamas, the profitability for a discovery is massive.

[pro_s2009] 17/11/2020 15:15

Whoppy, where is the infrastructure to develop ?

Zero......would mean an FPSO needed.

Same as RKH need for Sea Lion. And RKH market cap is now 27m.

Why is RKH (with proven oil) at 27m market cap and BPC (no oil) is at 130m market cap ?

When you work that out, you can work out the cost needed to develop an isolated discovery in the middle of the sea.

[alasparavolar] 17/11/2020 15:14

Crikey Ugly. If it keeps going down like this we will be back at 2.35. I guess you were right to sell at that the other week. Maximising profits and all that.

[jcgswims] 17/11/2020 15:02

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[specialist protector] 17/11/2020 14:55

Bid up again. BUY BUY BUY.