Bahamas Petroleum Share Discussion Threads

[zxie] 16/4/2021 14:46

https://www.proactiveinvestors.co.uk/companies/amp/news/945180?__twitter_impression=true

[deltalo] 16/4/2021 14:10

12bn isn't invested here, just trolling. Hope seller's thank him in a month's time.

[donaferentes] 16/4/2021 13:59

A lit of serious sells going through 4 X 500k No wonder they dropped the bid. Is there an overhang expected to be cleared or just someone deciding enough's enough. Maybe it's 12bn bailing!

[deltalo] 16/4/2021 13:56

Your jumping to conclusions just like 12bn, The company has spent 150m in the Bahamas so a farm-out will materialize from the valuable data that's now gatherd by the survey's and technical data from p#1, also we have to remember the license is 80 Kilometres long so there's a large area to be discovered, and we've only drilled one well. A huge area of oil is potentially still there to be discovered with other parts of the structures other closers and also there's a deep Jurassic deep water clastic play that the company wants to tap into. So there's no question that the company will renew the license with no problems in June so really now it's all eyes on Saffron #2. We already know the oil is there and the potential revenue from just the appraisal well, Let's wait and see what comes of this well as I expect the high end of bpd and the estimate may be reserved, As for fund well the company has 13m cash in Bank and another 14 available if required and the current 80 wells that are currently producing revenue, also we have two "owned" rig- overs to maximize current production and sweep other reserve's, Revenue from Saffron #2 is key here short term and if pulled off we'll see a massive uplift in a share price that's underpinned by current production levels in Trinidad. Do what you like, but I'll keep buying up stock, thank you seller's and 12bn :-)

[milanista11] 16/4/2021 13:02

Not very probable they lose the court case. But if the government comes under pressure from the environmentalists they revoke the permit to BPC and pay some compensation. I see this as the most successful exit strategy for BPC: to monetize the fear of an ecologic catastrophy or the fear for the consequences to break a legal contract by the government of the Bahamas.

[arrynillson] 16/4/2021 12:32

12bn - re your post 54014 those that follow the company know that was an Exploratory well and the main target was the deeper zone that the driller had difficulties with - those geological issues they grappled with were the stimulus for the offer to drill Saffron 2 FOR FREE 12bn. Whether Saffron 1 is still producing or what it produced from the shallower zone is the sort of information only a mug would suggest is relevant 12bn!

[linton78] 16/4/2021 12:06

You better get back to ramping TXP Prozac.

I can see it slipping under a quid again.

[pro_s2009] 16/4/2021 11:33

One wonders if "losing" the court case now offers an "easy way out" of not having to drill another duster in the Bahamas ?

[martyn9] 16/4/2021 10:52

Just read the article pro linked on the other thread, the farce continues!!

[deltalo] 16/4/2021 10:26

Simon Potter has already said he intends to renew the license for a third term, So in June it will be renewed, I've already seen the article on LSE an hour ago. News that we already know. Thanks anyway.

[12bn] 16/4/2021 10:21

Its recent pronouncements have indicated it will only drill a second exploratory well in The Bahamas if it secures such a partner to share the technical, financial and operational risk./////// So Perseverance2 may never get drilled either it seems.

[12bn] 16/4/2021 10:20

Thanks Pro-S2009,here is your article for those who cannot be bothered to click on your link,which does work fine.////////By NEIL HARTNELL

#Tribune Business Editor

#[e-mail]

#A prominent QC yesterday argued that Bahamas Petroleum Company (BPC) will itself benefit from the legal challenge to its permits being cleared to proceed to a full Supreme Court trial.

#Fred Smith QC, the Callenders & Co attorney and partner, told Tribune Business that the outcome of the Judicial Review action launched by his environmental activist clients will aid the oil explorer in its search for joint venture partners by clarifying precisely what approvals are required for any future exploratory wells drilled in Bahamian waters.

#He spoke out after this newspaper learned BPC has dropped its opposition to allowing Save the Bays and Waterkeepers Bahamas extra time to set-up the bank account that will hold the $200,000 “security for costs”, which will cover the oil explorer’s legal fees if the activists are unsuccessful as ordered by the Supreme Court.

#BPC and its attorneys, Graham, Thompson & Company, had initially proven uncooperative in extending the March 30, 2021, deadline for the $200,000 facility to be in place even though the activists had raised the necessary funds in time, but Mr Smith yesterday confirmed they had relented and reversed their stance.

#“The [activist] coalition and BPC are working at setting up a joint account for the $200,000 security for costs, and hopefully when that is done - it takes time, unfortunately because it’s very difficult to conduct business in a rationale way in The Bahamas - we will be able to go on with the trial when we convene for the parties to go back before the court and ask for directions,” Mr Smith said.

#BPC’s revised position has both eliminated the need for a Supreme Court hearing on whether to grant Mr Smith’s clients extra time to put the “security for costs” facility in place, and removed all potential obstacles to a trial on the merits and substantive issues raised by their Judicial Review challenge.

#Mr Smith yesterday argued that it was “extremely important” that the Supreme Court determine whether the Government had followed its own approval processes, and if BPC obtained all the required permits, even though drilling for the latter’s Perseverance One exploratory well had concluded in mid-February with no commercial oil quantities discovered.

#With the oil explorer having indicated it will apply to extend its four southern Bahamas exploration licences for another three-year term, with plans to seek a joint venture partner and drill a second exploratory well in Bahamian waters, he added that it was critical to clarify the regulatory regime for all interested parties - BPC and its potential partner; the Government; other oil explorers; and the public.

#“The trial of this Judicial Review remains extremely important even though they [BPC] have finished drilling because it will settle the law on what are the obligations of the Government and oil explorers to be transparent in their dealings with the public, what laws and regulations do in fact apply, and what permits oil explorers at every stage must lawfully obtain,” Mr Smith said.

#“Given the continued expressed intent of BPC and possibly others - we just don’t know because the Government’s information base is locked in a Fort Knox-obsessive mindset - to continue drilling for oil, and the value of our environment and the fact it is a limited resource that can be destroyed in many different ways and different locations overnight, the outcome of this trial will provide a foundational basis for oil exploration permitting going forward.”

#Mr Smith said among the issues that the Supreme Court needs to determine are whether exploratory oil wells require site plan approval under the Planning and Subdivisions Act; if they also need excavation permits under the Conservation and Protection of the Physical Landscape of The Bahamas Act; and the application of local laws and international treaties to prevent pollution at sea.

#He added that other issues included whether the newly-enacted Environmental Planning and Protection Act applies to exploratory oil wells, or if it is just the Petroleum Act and accompanying regulations. “There’s a whole slew of laws and regulations that the court needs to pronounce on,” the outspoken QC told this newspaper.

#“The benefit of a Judicial Review is that it clarifies the law for the Government, the developer, civil society and the public, and that’s why these actions are not supposed to descend into trench warfare on procedural issues. Again and again the courts have said to move quickly to deal with the merits as they are matters in which everybody benefits from judicial clarification of the law.

#“There is no sense in stringing this case out for four to five years while other exploration is going on. Otherwise it becomes fraught with extremely high costs and obstruction which is to the detriment of developers and the public. It baffles me why the Government always digs its heels in and tries to prevent the quick determination by the courts dealing with Judicial Reviews.”

#Mr Smith argued that BPC, and its plans to secure a joint venture partner for a second exploratory well, would also benefit from the Supreme Court providing regulatory clarity. “Investors would generally prefer to know what the law is rather than have constant Judicial Review challenges over whether there was public consultation or not, and whether this or that Act applies or not,” he said.

#“It only creates confusion and chaos in the investor environment. Investors don’t want to come here and be sued. They want to come here and do business. Judicial Reviews provide a very effective mechanism for helping the investment climate if not resisted so prematurely.”

#Simon Potter, BPC’s chief executive, recently said the company’s total spend on its activities in The Bahamas had hit $150m as he affirmed its continuing interest in this nation and plan to apply for a renewal of its licences into a third exploration period.

#The renewal application, for licences that are set to expire at end-June, was supposed to be submitted by end-March 2021 although the Government has yet to confirm whether it has received such submissions.

#A successful renewal will give BPC the chance to earn a return on its $150m investment by “monetising221; the value of these licences through securing a joint venture or farm-in partner. Its recent pronouncements have indicated it will only drill a second exploratory well in The Bahamas if it secures such a partner to share the technical, financial and operational risk.

[12bn] 16/4/2021 10:02

Even Saffron 2 is only 'expected' to be drilled starting in mid-May. It also looks like the company may delay or cancel the rest of the drilling programme. You need to try and understand the companys weasel words deltalo.

[12bn] 16/4/2021 09:59

Those Perseverance #1 costs remaining to be paid (noting that some items are being disputed or negotiated by the Company), along with the Company's anticipated but discretionary 2021 work programs in Trinidad and Tobago and Suriname (as announced by the Company on 18 March 2021), renewal of the Company's Bahamas licences, and the Company's 2021 overheads, will require a total estimated spend over the balance of 2021 and into 2022 of between $25 million and $40 million. However, the eventual actual spend will ultimately be dependent on a number of factors, many of which are at the Company's discretion - for example, the extent and timing of future development drilling at the Saffron project, which in turn is dependent on the outcome of the drilling of Saffron #2, expected to commence in mid-May 2021.

[12bn] 16/4/2021 09:54

Final Perseverance #1 drilling cost expected to be approx. $45 million compared to pre-drill estimate of approx. $35 million; additional costs of approx. $10 million incurred as a result of heightened Covid-19 procedures (approx. $3 million) and side-tracking operations related to mechanical debris in the well (approx. $7 million)

-- Formal contract execution for Off -1 block in Uruguay expected 2Q 2021; independent technical work undertaken by Uruguayan national oil company ANCAP indicates a P(50) estimated ultimate recovery volume (EUR) of 1.34 billion barrels at the Lenteja prospect

-- Cash on hand of approx. $13 million (as at 1 March 2021, including unconditionally committed convertible notes); anticipated additional capital requirement in 2021/22 across the business of $25 - $40 million, the Company expects to more than cover the difference from various potential funding sources///////// $25m-$40m needed is a way of mentioning DILUTION and we don't know how much actual spare cash BPC has as all the bills for Perseverance1 haven't been settled yet, I have cut n pasted part of the relevant RNS for you to read deltalo.

[12bn] 16/4/2021 09:48

deltalo16 Apr '21 - 08:38 - 54018 of 54019
0 3 0
It's 50 percent of what the company is already producing and that will be from just one well, another 5-9 well will be drilled this year.
This Sp is only valued at the current reduction levels./////// The current share price values BPC at £29m but the company is a loss maker so there is a lot of HOPE in the share price and future production wishes. How will the company fund another 5-9 wells,will they use bottle tops? DILUTION that is how.

[martyn9] 16/4/2021 09:27

Surely the JR case with the bahamas govt can't be ongoing? very bizarre the bod has not informed shareholders the position regarding the case??

[deltalo] 16/4/2021 08:43

Come back in a month's time and see where the share price is, as the company has cash in Bank, NO MENTION OF ANY FUTURE DILUTION,That's just your opinion. Let's wait for the Saffron#2 results then. What more can we say.

[deltalo] 16/4/2021 08:38

It's 50 percent of what the company is already producing and that will be from just one well, another 5-9 well will be drilled this year. This Sp is only valued at the current reduction levels. So I expect at least 50 percent increase in the share price as the drilling start's. But Saffron #2 isn't all we have is it.

[12bn] 16/4/2021 08:29

MMs only paying 0.5525p now,my guess is the bid will drop to 0.50p soon.

[12bn] 16/4/2021 08:27

Why would anyone pile in here if Saffron2 produces a mere 200-300 bopd deltalo? That will change little as BPC will still be loss making and in need of cash. The biggest concern here is a BIG DISCOUNTED placing/rights issue/VC 'death finance'.

[deltalo] 16/4/2021 08:17

So if it does produce good volume as I expect it to, then we should see the investors that doubt the well like yourself pile in here.We shall soon see.

[12bn] 16/4/2021 08:05

No guarantees that Saffron 2 will produce even 200-300 bopd,it may or may not. How much oil does Saffron1 produce? NIL,ZERO,NONE. The only thing guaranteed here is BPC will be raising cash from DILUTION at some point.//////////Total work program funding required is estimated to be approx. US$25-$40m,