Bahamas Petroleum Company plc, the oil and gas exploration company with a significant prospective resource in licences in The Commonwealth of The Bahamas, has raised US$2.54 million before expenses through a firm placing of 120,000,000 new ordinary shares of 0.002p each at a price of 1.6p each.
Highlights of the Placing:
- Placing to raise gross proceeds of US$2.54 million through the issue of 120,000,000 Placing Shares at a price of 1.6p each.
- Proceeds of the Placing will be used to fund the Company as it seeks to secure a farm-in partner to finance an initial exploratory well on the Company's four southern licences in The Bahamas.
- BPC is confident of being able to attract a farm-in partner now its licences have been extended to 31 December 2020.
- Discussions are ongoing with a number of potential farm-in partners.
The Placing will raise, in aggregate, $2.544 million before expenses through the placing of, in aggregate, 120,000,000 new Ordinary Shares at a price of 1.6p per share (the "Placing"). The Placing Shares to be issued will rank pari passu in all respects with the Company's existing Ordinary Shares and will represent approximately 7.1per cent. of the Company's enlarged issued ordinary share capital, following admission of the Placing Shares. 7.2 million unlisted warrants to subscribe for new Ordinary Shares at the Placing Price per share for a period of 24 months from the earlier of the business day following passing of the relevant resolutions at the Company's next AGM or 1 January 2020, are to be issued to Shore Capital as part compensation for services provided under the Placing.
Application will be made for the 120,000,000 Placing Shares to be admitted to trading on the AIM market of the London Stock Exchange ("AIM") and it is expected that admission will take place and trading in the Placing Shares will commence from 8:00am on 22 March 2019.
The directors consider that the proceeds of the placing, together with the Company's existing financial resources will provide sufficient working capital for its currently anticipated requirements for at least the next 12 months.
Simon Potter, Chief Executive Officer commented:
"Our focus at Bahamas Petroleum remains clear and unwavering: to drill an initial exploration well on our highly prospective acreage in The Bahamas.
Now more than ever, we believe that the ingredients for success are present. We have a world-class drill-ready asset, with multi-billion barrel potential as certified by third parties. We have a robust technical case, as endorsed by the interest to-date of potential partners. The Bahamian regulatory regime is fully enacted, and we have a clear licence term through to the end of 2020, thus providing potential farm out partners with clarity as to tenure, term, schedule and operating environment. Now, with today's placing, we have secured the funds needed as we continue to seek a farm-out agreement, and thereafter move forward to drilling of the initial exploration well and realising the offshore potential in The Bahamas.
I would like to thank existing and new shareholders for their continued support and I look forward to updating them on further progress in due course."