TIDMBPC
RNS Number : 9555S
Bahamas Petroleum Company PLC
15 March 2019
15 March 2019
Bahamas Petroleum Company plc ("BPC" or the "Company")
Placing to raise US$2.5 million
Bahamas Petroleum Company plc, the oil and gas exploration
company with a significant prospective resource in licences in The
Commonwealth of The Bahamas ("The Bahamas"), is pleased to announce
that it has raised US$2.54 million before expenses through a firm
placing of 120,000,000 new ordinary shares of 0.002p each
("Ordinary Shares") (the "Placing Shares") at a price of 1.6p each
(the "Placing").
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 (the "Licences").
-- 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.
Placing Summary
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 ("Admission").
Total Voting Rights
Following the Admission, the Company's issued share capital will
consist of 1,692,719,096 Ordinary Shares, with each Ordinary Share
carrying the right to one vote. The Company does not hold any
Ordinary Shares in treasury. This figure of 1,692,719,096 Ordinary
Shares may therefore be used by shareholders in the Company, as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change in their
interest in, the share capital of the Company under the FCA's
Disclosure Guidance and Transparency Rules ("DTRs").
Working Capital
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. Refer to Note 1 below
for additional details in relation to working capital.
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."
Ends
For further information, please contact:
Bahamas Petroleum Company plc Tel: +44 (0) 1624 647
Simon Potter, Chief Executive Officer 882
Strand Hanson Limited - Nomad Tel: +44 (0) 20 7409
Rory Murphy / James Spinney 3494
Shore Capital Stockbrokers Limited - Broker Tel: +44 (0) 207 408
Jerry Keen / Toby Gibbs 4090
CAMARCO Tel: +44 (0) 20 3757
Billy Clegg / James Crothers 4983
Note 1: Additional Details in relation to Working Capital
In relation to working capital, as announced on 22 February 2019
the Company has received formal notification from the Government of
The Bahamas (the "Government") that the term of the second
exploration period of the Licences is extended until 31 December
2020.
During this extension, the Company and the Government must, in
the coming months:
(i) establish a forward process and schedule for 2019 and 2020
for the consideration and finalisation of the Environmental
Authorisation previously submitted by the Company in April 2018, in
accordance with the relevant Act and Regulations, and
(ii) determine any additional licence fees that may be payable
by the Company up to the end of 2020, when reconciled against:
a. Licence fees amount previously paid in good faith by the
Company (approximately US$1.05 million) despite the inability to
undertake Licence activities,
b. Licence fee levels previously established with the Government
(being US$250,000 per Licence per annum) as may be modified in view
of changed industry circumstances since Licence fee levels were
initially proposed in 2013 under very different then prevailing
circumstances,
c. Periods in which Licence activities were unable to be
undertaken owing to various disruptions beyond the control or
discretion of the Company, and during which Licence fees were
correspondingly abated, and
d. Other amounts presently held on account by the Government in relation to various other matters (approximately US$620,000).
(Note: these items have previously been identified in the
relevant Company annual accounts in the periods 2012 - 2018).
In 2018 the Company submitted to the Government a proposed
reconciliation in respect of all of the above items, which
indicated a balance payment due to the Government of approximately
US$200,000 for Licence fees up to the end of 2020.
This amount, along with consideration of various sensitivities,
has been taken into account in determining the adequacy of working
capital for the next 12 months.
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END
IOECKQDQBBKBDND
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