Bahamas Petroleum Company PLC Statement re Potential Fundraising (5873O)
October 03 2019 - 02:00AM
UK Regulatory
TIDMBPC
RNS Number : 5873O
Bahamas Petroleum Company PLC
03 October 2019
3 October 2019
Bahamas Petroleum Company plc
("Bahamas Petroleum" or the "Company")
Statement re Potential Fundraising
Bahamas Petroleum, the oil and gas exploration company with
significant prospective resources in licences in The Commonwealth
of The Bahamas, notes the latest movements in the Company's share
price and continued speculation pertaining to an imminent potential
fundraising transaction by way of an equity placing to
institutional investors. The Company wishes to confirm that it has
no immediate intentions of undertaking an equity placing to
institutional investors.
As stated in various announcements in August and September 2019,
the company has multiple funding options available to it to fund
the exploration well intended to be drilled in H1 2020, which will
provide shareholders with exploration exposure to risked resources
between 0.4 and 1.2 billion barrels of oil, with a potential upside
in the targeted structure that has been independently assessed at
close to 4 billion barrels of oil.
The Company has consistently stated that it will work in a
coordinated way toward selection of a financing package that the
Board considers to be in the best interests of the Company and its
shareholders. To this end, at the Company's AGM on 17 September
2019 shareholders passed a number of special resolutions designed
to provide the Board with the flexibility to enter into a range of
possible funding arrangements to secure the funding for the initial
exploration well, including the approval of a conditional
convertible loan note agreement for the provision of GBP10.25m
($12.5m) in well finance.
In this context, in recent days the Company has met with a
number of potential institutional investors as it considers its
funding strategy. However, the Board considers that the current
share price of the Company materially undervalues the project, and
thus raising equity by way of a private placing to institutional
investors at or below the current share price would not compare
favourably with other options presently being considered by the
Company, and would thus not represent the best value proposition
for the Company's shareholders.
The Company continues to actively evaluate a range of funding
options, and active farm-in discussions continue. The Company
remains confident it will implement a suitable financing package
which will provide access to funding as and when required for
drilling and drilling related activities, and which linked to the
provision of a rig and access to integrated well services from a
collaboration of major international companies will enable drilling
to commence as intended in H1 2020.
The Company will make further announcements as appropriate in
due course.
For further information, please contact:
Bahamas Petroleum Company plc Tel: +44 (0) 1624
Simon Potter, Chief Executive Officer 647 883
Strand Hanson Limited - Nomad Tel: +44 (0) 20
Rory Murphy / James Spinney 7409 3494
Shore Capital Stockbrokers Limited Tel: +44 (0) 207
Jerry Keen / Toby Gibbs 408 4090
CAMARCO Tel: +44 (0) 20
Billy Clegg / James Crothers 3757 4983
www.bpcplc.com
This information is provided by RNS, the news service of the
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Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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