TIDMBPC

RNS Number : 7772I

Bahamas Petroleum Company PLC

16 December 2020

16 December 2020

Bahamas Petroleum Company plc

("BPC" or the "Company")

Funding Agreements for up to US$20 million

Further to the announcement of 14 December 2020 (the "Announcement") of the Funding Agreements entered into by BPC, the Company wishes to advise of the following additional details pertaining to the Funding Agreements.

The counterparty to those Funding Agreements is 1798 Volantis Fund Ltd (the "Investor"), a fund managed on a discretionary basis by Lombard Odier Asset Management.

As set out in the Announcement, as part of the terms of the Funding Agreements, on the earlier of (i) 60 days after the date of spudding of BPC's Perseverance #1 well in The Bahamas; (ii) 31 December 2021; or (iii) such other date where a reconciliation is permitted under the Funding Agreement (the "Relevant Assessment Date"), BPC may be required to make a cash payment to the Investor to the extent that the Investor's aggregate return from a sale, if any, of those new ordinary shares has been less than 115% of the subscription price. BPC is only required to make a payment in the event the Investor sells shares for, in aggregate, an average price of less than 2.3 pence per share (being 115% of the subscription price), with the payment being the difference between 2.3 pence per share and the average sales price. No payment is required for any shares that the Investor continues to hold at the Relevant Assessment Date. On the basis that the Perseverance #1 well spuds on 20 December 2020, the Relevant Assessment Date would be 18 February 2021. There is no capacity for any such payment to be made in the form of shares, such that the level of dilution to BPC under the Funding Agreement is fixed and knowable.

This arrangement is substantially the same as the agreement entered into with Trafalgar Capital Management (HK) Limited, a Hong Kong based financier, for the financing of certain aspects of the Columbus merger transaction earlier in 2020. The final reconciliation date under that agreement has recently passed, and the ultimate outcome was one advantageous to BPC, in that there was no additional cost to BPC for funding that was secured at the time of the merger on advantageous terms.

Regulatory Statements

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

For further information, please contact:

 
     Bahamas Petroleum Company plc                Tel: +44 (0) 1624 
      Simon Potter, Chief Executive Officer        647 882 
 Strand Hanson Limited - Nomad                    Tel: +44 (0) 20 7409 
  Rory Murphy / James Spinney / Jack Botros        3494 
 Shore Capital Stockbrokers Limited -             Tel: +44 (0) 207 408 
  Joint Broker                                     4090 
  Jerry Keen / Toby Gibbs 
 Investec Bank Plc - Joint Broker                 Tel: +44 (0) 207 597 
  Chris Sim / Rahul Sharma                         5970 
 Gneiss Energy Limited - Financial Adviser        Tel: +44 (0) 20 3983 
  Jon Fitzpatrick / Paul Weidman / Doug            9263 
  Rycroft 
 CAMARCO                                          Tel: +44 (0) 020 3757 
  Billy Clegg / James Crothers / Hugo Liddy        4980

Notes to editors

BPC is a Caribbean and Atlantic margin focused oil and gas company, with a range of exploration, appraisal, development and production assets and licences, located offshore in the waters of The Bahamas and Uruguay, and onshore in Trinidad and Tobago, and Suriname. BPC is currently on-track for drilling an initial exploration well in The Bahamas, Perseverance #1, in late 2020 / early 2021, with the well targeting recoverable P(50) prospective oil resources of 0.77 billion barrels, with an upside of 1.44 billion barrels. In Trinidad and Tobago, BPC has five producing fields, two appraisal / development projects and a prospective exploration portfolio in the South West Peninsula. BPC's exploration licence in Uruguay is highly prospective, with a potential resource of 1 billion barrels of oil equivalent. In Suriname, BPC has an onshore appraisal / development project.

   BPC is listed on the AIM market of the London Stock Exchange.   www.bpcplc.com

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December 16, 2020 02:00 ET (07:00 GMT)

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