Bahamas Petroleum shares plunge after ‘oil major’ pulls out of talks

Bahamas Petroleum, the oil and gas exploration company with significant prospective resources in licences in The Commonwealth of The Bahamas has advised that it has received notice from the major international oil company that entered into an exclusivity agreement with the Company, effective 1 May 2018 that it will not further extend the exclusive nature of negotiations beyond 31 August 2018.

Bahamas Petroleum in conjunction with its adviser Macquarie Bank, has therefore recommenced broader, asset-based discussions with third parties in addition to those non-asset based financing discussions already ongoing for the funding of its first exploration well. To-date the Company has received US$1 million in exclusivity payments. No further amounts will be due or payable given the exclusivity will not be extended.

Simon Potter, Chief Executive Officer of Bahamas Petroleum Company, said:

“Appetite for “frontier” exploration has improved as the industry cycle has turned and the Company continues to move forward with farm-out and financing options, working closely with our adviser Macquarie.

“The company with which we have been in exclusive negotiations has elected not to extend further the period of exclusivity, which means we will receive no further exclusivity payments. At the same time, having demonstrated interest from an international oil major, we are now able to freely re-engage in discussions with all other parties, which had previously been put in abeyance.

“Following receipt of US$1 million in exclusivity payments under the Agreement and the raising of additional finance through the placing of shares in May 2018 the Company remains adequately funded to continue developing well financing options through to completion.  We will provide the market with further updates when appropriate.”

Source: Proactive Investors