22nd Feb 2019 08:56
LONDON (Alliance News) - Bahamas Petroleum Co PLC shares spiked Friday as the oil and gas explorer has received notification from the government of the Bahamas its exploration period has been extended to the end of 2020.
Bahamas Petroleum was trading 20% higher in morning trading at 1.53 pence a share.
The company has been seeking clarification on its four licenses after disruptions "outside the company's control" interrupted progress since 2015.
"The confirmation from the government of the Bahamas the current term of our four southern licences extends to December 2020 provides the company with a certainty of tenure over the company's licences, replacing any perceived 'above ground' issues with complete clarity in fact and law," said Chief Executive Simon Potter.
"This position has been arrived at following extensive government consultation and whilst this has taken the company a while to establish, there is now a very clear two-year window to advance plans for and to drill an exploratory well providing certainty to potential partners as we move forward in our farm-out discussions."
Bahamas Petroleum said its obligation during this current exploration period is to implement an exploratory well. The company will then have the option to apply for a production lease or extend the exploration licence for a third time.
The company will agree a forward programme for 2019 and 2020 with the government in the coming months and settle any fees dispute for the period of disruption.
Bahamas Petroleum said its discussions to secure a farm-in partner for the initial exploration well "with multiple third parties" are ongoing.
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