25th Mar 2020 13:29
(Alliance News) - Bahamas Petroleum Co PLC has once again postponed drilling of the Perseverance #1 well in the Bahamas, it said on Wednesday.
Shares fell 16% on Wednesday in London in afternoon trade to a price of 1.31 pence each.
The company earlier in March delayed the drilling until May or early June, having initially planned to do so in April.
However, due to the "massive, unprecedented" spread of Covid-19, it will not be safe to begin work in the new timeframe so drilling has been pushed back to October at the earliest.
Chief Executive Simon Potter said: "I know this will be disappointing for shareholders, as it is for management and the board alike, given all the progress we have thus far made toward drilling of the Perseverance #1 well, but as a prudent operator, we need to assess the risks objectively and act appropriately.
"Shareholders should be encouraged, however, that we are in a strong position to resume drilling activities toward the end of 2020, compared to where we were just a year ago. The company has cash reserves, and financial backers intent on flexibly supporting the company. We have a robust drill plan that has been risk-assessed and reviewed by insurers and contractors alike, a range of long-lead and critical path items have already been purchased and will be warehoused ready for immediate redeployment, and the rig market is changing rapidly such that there will likely be a surfeit of capable rigs towards the end of this year in a competitive price environment."
"We also have an approved environmental authorisation from the government of the Bahamas, farm-in discussions remain on foot, and the current crisis is presenting a number of interesting alternative opportunities for us," Potter continued.
"Moreover, the company's prospect has not changed: the same rocks will still be there at such time as safe and responsible operations can resume."
By George Collard; [email protected]
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