24th Aug 2018 09:15
LONDON (Alliance News) - Oil and gas explorer Bahamas Petroleum Company PLC said Friday its exclusivity agreement with a major international oil company will terminate at the end of the month.
Shares in the company plummeted 69% to 2.35 pence on Friday after the news broke, the worst performer on the AIM.
The unnamed international company has notified Bahamas that it will not be extending the agreement, which has been in place since the start of May, past next Friday and will cease exclusivity payments.
Bahamas said it has recommenced broader asset-based discussions with third parties. These will continue alongside the ongoing non asset-based discussions which surround the funding of its first exploration well.
"The company with which we have been in exclusive negotiations has elected not to extend further the period of exclusivity...having demonstrated interest from an international oil major, we are now able to freely re-engage in discussions with all other parties," said Bahamas Chief Executive Simon Potter.
"Following receipt of USD1 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," Potter added.
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