Bahamas Petroleum: Awaiting news from Perseverance well


About the company

Bahamas Petroleum PLC (LON:BPC) is becoming a multi-asset ‘full cycle’ oil and gas firm, with assets in the Caribbean and South America.

In the Bahamas, it has five offshore licences covering four million acres and applications for a further five. The most advanced exploration prospect is Perseverance, a high impact prospect where drilling is underway.

In Uruguay, the OFF-1 licence covers a high-potential but early-stage area off the Atlantic coast.

Through an agreed takeover of Columbus Energy Resources PLC (LON:CERP) for £25mln Bahamas added production, appraisal/development, and exploration assets across Trinidad and Suriname.

BPC told investors that the combination will create a “Caribbean and Atlantic margin focused oil and gas champion”.

How it is doing

Perseverance-1 is a high-impact exploration well – high risk and high reward – targeting estimated potential resources in the range of 770mln to 1.4bn barrels.

The well will be drilled in the northern segment of the ‘B Structure’ to target some 770mln barrels of recoverable prospective resources, with the ‘upside case’ estimates potentially pitched twice as high.

The B Structure is seen across some 70-80 kilometres and could host up to multi-billion barrels of crude resources.

Elsewhere, newly acquired acreage in Uruguay is described as being directly analogous to the prolific Cretaceous turbidite discoveries that are currently being evaluated and developed further north, offshore Guyana and Suriname. BPC secured the project via a low-cost option.

BPC described the Columbus assets as entirely complementary.

The production base in Trinidad will allow the company to generate cash. It comes with opportunities to leverage a range of low-cost developments via workovers, reactivations and new wells targeting shallow reservoirs, and new wells targeting shallow reservoirs.

What the boss says, Simon Potter 

“We knew it would require capital to facilitate such a growth strategy, and, accordingly, we laid out a clear plan as to how we would secure that capital incrementally over time.

“Now, with drilling in The Bahamas well underway, and with a broad program of value-adding work about to kick off in Trinidad and Tobago and Suriname, we continue to draw on the various elements of the funding package we worked hard to put in place over the past 18 months.”

What brokers say: SP Angel

“If successful, Perseverance-1 would be transformational for the company, and indeed the frontier region in which it operates.”


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