Confidentiality & Exclusivity Agreement Extension

RNS Number : 8026V

Bahamas Petroleum Company PLC

26 July 2018

 

26 July 2018

Bahamas Petroleum Company plc

Extension of Confidentiality & Exclusivity Agreement

Bahamas Petroleum Company plc ("BPC" or the "Company"), the oil and gas exploration company with significant prospective resources in licences in The Commonwealth of The Bahamas is pleased to advise that the major international oil company (the "Counterparty") that entered into a confidentiality and exclusivity agreement with the Company, effective 1 May 2018 (the "Agreement"), has given notice of its election to extend the Agreement for a further month through to 1 September 2018.

The Agreement, for an initial period of 3 months, gave the Counterparty the option to extend the period of exclusivity on a month-by-month basis for up to an additional 3 months. BPC has already received cash payments totalling US$750,000 for the 3 months of exclusivity provided to-date, and will receive a further US$250,000 for the additional month of exclusivity pursuant to this current extension, with a further US$250,000 per month payable for any further extensions.

The terms of the Agreement (as extended) require BPC and the Counterparty to continue to work exclusively together to finalise a detailed technical evaluation of the Company's licences and seek to develop a commercial famework for a potential transaction. The work undertaken to date between both parties will therefore continue during the term of the current extension. Further, unless and until agreed otherwise, or a definitive commercial arrangement is agreed between both parties, the identity of the Counterparty will continue to remain confidential.

It is noted that despite entry into the Agreement and the current extension, no assurance can be provided that a commercial transaction will ultimately be concluded with the Counterparty, or on what terms, or in what timeframe. The Company will provide further updates as required. 

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

"The election to extend the period where BPC and the Counterparty are to work exclusivity together on technical and commercial matters for a further month, is a clear indication of continued progress in our efforts to conclude a transaction covering our highly prospective assets in The Bahamas. We will update the market of any material developments as and when appropriate, including any further extensions."

Ends

For further information, please contact:

Bahamas Petroleum Company plc Simon Potter, Chief Executive Officer	Tel: [phone]
Strand Hanson Limited - Nomad Rory Murphy / James Spinney	Tel: [phone]
Shore Capital Stockbrokers Limited Jerry Keen / Toby Gibbs	Tel: [phone]
CAMARCO Billy Clegg / Gordon Poole / James Crothers	Tel: [phone]

Notes to editors:

Bahamas Petroleum Company is an oil and gas exploration company with 100% owned offshore licences exclusively focused on The Commonwealth of The Bahamas. The Company has significant prospective resources, which have been de-risked through both extensive 2D and 3D seismic. The Company is intent on delivering safe and environmentally responsible exploration.

www.bpcplc.com

 

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