BPC’s locally incorporated mutual fund ready for trading
Bahamas Petroleum Company (BPC) has finalized all administrative formalities related to its locally incorporated mutual fund, the shares of which could begin trading on the Alternative Investment Market (AIM) of the London Stock Exchange as early as today, the company revealed in a statement.
According to the company, the effects of the novel coronavirus (COVID-19) pandemic delayed the processes of the BPC Investment Fund Limited, which will now be issued 35,337,328 ordinary shares in the oil exploration company.
“Application has been made for the fund shares to be admitted to trading on the AIM market of the London Stock Exchange with an expectation that admission will take place and trading in the fund shares will commence on or around June 29, 2020,” BPC stated.
“As previously announced, under the terms of the fund going forward, month-end valuations will be undertaken. At each of these valuation dates, the fund may utilize net subscription proceeds to either purchase additional shares in BPC on the open market or, at the company’s discretion, subscribe for new ordinary shares in the company at the then prevailing market price.”
Chief Executive Officer of BPC Simon Potter said the company has wanted to include Bahamian investment for a long time, but especially as the company prepares to drill its first well in the southern Bahamas.
“Facilitating the capability for Bahamians to invest in our nationally significant project has long been an ambition of the company,” said Potter.
“This objective was realized with the creation of a Bahamian domiciled investment fund back in January. Understandably, various administrative processes had been difficult to complete owing to the impact of COVID-19, but with those now resolved, formal admission of the shares is expected shortly and I am delighted to see this project finally coming to fruition, whereby Bahamians can choose, albeit indirectly, to participate in the outcome of the project.
“As I have discussed in recent days, we are operationally ready to begin the drilling of the Perseverance #1 well, targeting 0.77 billion barrels of oil. With the signing of an unconditional rig contract, the company has confirmed a specific window between December 15, 2020 and February 1, 2021 in which drilling will commence. We eagerly await the start of this drilling program and I look forward to updating shareholders on our progress in the near future.”
Leno Corporate Services Limited, the fund advisor, helped the company to raise almost $1 million this year.
BPC announced this month that it and Columbus Energy Resources, an international oil and gas exploration, development and production company headquartered in London, have agreed to the terms of a recommended all-share merger by way of a share-for-share exchange, which would transform BPC into a full-cycle exploration and production company.