Bahamas Petroleum Company (BPC) and Columbus Energy Resources have completed their merger, making BPC, a former oil exploration company, now a full-service oil and gas company with interests in The Bahamas, Suriname, Trinidad and Tobago and Uruguay.
A statement released by BPC on Friday revealed that the court-sanctioned merger scheme is complete.
BPC Chief Executive Officer Simon Potter said both companies bring value to the now merged company, which will continue to pursue oil exploration in The Bahamas in 2021.
Potter explained that both companies together are now more “financeable” and “valuable”.
“With the completion of the merger of BPC and Columbus, we today become a single company in pursuit of a single-minded vision: the creation of a revenue-generating, full-cycle, Atlantic margin exploration and production business,” Potter said.
“To achieve this vision we have a clear strategy, where we will apply a portfolio approach to asset ownership across the full life cycle of the hydrocarbons business, in a manner that appropriately balances risk and reward, ensures access to capital on competitive terms and effectively leverages our core expertise and experience.
“Going forward, BPC is an exploration and production business, intent on generating reliable, growing production cash flows capable of supporting exploration activities, and which together will create significant value for all stakeholders. The merger of the two companies allows each to provide something different from within that business cycle to the combined new company; each is providing what the other hitherto has not or does not have. Together the asset base is more robust, has broader interests and is, as a consequence, more financeable and thus more valuable.”
According to BPC’s statement, the merger scheme calls for 757,261,511 new BPC ordinary shares to go to holders of scheme shares; 5,160,305 new BPC ordinary shares to be issued to Columbus’ management as spelled out in their respective settlement and termination arrangements; and 106,466,976 new BPC shares “issued and allotted to Trafalgar Capital Management (HK) Limited pursuant to the replacement funding agreement, the proceeds of which will be used to settle the Lind convertible loan agreement”.
“A further issue of approximately 21 million new BPC ordinary shares and 17 million new BPC nil-cost options, pursuant to the Columbus executive salary options and as set out in Columbus’ scheme document; and 31 million new BPC ordinary shares to BPC’s advisors in relation to the merger, is expected to occur during the week commencing August 17, 2020, with the exact number to be finalized during the week commencing August 10, 2020,” the statement noted.
BPC was scheduled to drill an exploratory well, its first ever, in the southern Bahamas this year, but was forced to postpone due to COVID-19.
In June, the the company announced it won an offshore license to explore for oil in Uruguay.