The Bahamas Petroleum Company (BPC) will have a drill rig in Bahamian waters by March, in preparation to drill its first well in its search for oil in The Bahamas, according to a notice on the company’s website.
BPC Chief Executive Officer Simon Potter said in the notice that the company notified its deepwater drilling contractor, Seadrill, of its intention of receiving a rig in the first quarter of 2020.
He added that BPC is currently working with Seadrill on the long-form rig contract in preparation for drilling.
The notice also reveals that BPC is preparing to raise money through additional share offerings, giving its existing shareholders first preference in purchasing those shares.
BPC has noted that the cost of the well could be between $25 million and $50 million.
“I am pleased to advise shareholders of continued progress toward drilling an initial exploratory well in The Bahamas during 2020,” Potter said in the notice.
“A farm-out remains our preferred funding option and constructive discussions continue.
“At the same time, we are moving forward with additional components of a balanced funding strategy, so that we can deliver on drilling regardless of the outcome of these discussions.
“This includes giving our existing shareholders the first opportunity to participate in our next fundraising via an open offer.”
According to the notice, BPC has proposed a £7 million or US$8.5 million open offer to its shareholders at two pence per share.
“We have also signed the subscription agreement for our previously announced convertible note facility and we have received a number of other funding proposals,” the notice states.
“Entry into a subscription agreement for the previously announced £10.25 million (US$12.5 million) conditional convertible notes and farm-out discussions continue.”
The company hopes to have an exploratory well drilled before July and thinks the rock structures beneath The Bahamas have the potential for four billion barrels of oil.
BPC has already secured the services of renowned oil field services company Halliburton to provide equipment and a drilling plan.
The company is obligated under its licensing agreement with the government to drill an exploratory well in its licensed area in the southern Bahamas before the end of 2020.
If the company is forced to extend its licensing agreement, it would be required to relinquish 50 percent of the southern license area.