Bahamas Petroleum Company (BPC) now expects to begin drilling its test well in April at the location called Perseverance #1, where there could be an economy-changing two billion barrels of oil, according to the company’s latest statement, which also contended that the potential of the drilling site makes The Bahamas the premier prospecting site for 2020.
BPC’s Chief Executive Officer Simon Potter said in the statement that the company is in the “final stages” of readiness to spud its first well.
“Perseverance #1 has the potential to open a world-class, new frontier basin offshore, less than 200 miles from the world’s largest hydrocarbon market/infrastructure,” Potter said.
“In our view this makes Perseverance one of the premier prospects that could be drilled globally this year, with the potential to not only fundamentally alter the status of BPC in the market, but to also transform the revenue generating capacity of the Bahamian economy.”
BPC originally targeted March as its start month for drilling this year, but the statement revealed that the company is still awaiting the approval of its environmental authorization document, the finalization of the procurement of drilling supplies and the receipt of the fund of a convertible loan note.
“The company is on track to drill Perseverance #1 – the company’s initial exploration well in The Bahamas – and deliver the well results during Q2 2020,” the statement noted.
“Perseverance #1, which is 100 percent owned and operated by BPC, is to be located in the northern segment of the B megastructure. The target P50 prospective recoverable oil resource at this location is 0.767 billion barrels, with an upside of 1.444 billion barrels (assuming the same recovery factor) and downside volumes approximating to the minimum economic field size at currently prevailing oil prices.
“Over the past months, the company has been working to finalize the process of rig selection and contracting with Seadrill and to advance contracting for other services, including the master services agreement with Halliburton for integrated downhole services and various other equipment required for the drilling campaign.
“Physical inspection of the proposed rig is scheduled to occur shortly, while it is in port for class certification. The company expects to be in a position to finalize and enter into the definitive contract for the rig in the coming weeks. The deadline for the satisfaction or waiver of all conditions precedent in relation to the £10.25m conditional convertible loan note extended to March 9, 2020,” the statement pointed out.
“Over the past several months, the company has also progressed discussions with the government of The Bahamas and submitted required documents consistent with its application for environmental authorization in accordance with the timetable agreed with the government and its advisers. BPC remains confident of receiving appropriate approval in a time frame consistent with the company’s intended drilling campaign.”
BPC said it will be drilling in waters in the southern Bahamas that are almost 1,700 feet deep, drilling its well to a depth of 15,800 feet.
The company has also set up field offices in Houston, Texas to supplement its Bahamas office.
The statement added that safety and environmental management systems have been put in place.
“BPC’s incident response systems and procedures will be tested/verified prior to commencement of the well by OSRL (Oil Spill Response Limited), the company’s contracted response specialists, through the organization of an extensive desktop exercise simulating an incident requiring an emergency response,” the statement noted.
“This exercise will include BPC management and operating staff, the rig operations team, domestic Bahamian authorities and multiple invited governmental agencies from across the region.”