Shareholders pump another $9.75 mil. into oil company

Bahamas Petroleum Company (BPC) has officially changed its name to Challenger Energy Group Plc., the company announced yesterday, along with the successful closing of its open offer.

Trading in its shares on the AIM Market of the London Stock Exchange now commence under the ticker of “CEG”, the company revealed in a statement.

The company’s shareholders pumped another $3.72 million into the oil company by way of an open offer.

Challenger’s Chief Executive Officer-Designate Eytan Uliel said earlier this month that while the company had about $13 million in cash on hand, it needed more money and would seek to raise it through an open offer to shareholders first and by placing new shares on the London Stock Exchange.

The open offer closed with a successful 38.15 percent take up from existing shareholders through more than 750 million ordinary shares at 0.35 pence and the placing raised another $6 million through 1,216 million shares.

“Together, the placing and the previously announced successful open offer raised £6.9 million (US$9.75 million) before expenses. The placing shares to be issued will rank pari passu in all respects with the company’s existing ordinary shares and will represent approximately 15.4 percent of the company’s enlarged issued ordinary share capital, following admission of the placing shares,” Challenger noted yesterday.

“Gneiss Energy, the placing agent, has itself subscribed as principal for 235,714,285 placing shares as part of the placing. As part compensation for services provided under the fundraising, approximately 99.6 million unlisted warrants will be issued to subscribe for new ordinary shares at the placing price per share, valid for a period of 48 months.”

Trading on the placing shares and open offer shares are expected to begin on May 27. In a statement, Uliel said the company can now move on with its restructuring plans now that it has successfully reached its targeted funding.

“We are extremely pleased with the successful closing of our fundraising, in which we received strong support from existing shareholders in the open offer, as well as from new investors in the placing. With this fundraising behind us, we can continue the work of the corporate reset program we recently laid out, at the core of which is a clear focus on increasing production and cash flow from our onshore assets in Trinidad and Tobago and Suriname,” he said.

“The next milestone in this journey will be the imminent spud of the Saffron-2 appraisal well in Trinidad. The Saffron-2 well will be key to determining the producibility of the Saffron field and will define the shape of the potential development of that field over the next 6-12 months. I look forward to updating shareholders of our continuing progress.”

The company is currently awaiting approval for a three-year extension of its licenses from the Bahamas government.

Speaking to the name change and the restructuring of the company, Uliel said as Challenger, the company’s immediate strategic priority is to drive production and cash flow growth, through intelligent management and deployment of its resources.

“Our change of name and the broader corporate reset currently underway, is in support of this strategic priority, which we see as the lynchpin for shareholder value growth both in the near term and in the years ahead. All of us at the Challenger Energy look forward to beginning the next chapter,” he said.

Outgoing Chief Executive Officer Simon Potter will cease in the role effective May 27. Uliel was previously BPC’s commercial director.

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Paige McCartney

Paige joined The Nassau Guardian in 2010 as a television news reporter and anchor. She has covered countless political and social events that have impacted the lives of Bahamians and changed the trajectory of The Bahamas. Paige started working as a business reporter in August 2016. Education: Palm Beach Atlantic University in 2006 with a BA in Radio and Television News

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