- Bahamas Petroleum says a number of measures relating to board/executive compensation and the company's option plan are to be implemented, as initially announced in the 2015 final results released on 21 March.

These measures are designed to better align the interests of board and senior management with shareholders, and to enable adequate time, through the preservation of cash reserves, for the executive team to deliver the investment required to commence an exploration well in the company's southern licences.

From 1 April, the following payment deferrals will take effect:

- 90% of chief executive Simon Potter's compensation will be deferred until a farm-out is successfully concluded, to be repaid at that time in a 50% equal mix of cash and shares

- 50% of board fees will be deferred until a farm-out is successfully concluded, to be repaid in shares at that time

The number of shares to be calculated remains on the same basis as the existing 20% fee deferral agreement for directors, which has been effective since 1 October 2014, namely that the number of ordinary shares accruing shall be calculated as the value of fees/salary forgone divided by the volume weighted average closing price of the company shares over each month.

These deferrals are designed to preserve cash, supporting the company's short term balance sheet while the company pursues a farm-out transaction.

In addition to representing a material and immediate fee sacrifice on the part of the Board and senior management, the deferrals will also provide a significant incentive to key members of the executive team to deliver a farm-out transaction in the shortest possible time-frame.

From today and in the subsequent weeks all existing options or share entitlements will be cancelled, surrendered or are expected to otherwise expire unexercised.

At 9:36am: [LON:BPC] Bahamas Petroleum Company PLC share price was +0.04p at 2.06p

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