- Bahamas Petroleum said it had entered into a series of agreements as part of a coordinated approach toward drilling its first exploration well in The Bahamas in the first half of 2020.

The company struck agreements on several steps to initiate exploration, including a framework agreement for a rig, appointments for essential well services with global oil services companies, as well as considerable progress on financial arrangements to fund the drilling.

The company entered into an agreement with Seadrill for a sixth-generation drilling rig, and appointed contractor Halliburton, as an integrated well services provider. BakerHughes GE was appointed to provide a range of well-related equipment.

The company's estimates of initial exploration well cost were revised lower to a range of US$25 to US$30m, or less than US$50m for a concurrent two-well campaign if funding permitted, the company said.

The company also reached a conditional agreement for a convertible loan investment of £10.25m, approximately half the anticipated cost of a single well.

Proposals were received for other financing alternatives, and farm-out discussions continued, the company added.

The company said it would called a general meeting, slated for 17 September 2019, to approve a several developments, including the convertible note investment and a proposals to expand share issuance.

At 8:37am: [LON:BPC] Bahamas Petroleum Company PLC share price was +0.51p at 2.11p

Story provided by