Oil explorer Bahamas Petroleum (BPC:AIM) has updated the market on the rest of its portfolio in the wake of its failure to find commercial quantities of oil with a long-anticipated well offshore The Bahamas.
The shares are flat today at 0.58p to languish more than 80% below the highs they set in the run up to the ultimately disappointing drilling effort which was revealed in early February (8 Feb). The focus here is to bring in a partner to fund further activity.
Today’s announcement looks to switch the focus to its assets in Trinidad and Tobago and Suriname. The company plans to drill an appraisal well, Saffron #2, in Trinidad starting in May with plans for production drilling to boost output to between 1,000 to 1,500 barrels of oil per day (bopd) by the end of 2021. The company also plans an appraisal well in Suriname in July 2021.
LOOKING TO GENERATE ‘SIGNIFICANT CASH FLOW’
Ultimately the company hopes to get group production up to 2,500 bopd across the portfolio which CEO Simon Potter says could ‘generate significant cash flow’ on a ‘conservative oil price estimate’.
Craig Howie, analyst at house broker Shore Capital, comments: ‘BPC reports today that it is progressing technical and commercial due diligence on potential production acquisition targets in Trinidad and Tobago and (alongside forthcoming drilling) we see this as being a possible source of exciting news flow in due course.
‘Following today’s update, which demonstrates that BPC is continuing to make strong operational progress with its active programme onshore Trinidad and Suriname, we continue to see excellent potential for drilling catalysts, reserves additions and production growth.’
