Bahamas Petroleum Companyaims to begin drilling activity in the Caribbean this year whilst searching for a technical partner to share in the “world class” multi-billion barrel potential of the region.
The company said it is partnering discussions with numerous parties, including majors and large independent oil companies.
Despite a tumbling oil price, BPC believes the “world-class scale and robust economics” of its assets continue to attract attention and it hopes to conclude a successful partnership deal this year.
BPC’s contracted licence obligation to the Government of The Bahamas is to commence a first exploration well on the southern licence areas by April 2017.
A proposed exploration well was redesigned and the optimum location re-examined, which coupled with significant reductions to rig, contractor and services rates has allowed the company to target an obligation well cost of $50 million to $60 million, a significant reduction on previous estimates.
BPC ended 2015 with approximately $5.5million of cash – enough to continue funding overhead requirements through the farm-out and well planning phase, it said in a statement.
Chief executive Simon Potter, said: “With our southern licences extended into their second exploration term and the lengthy process of passing the new regulatory regime now behind us, BPC starts 2016 in a strong position to advance what we believe is potentially a multi-billion barrel petroleum resource that is world class in terms of its scale, economic potential, location and operating environment.”
“Our shareholders have been pleased to see the decisive actions of The Government of The Bahamas during 2015, first in renewing our licences, and then in passing of the new Petroleum Bill and associated regulations. We believe this recognises the nation-building potential of our nascent industry, in terms of skills development, job creation, direct investment, production royalties, and long-term wealth creation.”