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Bahamas Petroleum shares jump as it secures exploration licences

Published: 19:32 22 Feb 2019 AEDT

oil and gas operations
BPC shares were up 25%

Bahamas Petroleum Company plc (LON:BPC) shares shot up 25% in Friday’s early deals after it told investors that it has extended its exploration licence out until 31 December 2020.

It secures the company’s four southern licences in the territorial waters of The Bahamas.

The company, in a statement, said that its work obligation in the new licence period is “to safely implement an environmentally responsible exploratory well”. Subject to exploration results, at the end of the exploration period the company will have the right to apply for a production lease over all or part of the company.

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In the coming months, the company and the Bahamian authorities will agree to the details of the forward work programme for 2019 and 2020.

The company also highlighted that it continues to advance a farm-out process to secure an exploration partner.

"The confirmation from the Government of the Bahamas that the current term of our four southern licences extends to 31 December 2020 provides the company with a certainty of tenure over the company's licences, replacing any perceived ‘above ground’ issues with complete clarity in fact and law,” said Simon Potter, BPC chief executive.

“This position has been arrived at following extensive government consultation and whilst this has taken the company a while to establish, there is now a very clear two-year window to advance plans for and to drill an exploratory well providing certainty to potential partners as we move forward in our farm-out discussions.

“Today's news will add considerable impetus to this process.”

BPC shares rose 0.33p or 25.49% changing hands at 1.6p.

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on 11/9/15