BAHAMAS PETROLEUM (BPC) – paradise found ?

by Michael on July 18, 2011

Bahamas Petroleum Company Plc (“BPC”) (AIM: BPC) is an AIM listed oil and gas company based in the Isle of Man. BPC holds 100% interest, through wholly owned subsidiaries, in five Exploration Licences granted by the Government of The Commonwealth of The Bahamas.

Based on BPC’s interpretation of pre-existing seismic data, 36 leads have been identified as being potentially capable of trapping hydrocarbons and have been selected for further investigation.

BPC acquired new seismic in June 2010, the results of which have been promising. BPC is currently soliciting bids for additional close-spaced 2D seismic over selected structures in the awarded licences.
Bahamas Petroleum surged 1 pence (7 percent) in early trading today to reach 14.75 pence. The company currently has a market cap of £181.5 million.

BPC called the CPR (Competent persons report) report an “endorsement of the significant oil potential of our licence area” and confirmed that its four licenses in the Bahamas have “significant” oil potential.

The CPR was  prepared by consultants Ryder Scott covered four structures over Bahamas’ wholly owned Bain, Cooper and Donaldson licences. Ryder said that each of these structures have more than 500 million barrels in unrisked recoverable prospective resources (EUR), while three of them have an unrisked EUR of over 1 billion barrels.

The report concluded that the total mean EUR could top 4 billion barrels of oil equivalent, with the chance of success ranging from 9 percent to 35 percent across the structures.

Bahamas Petroleum noted that the report dealt only with the Cretaceous reservoirs and believes that the incremental Tertiary and Jurassic reservoirs could hold as much if not more oil.

“The Ryder Scott report provides the first resource evaluation of the southern fold belt and, for that matter, in The Bahamas. We are extremely pleased with the results of the report and look forward to continuing our exploration programme,” said chief executive of Bahamas Petroleum Paul Crevello.

The company is currently undertaking a 3D seismic programme over its four southern licences, with more than 40 percent of the survey completed. The 3D data will help locate potential drill sites and define the potential of the Jurassic and Tertiary reservoirs.

Hopefullythe seabed survey and 3D results will provide more uplift for the share price – my short-term target is 30pence. There were falls following the uncertainties in the licences but now these have been put to bed I think we shall return to previous levels. In 6-12 months we should be considerably higher.

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