First exploration well to be drilled in Bahamas next year

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Bahamas Petroleum Company (BPC) has entered into a series of agreements as part of a coordinated approach toward drilling its first exploration well in The Bahamas in 2020.

The company has entered into a framework agreement with Seadrill, one of the world’s largest offshore drill rig companies, for the provision of a sixth-generation drilling rig. The Framework Agreement sets out key commercial parameters, fixes a day rate, and specifies a time slot for delivery of the rig in the first half of 2020 with the ability to extend the drilling campaign to a concurrent two-well program, should funding permit.

It has appointed leading international contractor, Halliburton, as integrated well services provider and BakerHughes GE has been appointed to provide a range of well-related equipment.

BPC said the revised estimate of initial exploration well cost came down to between US$25 – US$30 million

“Following our licences being extended to the end of 2020 by the Government of The Bahamas earlier this year, rapid progress has been made across our business. Today we are pleased to update shareholders on a series of coordinated steps that the Company has taken toward drilling of an initial exploration well during 2020, consistent with our licence obligations,” Simon Potter, Chief Executive Officer of Bahamas Petroleum Company, said.

Potter said this includes a framework agreement for a rig, appointments for essential well services with leading global oil services companies, as well as considerable progress on financial arrangements to fund the drilling, whether that be via a farm-in on acceptable terms, or by other means, whichever is in the best interests of the Company.

BPC continues to proactively pursue a farm-in as its primary financing strategy, and farm-in discussions are continuing with multiple parties.