Bahamas Petroleum Company Announces Half-Year Interim Results

Bahamas Petroleum Company, the oil and gas exploration company with licences in The Commonwealth of the Bahamas,  announced its interim results for the six months ended 30 June 2012.

 Highlights:

Letter received from The Government of the Bahamas (the “Government”) regarding licence compliance, confirming that:

•  All fees due and payable under the terms of the licence have been paid;
• The terms of the licences, the Bahamian Regulations and the Petroleum Act have been complied with as regards the Company’s activities to date.
• Initial ‘fast track’ interpretation of 3D seismic is positive, reinforcing 2D results. Subsequent full PSDM data volume received following completed processing – interpretation underway
• Front end engineering design to construct a well plan for the drilling of a 22,500′ deep exploration well has been completed
• Bahamas Environmental, Scientific and Technical Commission comments received on earlier Environment Impact Assessment (“EIA”) submission and incorporated into Company work plans
• Detailed sea bottom and near seabed geologic survey completed and results being incorporated into Environmental Management Plan and drilling plan
• Joined Clean Caribbean and Americas Association, which places significant amount of equipment at Company’s disposal in order to mitigate impact of any potential incident
• Opened data room for the month of May 2012 and received a number of offers to farm in to its licences – farm-out discussions remain ongoing with a number of interested parties
• Company will continue with process to seek listing on Bahamian Stock Exchange
• Robust cash position to be maintained by cash preservation actions

 Simon Potter, Chief Executive of Bahamas Petroleum Company, said:

“The first half of 2012 has been a busy period for both the Company and the Bahamian people who have seen a new Government elected to power. The Company continues to work closely with the new Government especially on the environmental front as we progress our plans to drill an exploratory well in Bahamian waters. The Company has made considerable progress in further de-risking of prospects within its southern licences with the receipt of initial ‘fast track’ results from its 3D survey completed in 2011. Sufficient confidence was derived from these data to commission an initial front end engineering design (FEED) to construct a well plan for the drilling of a 22,500′ deep exploration well. Incorporation of all Government input and the quality of the data will ensure that the Company remains consistent with the Government mandate that all oil exploration and production be regulated by the highest standard of health, safety and environmental protection. Completion of the current work plan will place the Company in a position where drilling can commence at the earliest possibility.

“The letter received from the Government in September 2012 advises that any mandate for drilling programs would be contingent on the outcome of a general referendum to be held in the Bahamas on oil exploration. The Company is already engaged in a vigorous and proactive campaign to present the benefits a successful exploration program could bring to the nation and in particular the people of The Bahamas. No details have been received as to the timing nor final wording of such a referendum but we will update shareholders as soon as there is clarity.

“The Board continues to look to the future with confidence and excitement.”

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Press Release, September 26, 2012