Bahamas Petroleum reduces half year losses – MoneyWeek

Bahamas Petroleum reduces half year losses – MoneyWeek

SimonPotter,ChiefExecutiveofBahamasPetroleumCompany,said:Thefirsthalfof2012hasbeenabusyperiodforboththecompanyandtheBahamianpeoplewhohaveseenanewgovernmentelectedtopower。

TheCompanycontinuestoworkcloselywiththenewgovernment,especiallyontheenvironmentalfrontasweprogressourplanstodrillanexploratorywellinBahamianwaters。

Thecompanyhasmadeconsiderableprogressinfurtherde-riskingofprospectswithinitssouthernlicenceswiththereceiptofinitialfasttrackresultsfromits3Dsurveycompletedin2011。

Sufficientconfidencewasderivedfromthesedatatocommissionaninitialfrontendengineeringdesign(FEED)toconstructawellplanforthedrillingofa22,500deepexplorationwell。

Incorporationofallgovernmentinputandthequalityofthedatawillensurethatthecompanyremainsconsistentwiththegovernmentmandatethatalloilexplorationandproductionberegulatedbythehigheststandardofhealth,safetyandenvironmentalprotection。

Completionofthecurrentworkplanwillplacethecompanyinapositionwheredrillingcancommenceattheearliestpossibility。

ThefirmdidwarnthatithasnotbeengivenadateforthereferendumthatistobeheldontheordersoftheregionalgovernmentonanfutureBahamianoilexplorationdrillingbeforeanyapprovalsfordrillingcanbeissued。

Thefirmsaidthatthelackofanydateforthereferendummeansamaterialuncertaintyexistswhichmaycastdoubtonthegroupsabilitytorecoveritsintangibleexplorationandevaluationassets。

However,untilthereferendumisheld,thefirmsaiditbelievesitscapitalisedintangibleexplorationandevaluationassetsarenotimpaired。

Intheeventthatthereferendumresultsinadecisionagainstfutureoilexplorationdrilling,theexplorationandevaluationexpenditurecapitalisedinrespectofthegroupsfivelicenceswillbesubjecttoimpairmenttesting,itadded。

Thesharepricehaslost45%ofitsvalueoverthepastyear,equaltoalmost4p。

NR

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