The company's singular focus remains to commence responsible and safe drilling operations as soon as possible, with further de-risking of the project taking place during the Year:
Highlights of 2015
Four southern licences were renewed for a further three years to mid-2018 with a requirement to commence an exploration well by April 2017.
Technical and engineering works were completed, reducing the anticipated cost of the initial exploration well, targeting a total cost of US$50 - US$60 million.
Detailed preparation of the required Environmental Management Plan (EMP) and community engagement programme continued.
Positive regulatory progress made:
The Petroleum Bill was passed, associated Regulations and the Sovereign Wealth Fund Bill in Bahamian House of Assembly.
The company focused on maintaining strict cash expenditure with continued initiatives implemented to reduce costs.
Total operating cash outflows decreased by 8% and employee/personnel costs reduced by 10% year on year in 2015.
The company's total annual overheads were reduced by over 50% since 2011.
Existing applications for new licences were resubmitted consistent with strategic and technical focus.
An ongoing engagement with local communities that have an interest in the project was maintained.
Farm-out discussions continue with parties for a strategic and funding partner.
The balance sheet at year end showed a total balance of US$5.6 million.
Post period end:
The Bahamian Senate passesd the Petroleum Bill and the Sovereign Wealth Fund Bill, which was subsequently signed by the Governor General to become known as the Petroleum Act 2014 and Sovereign Wealth Act 2014.
The Board decided to defer 50% of its fees to be paid in shares contingent on a farm out agreement, and the CEO and certain other executives of the company to defer 90% of their salaries to be paid contingent on a farm out agreement and funding of the first exploration well.
Adapted from a press release by Louise Mulhall
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/21032016/bahamas-petroleum-company-2015-financial-results/