Bahamas Petroleum Company PLC (LON:BPC) shares jumped this morning as the firm announced that it has secured environmental authorisation for the Perseverance-1 well, which is expected to spud in April 2020.
The company noted that the authorisation is the conclusion of an extensive and thorough process over many years, involving local and international agencies, independent third-party expert consultants, and extensive engagement across all aspects of Bahamas government.
BPC can now advance its preparations for Perseverance-1 which will be targeting a large and significant prospect, estimated between 700mln and 1.4bn barrels of prospective resources.
"On the way to delivering our single-minded goal of safely completing the drilling of the Perseverance-1 exploration well there will be no more important milestone than receipt of Environmental Authorisation from The Government of The Bahamas,” said Simon Potter, BPC chief executive.
He added: “We continue to make rapid progress toward the drilling of Perseverance-1, and remain on schedule for a well spud in April 2020.
“I look forward to updating shareholders on additional milestones in the coming weeks, in what we expect to be an exciting time for our company. "
Countdown to Perseverance
Perseverance-1 will be drilled in the northern segment of the ‘B Structure’ to target around 700mln barrels of recoverable prospective resources, with the ‘upside case’ estimates pitched twice as high.
The B Structure is seen across some 70-80 kilometres and could host up to multi-billion barrels of crude resources.
Assuming an April start, results would follow later in the second quarter.
In a note yesterday, house broker Shore Capital identified a number of catalysts and milestones into and through the Perseverance-1 programme.
“We expect BPC to make further announcements in the lead up to spudding,” said analyst Craig Howie.
“We sense that announcement of a rig contract will be a particularly noteworthy milestone for investors to look forward to, as BPC targets significant prospectivity across acreage which has already been substantially derisked and delineated over several years.”
Shore Cap has today updated its valuation to reflect the progress towards Perseverance and, pitched at 8p per share, the broker’s ‘risked NAV’ for the company compares against a current share price of 4.25p.
In early morning trading, Bahamas Petroleum shares were 7.8% higher at 4.85p.
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