Bahamas Petroleum Company PLC (LON:BPC) has agreed to extend the deadlines attached for its £10.25mln loan note offering, as the explorer continues to advance towards the start of drilling for the Perseverance-1 well.
Certain variations have been made to the original arrangement, including that the company will now be able to scale back the number of notes in issue.
Investors will still be able to subscribe for notes until 15 April, with a further extension possible out to 15 May.
Efforts continue for a farm-out or similar transaction, the company added.
"We continue to make steady progress toward drilling of the company's 100% owned and operated Perseverance-1 well, targeting recoverable prospective resources of 0.7 - 1.4bn barrels of oil,” said chief executive Simon Potter.
“As we prepare for drilling we are taking every opportunity to optimise a large number of moving parts - both financial and operational - and as part of this process we have successfully ‘reset’ the timeline for our convertible notes while we work on finalising remaining conditions, at the same time seeking to only draw funds when they are actually required, with a view to reducing the overall cost of our comprehensive funding package.
“We have also been able to introduce a degree of optionality into those arrangements as we continue to pursue potentially more attractive options - for example, a farm-in - which would mean we could correspondingly scale back the convertible notes, consistent with our funding strategy to minimise costs and dilutionary impact.”
Procedural milestones to drilling
The company today noted a number of procedural conditions to the completion of the loan note offering.
Firstly, the formal placement of an insurance policy for the drilling operations, and, entering into the definitive contract for drilling.
Plus, the rubber-stamping of contracts to cover well services (the final forms of which have already been agreed) and final agreements over with the Bahamas authorities over the remaining licence fees.
Subscribers of notes were additionally issued options to buy other new shares, up to a total of 25mln shares priced at 2p, and the company has noted that some so far some 3.25mln share options have been exercised.