Bahamas Petroleum Company closes initial Bahamian fund subscriptions

Bahamas Petroleum Company closes initial Bahamian fund subscriptions

Bahamas Petroleum Company PLC (LON:BPC) confirmed it has now closed the initial subscriptions into its new Bahamian mutual fund, receiving around US$914,000 (circa £700,000).

The fund was set up exclusively to enable investors in the Bahamas to invest in the company’s exploration campaign in the islands.

Subscriptions into the fund were priced at the equivalent of 2p per underlying BPC share which was the market price at the time, early January. The original deadline for subscriptions was 7 February, and, it was extended to 12 February.

READ: BPC set to drill ‘Perseverance’ exploration well in April

“The mutual fund initiative was set up with the straightforward goal of allowing Bahamian investors the opportunity to invest in the outcome of our potentially transformational exploration well, targeting 0.77bn to 1.44bn barrels of oil, which is to be drilled in the first half of 2020,” said Simon Potter, BPC chief executive in a statement. “An opportunity they would otherwise have effectively been precluded from.”

Potter added that “by offering this opportunity at a subscription price of 2p, potential Bahamian investors have been extended this opportunity under the same conditions as had recently applied to UK investors alike.”

“Accordingly, the fund has and will continue to accomplish its objective, in creating a vehicle through which Bahamian investors can, should they so wish, participate now or in future in the fortunes of the company,” he concluded.

BPC noted that the proceeds received via the mutual fund will be in Bahamian dollars and it intends to use this new capital to cover domestic costs. The process does not factor in to the funding strategy for its Perseverance-1 well.

The initial subscription price now represents a significant discount to the market price for BPC, and, as such the company has now closed the process to any further late applications. Going forward, the fund will undergo monthly valuations and will be repriced monthly for new subscriptions.

In order to ensure the opportunity for further local Bahamian participation, the company said it will set a price of 3.35p for the first valuation event on 31 March 2020 only. This price will be available for a maximum of 40mln shares.

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