London-listed oil company Bahamas Petroleum Company (BPC) expects to drill its initial exploration well in The Bahamas in April 2020.
BPC said in its said in an update on Thursday that the well, named Perseverance #1, would be drilled in April and that the results were expected to follow in the second quarter of 2020.
The Perseverance #1 well location is finalized for the northern segment of the B structure and would be targeting P50 recoverable prospective resources of 0.77 billion barrels of oil, with an upside of 1.44 billion barrels, solely for this northern structural closure portion of the B structure
The B structure extends for between 70 and 80 kilometers, has a mapped areal closure over 400 sq. km and has an aggregate most likely recoverable resource potential in excess of 2.0 billion barrels.
The well will be located in water approximately 518 meters deep, with a target depth of 4,822 meters, but with a capability to be able to reach 5,600 meters, thereby affording the ability to evaluate multiple reservoir horizons throughout the entire stratigraphic column below the Tertiary cover. The ultimate decision on well depth will depend on real-time drilling results and geological information.
Simon Potter, CEO of BPC, said: “Perseverance #1 has the potential to open a world-class, new frontier basin offshore Bahamas, less than 200 miles from the world’s largest hydrocarbon market and infrastructure.
“In our view this makes Perseverance one of the premier prospects that could be drilled globally this year with the potential to not only fundamentally alter the status of BPC in the market, but to also transform the revenue-generating capacity of the Bahamian economy.”
Over the past months, the company has been working to finalize the process of rig selection and contracting with Seadrill, and to advance contracting for other services including the master services agreement with Halliburton for integrated downhole services and various other equipment required for the drilling campaign.
According to BPC, physical inspection of the proposed rig is scheduled to occur shortly, while it is in port for class certification. Subsequently, the company expects to be in a position to finalize and enter into the definitive contract for the rig in the coming weeks.
In parallel, the company placed long-lead orders for casing and drill bits and will shortly be finalizing contracts for the provision of supply vessels, and helicopter services to the rig following an extensive tendering process. BPC expects to complete its contracting for a further range of other necessary services and equipment suppliers over the coming weeks.
To remind, BPC entered into a subscription agreement in relation to a conditional convertible loan note investment of £10.25 million ($13.36M).
Recognizing the extent of the well program and the consequent time taken to finalize a number of key contracts, the company and the parties to the conditional convertible loan note subscription agreement have agreed to extend the date for satisfaction or waiver of all conditions precedent to March 9, with all other terms and conditions unchanged.
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