Bahamas Petroleum Company (AIM:BPC ) has updated investors on the current status of the company’s two contract arrangements in Trinidad & Tobago.
Goudron Extension
The Caribbean and Atlantic margin-focused oil and gas group said the term of its Goudron Incremental Production Service Contract ("IPSC") with Heritage Petroleum Company Limited ("Heritage") has now been extended from 30 September 2020 until 31 December 2020.
London-based Columbus Energy Resources also agreed to extend the incremental production service contract with Heritage for the Goudron oil field located in Trinidad & Tobago in July.
It said the extension of term is an interim measure to allow time for Heritage to obtain requisite consents from the Ministry of Energy and Energy Industries to implement a new 10-year Enhanced Production Sharing Contract ("EPSC") agreement.
BPC has a 100% interest in the Goudron field via its current IPSC with Heritage, and this interest will be reflected in the EPSC.
BPC management has been assured, during initial interactions with both Heritage and the Ministry post completion of the merger with Columbus Energy Resources, that the signing of the EPSC agreement will occur in the near future.
Inniss-Trinity Expiry
Meanwhile, BPC updated investors on its Inniss-Trinity asset, in accordance with the Well Participation Agreement (“WPA”) previously entered into in November 2017 with Predator Oil & Gas.
Predator is supporting the funding of Inniss-Trinity, as a joint venture partner, which to date has been progressed as a pilot project, testing enhanced oil recovery within the mature field.
Predator was required to enter into a Share Purchase Agreement ("SPA") to acquire the corporate entity that holds 100% of the Inniss-Trinity asset, for a consideration of $4.25m.
The Company has now announced that BPC and Predator have not entered into such an SPA by the agreed deadline, and that accordingly, this aspect of the WPA has now lapsed.
The Inniss-Trinity field, currently produces around 150 barrels of oil per day, before any incremental production from the increased operational efficiency or the application of enhanced oil recovery techniques, it said.
The Company also told investors this morning that it will continue to review the application of a range of enhanced oil recovery techniques and will seek to undertake further reservoir enhancement work ‘based on technical merit and as commercially justified.’
Shares in Bahamas Petroleum Company have more than doubled from lows of 1p in the height of the COVID-19 pandemic and were trading 0.90% lower this morning at 2.2p.
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