London-listed junior makes progress off Bahamas

London-traded Bahamas Petroleum (BPC) is hoping to procure a drilling rig from deepsea contractor Seadrill to sink its first exploration well off the shore of the Bahamas.

The explorer has entered into a framework agreement with Seadrill to obtain a sixth-generation rig, setting out key commercial terms, a day rate and a delivery schedule, it said in a statement on August 21. The deal is subject to approval by Seadrill’s board and other conditions, although the pair are required to enter into a finalised contract no later than October 11.

BPC said it was on track to spud the well in the first half of 2020, having also hired Halliburton as its integrated well services provider and General Electric subsidiary Baker Hughes to supply well-related equipment.

BPC has lowered its cost estimate for the well to $25-30mn, or below $50mn if it opts for a two-well campaign. The company is in talks with “multiple parties” to find a partner to help carry this cost. It is also looking at alternative options for financing, having signed a conditional agreement with Australia’s Bizzell Capital Partners for a £10.25mn ($12.4mn) loan.

The company is the sole holder of the Bain, Cooper, Donaldson, Eneas and Miami licences that cover acreage next to the Bahamas' maritime border with Cuba.