Unnamed oil major ending exclusivity deal with Bahamas Petroleum

Oil and gas exploration company Bahamas Petroleum told shareholders on Friday that it has received notice from the major international oil company that it entered into an exclusivity agreement with on 1 May that it would not further extend the exclusive nature of negotiations beyond 31 August.

The AIM-traded firm, in conjunction with its adviser Macquarie Bank, had therefore recommenced broader, asset-based discussions with third parties in addition to those non-asset based financing discussions already ongoing for the funding of its first exploration well.

To date, the company said it had received $1m in exclusivity payments.

No further amounts would be due or payable given the exclusivity would not be extended.

“Appetite for ‘frontier’ exploration has improved as the industry cycle has turned and the company continues to move forward with farm-out and financing options, working closely with our adviser Macquarie,” said Bahamas chief executive officer Simon Potter.

“The company with which we have been in exclusive negotiations has elected not to extend further the period of exclusivity, which means we will receive no further exclusivity payments.”

At the same time, Potter said that having demonstrated interest from an international oil major, the company was now able to freely re-engage in discussions with all other parties, which had previously been put in abeyance.

“Following receipt of $1m in exclusivity payments under the agreement and the raising of additional finance through the placing of shares in May, the company remains adequately funded to continue developing well financing options through to completion.

“We will provide the market with further updates when appropriate.”