LONDON (Alliance News) - Bahamas Petroleum Co PLC Monday saw its shares fall after it said that Norwegian oil company Statoil has given it notice that it will discontinue their joint licence development agreement, meaning that its Zapata, Falcones and Islamorada licence applications will revert into Bahamas' sole name.
In a statement, Bahamas said Statoil had made the decision after significant exploration success elsewhere and a subsequent review of its global portfolio.
Bahamas said the move provides it with the opportunity to provide more options for potential partners for the licenses. The government in the Bahamas recently allowed exploration drilling within the licenses.
It said it had borne all the costs of applications regarding the licenses to date.
"We are excited about the level of interest in our data room, which today's announcement will further support. We have been encouraged by progressing farm-out discussions and a newly clarified Government mandate to proceed with exploration drilling," Bahamas Chief Executive Simon Potter said in a statement.
"We are now in a position to take whole ownership of the secondary area licence application process and provide an attractive opportunity for potential new farm-in partners. The three licence applications lie adjacent to four of the Company's fully permitted southern licences and present on-trend upsides to parties already engaged in farm-in discussions," Potter added.
"Coupled with a robust cash position, our positive outlook remains unchanged as we focus on preparations during the year for the first exploration well," the CEO said.
Still, the company's shares were down 7% at 4 pence early Monday.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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