(aim: bpc) the bahamas · following limitations. this presentation has not been independently...

(AIM: BPC)

THE BAHAMAS: A GIANT OIL PROVINCE IN

THE MAKING

FirstEnergy Conference

September 2011

Isle of Man Head Office:

IOMA House

Hope Street

Douglas

Tel: +44 1624 647883

Email: [email protected]

Website: www.bpcplc.com

Bahamas Petroleum Company Plc 2D Seismic

Acquisition 2011

mailto:[email protected]://www.bpcplc.com/

Important Notice

This presentation (“Presentation”) has been prepared by Bahamas Petroleum Company Plc (the “Company”) solely for its use at informational meetings relating to the proposed placing by the Company and is

being delivered for information purposes only to a limited number of persons. By attending the meeting where this Presentation is made, or by reading the presentation slides, you agree to be bound by the

following limitations. This Presentation has not been independently verified by FirstEnergy Capital LLP, Novus Capital Markets Limited or Canaccord Financial Inc. (together, the “Agents”). The Presentation does

not purport to contain all information that a prospective investor may require. While the information contained herein has been prepared in good faith, neither the Company nor its shareholders, directors, officers,

agents, employees, or advisors (including the Agents) give, has given or has authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness

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Some statements contained in this Presentation or in documents referred to in it are or may be forward-looking statements, including, but not limited to, statements as to future operating results, reserves, work

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of the date of this Presentation, are reasonable, no assurance can be given that they will prove to be correct. Actual results may differ from those expressed in such statements, depending on a variety of reasons.

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This Presentation has been prepared in compliance with English law and English courts will have exclusive jurisdiction over any disputes arising from or connected with this Presentation.

2

Introduction

Bahamas Petroleum Company Assets

History and Corporate Overview

Geologic and Geophysical Review

Ryder Scott Company Competent Person’s Report Summary

Recent Activity in Cuba

Summary

3

Our Assets – Awarded Licences & Licence Applications

4 4

2011 – 2D Seismic Showing Correlations Across Folds A, B & C

5 Section is horizontally compressed approximately 2:1

Fold B 5 km

Fold A Fold C

Near top Cretaceous

Top lower Cretaceous – Albian

Intra lower Cretaceous – Aptian

Intra lower Cretaceous – Base Aptian

Jurassic

Cuba Nassau → 270 km

Corporate History – First Mover Advantage

6

Group is

founded

by Alan Burns

The Company

submits licence

applications

Licence

awarded and

reassigned

November 2006

Ministry of

Energy

grants the licence

application

Five licences

approved by

Governor

General of The

Bahamas

The Company

applies for

additional

licences

The Company

completes RTO onto

AIM market through

acquisition of Falkland

Gold and Minerals

The Company

signs Statoil joint

exploration

agreement on

three licences

The Company

announces

intention to re-

domicile the

Company in

IOM

Ministry gazettes

Bahamas Petroleum

Company Statoil Cay

Sal applications

The Company

announces

preliminary

results of

seismic

The Company applies

for 2 additional

licences and tenders

for additional seismic

Bahamas

Government

announces

temporary

freeze on

licence

applications

The company

announces

completion of 2D

seismic survey

and successful

initial results

Initiates 3D seismic,

multibeam and EIA

around potential

drilling prospects

Finalise

negotiations

and

announce

farm-out

transaction

Target for

first well in

Bahamas H2

2012

Over US $30 Million Spent on Geological, Geophysical and Well Core Acquisition, Evaluation and Processing

The

Company

raises

£5.1mn for

2D seismic

campaign

Apr May Jun Jul Aug Sep Jan Feb Mar Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Jul Aug Sep Apr May Jun Oct Nov Dec Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Q2 2005 Q3 2005 Q1 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q3 2008 Q2 2009 Q4 2009 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

3D seismic

processed and

interpreted

CPR by Ryder

Scott on

resource

potential

Company

raises £45.6m

before costs

for 3D seismic

and further

exploration

Corporate Overview

Isle of Man based Oil and Gas Exploration Company

The ordinary shares of the Bahamas Petroleum Company Plc are traded on the London Stock

Exchange Alternative Investment Market (AIM: BPC)

7

Share Price Information Current Shareholders as of 31st July 2011

Shareholder Shares Held %

Fidelity

99,771,110 8.11%

TD Waterhouse 55,469,722 4.51%

Halifax Share Dealing 47,248,689 3.84%

Hargreaves Lansdown Asset Management 46,987,940 3.82%

Barclays Wealth 44,534,788 3.62%

Standard Life Investments 40,000,000 3.25%

Majedie Asset Management 38,590,886 3.14%

Burns Family Investments* 15,164,989 1.23%

Gumbo Investments* 12,360,000 1.00%

Total Management & Founders 28,109,989 2.28%

Total – Top 25 Shareholders 704,613,107 57.26%

Total Shares in Issue 1,230,479,096

* Director Shareholdings

* Share price and Market Cap correct as at 2nd August 2011

** Based on share price as at 2nd August 2011

GBP USD

Price* 0.0949 0.1539

52 Week High 0.2525 0.4094

52 Week Low 0.0270 0.0438

52 Weeks to date Percentage Growth** 251% 251%

Market Cap (mm) 116.8 189.3

Why The Bahamas?

Under-appreciated oil and gas exploration potential

A politically stable country with an uninterrupted parliamentary democracy of over 275

years

Excellent fiscal terms and English based Rule of Law

Benefits from proximity to extensive oil field service and infrastructure providers in US

Gulf of Mexico

Close proximity to energy-hungry US market, both in the GoM and along the US Atlantic

coast

8

Commonwealth of The Bahamas

Population: 310,426

GDP (US$ Bn): 7.38

GDP per capita (US$): 28,600

Unemployment Rate (%) 14%

Median Age (years): 29.9

Literacy 96%

Key industries:

Tourism, banking, cement, oil

transhipment, salt, rum, aragonite,

pharmaceuticals

Source: CIA World Fact Book, Bahamas Department of Statistics - 29/12/2010

Royalty Rates and Leases Terms

Production Level Royalty Rate

Oil Production, up to 75,000 bopd 12.5%

Oil Production, from 75,000 to 150,000 bopd 15.0%



Oil Production, in excess of 350,000 bopd 25.0%

Gas Production 12.5%

Rentals: $0.92 per acre per annum charged for the area of a lease, but

these charges are deductible from royalty payments

Income taxes: Nil in The Bahamas

Technical Team

Exploration office in Nassau, Bahamas staffed with Chief Operating Officer and three

employees

Standing U.S. and U.K. Consultants

− Mr. Jim Cockings, Geologist – Cuba Oil and Gas Activity Expert

− Mr. Michael Coulthard, Subsea Completion Engineer

− Mr. Jock Drummond, Seismic Processing Expert

− Mr. James Ehrets, Reservoir Geologist and Engineer

− Dr. Charles Karens, Carbonate Geologist – World-wide Mesozoic Carbonates Expert

− Dr. Jon Kirkpatrick, Geophysicist – Carbonate Exploration and Exploitation Specialist

− Mr. Kenneth Kreckel, Geophysicist – Carbonate Exploration and Exploitation Specialist

− Mr. Paul Ozanich, Seismic Interpreter

− Dr. Mark Rowan, Structural Geologist – Gulf of Mexico and Fold and Thrust Belts Expert

− Mr. Ian Thomson, Drilling Engineer

− Dr. Douglas Waples, Geochemistry and Petroleum Systems

University Industrial Programmes

– University of Miami, Comparative Sedimentology Lab

– University of Texas, Bureau of Economic Geology RCRL

– University of Utah, Energy and Geoscience Institute

9

Corporate Highlights

2010 – Significant Year

Significant growth in shareholder value

2D results large structures – first seismic survey since 1987

Two additional licences applied for covering 6,210 km2

JV application with Statoil for Cay Sal Bank licences progressing – initiated EIA

2011 – Busy Programme

Over-subscribed placing of £45.6m (before expenses)

New and existing Institutional Investors

First 2D survey designed to define prospects (January)

Seismic confirmed supergiant size of prospects

3D seismic survey by CGGVeritas BroadseisTM

Multibeam seabed survey

Initiated Environmental Impact Assessment to comply with Government requirement for drilling a well

Ryder Scott Company completed resource estimate

Anticipate first well will be drilled H2 2012 to follow Government policies

In Discussions Regarding a Farm-Out

Strategy

– Data room opened and farm-in opportunity being evaluated for participation by selected companies

– Expect to begin negotiations Q4 2011

10

Licences and Licence Applications

Exploration licence: 12 years in total based on 3-year

renewal periods

Initial 3 year award

1st Renewal (years 4 – 6) @ 100% of acreage –

renewal requires commitment to spud well before

end of year 4

2nd Renewal (years 7 – 9) @ 50% – requires well drilled

every 2 years

3rd Renewal (years 10 – 12) @ 50% – requires well

drilled every 2 years

The current exploration licence period expires in April 2012. Under the

terms of the licences the Governor General grants the licence holder,

Bahamas Offshore Petroleum (BOP) and Island Offshore Petroleum

(IOP), subsidiaries of Bahamas Petroleum, the sole right to undertake

exploration in its licence areas subject to conditions set out in the

licences and Bahamian legislation and regulations. If BOP and IOP

meet the financial and regulatory provisions of the licences the

Governor General shall renew the licences for another 3 years

provided the Company commits to drill an exploration well and spuds

the well before the end of the first renewal year, i.e., by April 26, 2013.

The Company advised The Ministry of the Environment of the

Commonwealth of the Bahamas in a letter dated February 2011 that

Bahamas Petroleum has fulfilled the commitments of the current

licences and that it intends to continue the exploration program into the

next extension (through 2015). The intention is to spud the first well in

2012 and no later than April 26, 2013.

Production licence – 30 years plus additional 10 years

(subject to approval of extension)

11 * Cay Sal and 3rd Round Licence Applications contingent on lifting of Government imposed

application freeze

Wells Drilled in The Bahamas (1947 – 1987)

12

Previous Wells Drilled – Core Interpretation

13 Numerous hydrocarbon shows throughout all wells

Seismic

14

2010 – 2011 2D: Mapped Prospects and Leads

2011 3D: Refine Prospects and Prepare Drilling Plans

2011 – 2D Seismic Line


Fold B 5 km

Fold A Fold C

Near top Cretaceous

Top lower Cretaceous – Albian



Jurassic


Time Structure Top Cretaceous showing Folds A,B, C & D

16 Figure SM-3: Top Cretaceous Fold B and C closure, Red polygon, 75km in length, area 524km2 (129,400 acres)

Depth Structure Top Aptian

17

Contour Interval

500 ft

A

B C

2011 Ryder Scott Report – CPR

HIGHLIGHTS:

Four structures over the Bain, Cooper and Donaldson licences with Un-risked Recoverable Prospective Resources (EUR) in excess of 500 million bbls each at multiple reservoir intervals

Three of the four structures have an un-risked EUR in excess of 1 billion barrels of oil

The EUR have been estimated statistically and each of the separate intervals are considered to have different risk. However, if the hydrocarbon system is working at each level, the four structures have a summed mean EUR greater than four bboe

The report focused on the Cretaceous interval only. The shallower Tertiary strata and deeper Jurassic pre and post-salt will be evaluated after we have completed our 3D seismic interpretation

The report also addresses the Chance of Success by reservoir interval for each structure

18

CPR Potential and Chance of Success by Reservoir Level*

19

* Cretaceous section only Low = 90% probability Best = 50% probability High = 10% probability MMBO = million barrels of oil

2011 – 2D Seismic with CPR Estimates


Fold B 5 km

Fold A Fold C

Near top Cretaceous

Top lower cretaceous – Albian



Jurassic


33 – 363

54 – 538

29 – 315

98 – 1702

93 – 1315

135 – 1611

13 – 146

34 – 798

116 – 1503

Low – High Un-risked EUR (MMBO)

26% 28%

23%

28%

35% 35%

11%

13%

31%

Chance of Success %

Cuba Ramps Up Exploration Activity

In 2005 Repsol, with partners Statoil and India ONGC,

drilled a well 60 miles west of Cay Sal Bank. The group

plans to drill another one or two wells this year in the same

area. In 2009, based on knowledge of the Cuban

petroleum province, Statoil joint ventured with Bahamas

Petroleum Company to explore the Cay Sal Bank.

Other Recent Cuban Exploration News:

• Scarabeo 9 drilling rig expected to reach Cuba in

November (www.petroleumworld.com 29 August

2011)

• Gazprom Neft,Petronas Sign PSA With Cuba On 4

Off-Shore Blocks (Dow Jones Newswires 1 August

2011)

• Cuba, Repsol to follow US rules when drilling offshore

(Reuters 3 June 2011)

• Cuba, Repsol Jaguar prospect PTD, Scarabeo 9 day

rate (Evaluate Energy 20 May 2011)

• 6 April 2011, Repsol YPF expects to have Chinese-

built drilling rig in Cuban waters by end of the summer

(Reuters)

• Cuba, Partners to drill 5 Gulf Wells this summer

(Associated Press 5 April 2011)

• April 5, 2011, Cuba to drill wells by 2013 (Dow Jones

Newswires)

• “Russia`s Zarubezhneft to drill Cuba oil shelf in 2011 –

CEO” (RIA Novosti, Moscow +

www.cubastandard.com 14 July 2010)

21

World class operators have been attracted to

Cuba and The Bahamas

* Cay Sal and 3rd Round Licence Applications contingent on lifting of Government imposed application freeze

Cuba Offshore Drilling Schedule 2011 – 2013

22

* *

*

* Recent 3D Surveys

100 km 2

Key Conclusions

First mover advantage in assembling acreage in The Bahamas

Oil province with world-class exploration potential

Strategy to use farm-outs and also retain some 100% owned acreage

Size and scale of the opportunity attractive to Majors and NOCs

CPR using 2D seismic confirms multiple giant size structures capable of holding >500 MMBO with up to 4 billion EUR

(Un-risked Recoverable Prospective Resources mean)

Busy Q4 2011

Complete 3D acquisition

Submit EIA to Government

Complete current modelling studies

Complete additional technical studies

Secure partner

Complete fast-track processing of 3D

Begin Well planning

23

Bahamas Petroleum Company believes there are supergiant oilfields to be found

in Bahamian waters and is working on its own and with partners to find them

(aim: bpc) the bahamas · following limitations. this presentation has not been independently...

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