MODERN TECHNOLOGY LEVERAGES OPPORTUNITY

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SIMON  POTTER  CHIEF  EXECUTIVE  OFFICER  

September 2013

Disclaimer

This presentation (“Presentation”) has been prepared by Bahamas Petroleum Company plc (the “Company”) solely for its use at informational meetings with its shareholders and is being delivered for information purposes only to a limited number of persons. This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, officers or advisers. If you are in any doubt about the contents of this Presentation or the action you should take, you should consult an independent adviser authorised to render such advice.

This Presentation has not been independently verified and is subject to material updating, revision and further amendments without notice. The Presentation does not purport to contain all information that a member of the Company may wish receive for purposes of assessment or valuation of his respective investment and is not intended to form the basis of any investment decision.

While the information contained herein has been prepared in good faith, neither the Company nor its shareholders, directors, officers, agents, employees, or advisors give, has given or has authority to give, any representations or warranties (express or implied) as to the achievement or reasonableness of future projections, management targets, estimates, prospects or returns contained in this presentation, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any shareholder of the Company (all such information being referred to as “Information”).

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So far as permitted by law, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers (including the Agents) take any responsibility for, or will accept any liability in respect of, the accuracy, reliability or completeness of the Information or for any loss, howsoever arising from the use of this Presentation. In furnishing this Presentation, the Company does not undertake any obligation to provide any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent.

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This presentation contains certain statements which may constitute forward-looking statements. All statements in this presentation, other than statements of historical facts, that address future activities and events of developments that the Company expects, are forward-looking statements. Although the Company believes that the expectations reflected in these statements are based on reasonable assumptions, such statements are only predictions and are subject to inherent risks and uncertainties and changes in the underlying assumptions which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward-looking statements.

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Company Highlights

  Multiple play-types with scale potential – proven Cuban petroleum systems

  CPR highlights multiple billion barrel prospects – extended and derisked by 3D

  Fiscal terms yield returns commensurate with risk – Government clarity drives activity and investment

  Value realisation by material participation through funded well execution

Corporate  and  Commercial  •  Capitalised  Expl.  US$45.7  mill.  

•  Funds  Expended  US$82.8  mill.  

•  Cash  end  2012  US$21.3  mill.                      est.  2013  US$15  mill.  

•  New  CA’s  signed;  revised  mandate  sOmulated  interest  

•  Fully-­‐funded  for  immediate  future;  F/O  interest  renewed  

         Opera0onal  and  Technical  •  3D  Seismic  data  interpreted  

•  Residual  risks  post  CPR  further  miOgated  

•  ProspecOvity  deeper  confirmed  

•  Well  Plan  FEED  completed  

•  No  read-­‐across  from  Cuba  wells  

•  Technically  robust  and  drill  ready  

Government  and  Environment  •  Moratorium/exploraOon  referendum  

•  Licence  renewed/extended  •  New  oil  &  gas  regulaOons  –  internaOonal  best  pracOces  

•  EIA  public;  EMP  underway  

•  Poli;cal  clarity  reinvigorates  explora;on  process  

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Anticipated BPC location

Curtailed Cuba Drilling

Previously drilled wells

★  ★     Licences grant 2007- renewed 2013

• Obligation to drill – commence April 2015

• 4 million acres, 16 million sq.km, 672 OCS

  New applications submitted 2010

  Listed London: 2008 (AIM:BPC)

  +$50 million spent to date

  Nassau based office and staff

  Attractions

• Prospectivity and scale – multiple play types and multi-billion barrel prospects

• Location and cost structure

• Legislative and fiscal stability

• Technology application

Company and Licence Overview

Regional Prospectivity and History

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  Doubloon Saxon - 1987 •  Oil Shows

•  Some good source rock

•  Good reservoir/seal intervals

•  Normally pressured

  No commercial production

  No viable structures

  Regional data acquired

  Reinterpretation/reprocessing

  All core & chippings recovered

  Cost to acquire now +$0.5 bn

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Accumulated Seismic Database on Workstation

1985

2011

2013

Tenneco

BPC

BPC

Cuba

Florida

Bahamas

Seismic Acquisition: 3D PSDM

Trend A

Fold B

Fold C

Fold B

Fold C

Fold B

Cross-­‐sec0on  

High  to  Low  

ç Cuban Border Andros è

Fold B

Fold B

Fold B

Fold C

Fold C

Fold C

Trend A

Trend A

Fold B Fold C

Depth Length Closure

Area

Fold B

700 m ~75 kms 423 km2 (104,526 acres)

Fold C

950 m ~25 kms 63 km2

(15,814 acres)

Late  Cretaceous  

Albian  

Ap0an  

Depth Length Closure

Area

Fold B

2,400 m ~75 kms 288 km2 (71,166 acres)

Fold C

3,250 m ~25 kms 64 km2

(15,814 acres)

Competent Persons Report •  ~3 billion bbl potential •  Risking 35 – 23% Folds B/C •  Below first anhydrite & other

potential not assessed

Conclusion •  Residual source risk •  Only reduced by drilling 6

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Original and Relocated Pseudo Doubloon Saxon - 1

Doubloon Saxon-1 Pseudo DS-1

3D data 2D data

First Evaporite

Good tie between 2D and 3D seismic data

Ome  

First Evaporite

Good tie synthetic to 3D seismic data

Pseudo DS-1

3D Data Mixed 2D and 3D Data

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DS-1 Geological Signature Transposed onto 3D Seismic

Cuba (SW)

Bahamas (NE) Fold B

Prospect Locations, Scale and Extent

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Fold B North

Trend A - Cenomanian Reef

Trend A - Cenomanian Backreef

Trend A – Cenomanian Forereef

10  Kms  

Fold C

Fold B South

Fold B

Fold C

Trend A

MCU Albian

Albian Reef Albian Megabank

Aptian First Anhydrite

Anhydrite/Dolomite

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Cuba Context

Anticipated BPC location

Drilling issues – aborted well short of target depth

Anticipated well locations

Previously drilled wells

Cuba drilled holes

Target  Zone  

Projected  well  

Similar  Projected  well  

Shallower  water  but  thicker,  hard  overburden  

Large  Gap  

2,000m  

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Well Target Comparison: Cuba Evaporite Basin / Bahamas

Environment and Safety Approach

  Regulations and Standards

•  International best practices embodied in EIA

•  No sensitive environments in immediate vicinity of first proposed drill site

•  Modernised and strengthened Regulations

  Equipment and Procedures

•  Performance based systems •  Advanced mud systems

•  Learnings applied

Top Hat Capping Stack

Source:    Helix  Well  Containment  Group  

  Spill Response

•  Response Plan •  Tier III Responder

•  Educated, prioritised and focused response

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➠ Safe Exploratory Drilling

Atlan&c  Ocean  Abaco  

Grand  Bahama  

Eleuthera  

Cat  Is.  

San  Salvador  

Rum  Cay  

Samana  Cay  Crooked  Is.  

Long  Is.  

Andros    

Exuma    

Exuma  Cays  

Cuba  

Cay  Sal  

Great  Bahama  Bank  

New  Providence  

BPC  ExploraOon  Well    Zarubezhnef    drilled  Q1  2013    

Wells  drilled  in  Cuba  2012    AnOcipated  well  locaOons  for  2013  

Storages  

Oilfields  

Oil  Pipeline      Gas  Pipeline  

Mar0n  Mesa    Field   Jarahueca  Field  

Motembo    Field  

Central  Basin    Fields  (4)  

Boca  de  Jaruco  Fields  (5)  

Pto.  Escondido  Yumuri  Fields  (2)  

Santa  Cruz  

Varadero    Fields  (7)  

Refineries  

Terminals  

Cayo  Coco  10  563  f  (3,200m)  

Cay  Sal  IV-­‐1  

Joides  101  

Joides  100  

Joides  99  

             Long  Is.  -­‐  1  

Andros  -­‐  1  

GT.  Isaacs  

Coastal  State  -­‐1  

Doubloon  Saxon  -­‐1  

Joides    98  Williams  Historic  

Boreholes  

Oil and Gas Activity Already Exists!

Major  Shipping  Lanes  

FREEPORT

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Exploration Well Design – Enablers to Drilling Activity

•  Planned well depth: 22,500 feet

•  1 year to plan, 120 days to drill

•  Anticipated well cost: $100 - $120 million

•  3D seismic data to safely plan well

•  Water depth at location: 1,500 feet

•  Distance from Shoreline – Cuba 25 miles

•  Drilling rig – upgraded & advanced safety mechanisms

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  Enablers

•  Moratorium – previous Government

•  Exploration drilling – Political clarity

•  Licences renewed, obligation to drill

•  Licence boundaries realigned

•  Upgraded regulations pending

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Potential Development, Timing and Benefits

Phase

~ 5 – 10+ years

~ 1 year ~ 1 – 3 years ~ 3 – 6 years ~ 20 – 40 years

Seismic & Geologic Studies

Exploratory Drilling

Exploratory/Appraisal Drilling

Development Planning &

Construction

Development and

Production

BPC

$50 million

$60 – 160 million

$400 – 600 million

$multiple billion USD

Gov.

$0 $0 $0 $0 ~ $ tens billion revenue

Completed In Progress Estimated Typical Costs Based upon Exploration Success

Cost

Note: These numbers are based on estimates that could change as the result of exploration drilling. Does not include cost of capital to shareholders.

  Bahamas Investment Climate

•  “Open for Business”

•  Stability – legal and fiscal

•  Established framework – No Corporation/Income Tax, No CGT

•  30 year Production Licence

•  Royalty rate to 25% on revenues

  Benefits to The Bahamas

➔  No financial risk/cost to Government

➔  Long term source of revenues

➔  Diversification of the economy

➔  Time: training and employment

➔  Local contracts/investment

➔  Costs of fuel and power

Timeline: Company Planning

2Q15 1Q15 4Q14 3Q14 2Q14 4Q13 3Q13 2Q13 1Q14 1Q13

ENVIRONMENT

DRILLING OPTIONS

Well Planning

COMMERCIAL

4Q12

Hurricane Season Hurricane Season

Zarubezhneft Drilling

EIA Published

Petronas Drilling

Public Consultation ???

Regulations ??

EMP Spill Plan Sensitivity Maps

Funding Options ?

CUBAN DRILLING

Well Planning

Long Lead Items

Referendum Decision

Decision

Final Consultation? Final Consultation?

Decision

Long Lead Items

Designed Well Engineered

Corporate Objectives •  A well safely executed to 22,5000’ into Jurassic source •  Shallower objectives as justified commercially •  Facilitate the drilling of a well

•  Address funding, environment and permissions

Drilling

BDR Listing

Hurricane Season

Hurricane Season

Drilling Commencement Range

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