BPC announces new name, Potter stepping down as CEO

With outstanding payments still owed to the Bahamas government for licensing fees and as the company seeks renewal of those licenses, Bahamas Petroleum Company (BPC) announced on Friday that its Chief Executive Officer Simon Potter is stepping down from his role and will serve as a non-executive director. The company is also changing its name to better reflect its operations in other jurisdictions and will raise close to $10 million in equity.

BPC’s new name will be Challenger Energy Group Plc.

The announcement came as the company’s shares plummeted another 24 percent when markets closed last week to land at 0.40 pence.

Bahamas Reef Environmental Educational Foundation (BREEF) Executive Director Casuarina McKinney-Lambert, whose organization was among a group of environmentalists seeking to stop BPC’s oil drilling last year, urged the government once again not to renew the oil company’s licenses, which are due to expire in June.

“The Bahamas has a huge opportunity to use the negative publicity from this dangerous and unsuccessful oil drilling venture to signal that we are instead choosing to prioritize a sustainable, climate-resilient future,” she told Guardian Business.

“We have a wonderful opportunity now to showcase that we really can be the country that is ‘powered by the sun’, rather than go down the precarious path of becoming a petrostate. It is time to fully reject oil drilling in our pristine waters by refusing to grant the company’s request to extend its licenses yet again and by implementing a ban on oil drilling.”

BPC stated that while it has sufficient funding to cover the completion of negotiations in relation to license renewals in The Bahamas, the completion of invoicing, payment scheduling and resolution of disputes and the final settlement of estimated costs associated with the completed drilling of Perseverance #1 – at approximately $4.5 million – funding may be needed for any incremental costs associated with renewal of its licenses, including community programs and ongoing legal costs as may be required to continue to successfully defend the company’s licenses in the event of ongoing environmental challenges in The Bahamas.

BPC stated that because its only business between 2008 and mid-2020 was based on the various licenses it held in The Bahamas, the company’s name Bahamas Petroleum Company was entirely appropriate, but with new ventures, a name change would better reflect the company’s expansion into other areas.

“Since mid-2020, the company’s operations and business strategy have expanded considerably, such that it now includes assets and operations in Trinidad and Tobago, Suriname and Uruguay, in addition to those in The Bahamas,” BPC stated.

“As detailed in this document, the near-term focus of the company has shifted toward a rapid build-up of profitable production from operations in Trinidad and Tobago and Suriname, initial technical work in Uruguay and in parallel pursuing a farm-out (and renewal) for those licenses in The Bahamas. The company in the future may also become involved in assets and operations in other jurisdictions. As such, the board considers that the name of the company, referring solely to The Bahamas, is no longer an accurate representation of the company’s overall business or strategic direction.”

Regarding the stepping down of Potter as chief executive officer, BPC stated it considered this time – as the company shifts its near-term focus on its Trinidad and Suriname operations – appropriate to make executive management team changes.

Potter, who has served as chief executive officer since 2011, is expected to step down from that role effective May 20, 2021 and then remain on the board of the company in the capacity of non-executive director, with a remit to provide ongoing support to the new executive team given his long history with BPC and his deep industry knowledge and experience, BPC stated in a release.

Eytan Uliel, who has acted as BPC’s commercial director since 2014, will replace Potter.

Speaking on his new post, Uliel said, “Our company has a diverse full-cycle portfolio of production, development and exploration assets. The work program for 2021 and beyond is busy and contains many value triggers. The reset proposed will enable us to get after that value, through building production and cash flow. I am excited by the prospect of leading Challenger Energy Group and I look forward to engaging with all our stakeholders over the coming months.”

BPC stated it is still moving ahead with its plans to seek a farm-out of its four Bahamas licenses.

“Concurrent with the farm-out process, the company will seek to renew its 100 percent interest in the southern licenses by extending the licenses into the third exploration period. The third exploration period for the southern licenses would last for three years and will require a further exploration well to be drilled before the period expires, failing which the licenses would be forfeited,” BPC stated.

“An extension of the licenses will attract an annual license fee (the amount to be determined during the renewal process) and requires a relinquishment of 50 percent of the license area. Notification of renewal of the licenses has been submitted to the appropriate ministry and the area to be relinquished has been identified as being the area equivalent to that over the shallower water depths covered by the southern licenses (less than circa 200 feet).”

And as for its financial position, the oil company stated it is seeking to recapitalize to raise up to, in aggregate, approximately £6.9 million of new equity by way of an open offer to holders of existing ordinary shares.

“The open offer provides an opportunity for all qualifying shareholders to participate in the fundraising by acquiring open offer shares pro rata to their current holdings of existing ordinary shares. Qualifying shareholders are also being given the opportunity to apply for excess shares through an excess application facility, provided that they take up their open offer entitlement in full,” BPC stated.

“Qualifying shareholders will be able to subscribe for shares under the open offer shares at a price of 0.35 pence per share (on a pre-share consolidation basis, which equates to 3.5 pence per share on a post share consolidation basis), pro rata to their holdings of existing ordinary shares on the basis of one open offer share for every 2.46 existing ordinary shares.”

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source https://thenassauguardian.com/bpc-announces-new-name-potter-stepping-down-as-ceo/