Page 10 - LatAmOil Week 44 2019

LatAmOil
NEWS IN BRIEF
LatAmOil
These technologies allow Petrobras to increase efficiencies, reduce costs and improve geoscien- tists’ understanding of the subsurface.
Emerson Automation Solutions, October 30 2019
INVESTMENT
Bahamas Petroleum raises
$11.4mn through placing and
open offer
Bahamas Petroleum Co., the oil and gas explo- ration company with a significant prospective resource in licences in the Commonwealth of theBahamas,hasraised$7.1mnbeforeexpenses through a firm placing of 275,641,455 new ordi- nary shares of 0.002p each at a price of 2p each. The placing was undertaken via an accelerated book-build process, with the Company seeing strong demand and thus increasing the size of the Placing from the initial targeted amount.
Together, the placing and the previously announced successful open offer, raised $11.4mn before expenses representing an over- subscription of 60% against the announced tar- geted placing.
The placing comprises part of a co-ordi- nated funding strategy by the company toward the drilling of an initial exploration well in The Bahamas during 2020. Other elements of this funding strategy as announced to-date are as follows.
Open offer to qualifying shareholders, as announced by the company on October 18, 2019, and closed for acceptances, in accordance with its terms, at 11.00 a.m. on November 1, 2019: The company received valid acceptances
and excess applications from qualifying share- holders for a total of 166,402,235 new ordinary shares under the open offer. All excess applica- tions from qualifying shareholders will be met in full, and in aggregate the Open Offer represented an approximately 50% take-up by existing share- holders, raising gross proceeds of approximately $4.3mn.
Conditional convertible note subscription agreement: This was entered into by the com- pany on October 10, 2019 (and as more particu- larly described in the company’s announcement of that date), whereby, subject to satisfaction of various conditions precedent prior to February 15, 2020, in accordance with the terms of that subscription agreement, the company expects to raise around an additional $13mn.
Whenconsideredinaggregate,theproceeds of the open offer, the placing and the conditional convertible note (assuming all conditions prec- edent to the conditional convertible note are either satisfied or otherwise waived and the con- ditional convertible notes are fully subscribed, and assuming further that interest is capitalised and all principal and capitalised interest is ulti- mately converted) would result in approximately 1bn new ordinary shares being issued, and total funding inflows over the next six months of approximately GBP19.1mn (approximately $24.6mn), with cash inflows matched to the tim- ing of operational requirements. The company’s present estimate of the total cost for the drilling of the initial exploration well is in the range of $20-25mn.
Simon Potter, the company’s CEO, com- mented: “Our clear focus at Bahamas Petro- leum is to drill an initial exploration well on our highly prospective acreage in the Bahamas during 2020, consistent with our obligations to the government of the Bahamas. We have been
working diligently to develop a co-ordinated funding strategy so as to ensure we have access to the funds necessary for drilling, as and when we need them. I am thus extremely pleased to advise all shareholders of our successful open offer and placing, which, in aggregate, have raised approx- imately $11.4mn. When combined with the proceeds we expect to receive from our condi- tional convertible note, we will have secured the finance required for drilling activities, given our anticipated well cost is in the range of $20mn to $25mn. At the same time, we continue to main- tain our cost focus, monitor a range of additional funding options, and progress our farm-in pro- cess, all with a view to strategically enhancing the overall financial capacity of the company, whilst not being reliant on any particular outcome for drillingactivitiestobeimplemented.”
He continued: “I would like to thank exist- ing shareholders for their continued support, commitment to the project and confidence in the ability of management to deliver on their behalf. The path taken to this point has not been straightforward, but collectively we have stayed focused so as to realise the company’s goal; the management team understands the respon- sibility it bears and is determined to succeed. I also take this opportunity to welcome our new shareholders, and I look forward to updating you all on our progress over the next six months as we ramp up for drilling operations. We strongly believe it will be an exciting time for our company.”
Bahamas Petroleum Co., November 05 2019
Petrobras completes sale of Belem Bioenergia Brasil
Petrobras, following on the press release issued on August 8, 2019, reports that its subsidiary Petrobras Biocombustíveis (PBIO) completed today the sale of its 50% stake in Belem Bioener- gia Brasil (BBB) to Galp Bioenergy, which holds the other 50% stake in the company.
BBB was established in 2011 by Petrobras and Galp to produce vegetable oil in Brazil.
After all precedent conditions were met, the transaction was completed, and PBIO is enti- tled to receive about R$ 24.7mn, which will be retained by Galp until December 2020 to offset potential indemnity payments.
This transaction is in line with the portfolio optimisation and the improvement of the com- pany’s capital allocation, aiming at generating value for our shareholders.
Petrobras, November 01 2019
P10
w w w . N E W S B A S E . c o m
Week 44 07•November•2019