Bahamas Petroleum advances on Govt go-ahead for drilling

Shares in AIM-listed Bahamas Petroleum soared on Monday following the news that the government of the Bahamas had decided to permit the company to undertake exploration drilling ahead of any referendum process.

Shares in AIM-listed Bahamas Petroleum soared on Monday following the news that the government of the Bahamas had decided to permit the company to undertake exploration drilling ahead of any referendum process.

The company said the government's decision provided "clarity on the timing and process of exploration".

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

The exploration drilling was designed to establish the commercial viability ahead of a referendum process on the future of oil development, allowing the people of The Bahamas the data from which to make an informed decision, the company said.

The initial drill location contained "significant prospectivity at multiple stratigraphic horizons", which had been further derisked based upon 3D seismic data interpretation, it added.

Advertisement - Article continues below

A statement issued by the company said: "Bahamas Petroleum Company notes and welcomes the announcement made on 10 March by the Minister for Environment and Housing which sets out the decision of the government of The Bahamas to defer any referendum on the future of oil development in The Bahamas until after the exploration drilling phase, allowing the Bahamian people the data from which to make an informed decision on the framework for energy industry activities.

"With its decision to proceed with exploratory drilling, the government has demonstrated a responsible approach both to the industry and to potential future investors. Any subsequent referendum will only be conducted once the presence and scale of petroleum reserves is established."

Bahamas Petroleum's share price was up by 36.84% to 6.50p at 08:55 on Monday.




Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020
Share tips

Class acts going cheap: buy into Europe’s best bargains

Value investing appears to be making a comeback, while shares on this side of the Atlantic are more appealing on metrics such as price/earnings ratios…
16 Jan 2020

Most Popular


Extraordinary times create extraordinary opportunities – these assets look cheap

With the stage set for some monumental fiscal stimulus, this is most definitely a time to own some gold. And if you’re bold enough, says Dominic Frisb…
18 Mar 2020
Government bonds

The corona crisis will mark the end of the longest-running trend in markets

With politicians and central bankers enthusiastically embracing money printing and a recession almost certainly not too far off, the slide in bond yie…
20 Mar 2020
Global Economy

The MoneyWeek podcast – The end of capitalism?

John and Merryn talk about the – hopefully temporary – suspension of capitalism as government stimulus takes off in a big way. Plus, how this crisis m…
18 Mar 2020

Why investors shouldn’t overlook Europe

SPONSORED CONTENT - Ollie Beckett, manager of the TR European Growth Trust, tackles investor questions around Europe’s economic outlook and the conseq…
6 Nov 2019