Bahamas Petroleum Company is pleased to provide the following market update.

Highlights •Bahamas Petroleum has agreed upon the terms of a Licence Renewal Addendum in relation to its four southern licences ◦Current term of licences extended to 2Q 2018 ◦Drilling commencement date extended to April 2017 ◦Southern boundaries of these licences formalised up to The Bahamas - Cuba Maritime boundary ◦All work undertaken in individual licences offsets against adjacent licence obligations ◦Other licence terms and conditions remain intact and unaffected ◦Bahamas Petroleum acknowledged as having satisfied all obligations in respect of all licences, the Regulations and the Act ◦Licences grandfathered under the current Petroleum Act

•The Minister of Environment and Housing has indicated publicly that the second reading of the revised Petroleum Act and attendant Regulations was scheduled to be presented to the Bahamian House of Assembly on 13 May 2015 but was postponed. The next sitting of the House is currently scheduled for 20 May 2015 •Existing applications for new licences resubmitted consistent with strategic and technical focus ◦Focuses acreage holding consistent with technical access and major play trends ◦Reduces potential overlap with proposed Cay Sal National Marine Park ◦Renewal of Northern Licence (Miami)under review

Tags: Bahamas Petroleum Company