Bahamas Petroleum Company provides the following market update.
•New Bahamian Petroleum Act legislative package introduced to the Bahamian Parliament's House of Assembly which is expected to have its second and third readings, and become law, in near future
•Fluid inclusion analysis on three historical wells drilled in The Bahamas demonstrates presence of an active petroleum system in vicinity of sizeable 3D defined structures targeted for drilling within the Company's acreage
•Company's first exploration well re-engineered, which with greatly reduced rig rates has reduced anticipated exploration well costs substantially, such that the Company is now targeting a total cost in the range of US$50 million - US$60 million for this well
•Updated economic studies indicate a minimum field size for economic development of less than 200 million barrels (versus current resource estimates measured in billions of barrels), and robust profitability even in the current oil price environment
•2014 year-end cash reserves in excess of US$10 million, annualised G&A reduced significantly, management reviewing further cost reductions