In the lead-up to the drilling of Perseverance-1, BPC's obligation exploration well in The Bahamas, the Company provides the following update on preparations for well operations. 

Highlights

• Perseverance-1 is on track to spud before the end of 2020:
  • 100% equity to BPC, drilling of this potential basin-opening well anticipated to take between 45 and 60 days, with 'tight-hole' procedures in place
  • targeting recoverable prospective resources of 0.7 billion barrels of oil , with an upside of 1.44 billion barrels, solely for the northern portion of the B structure
  • in the event of success, Perseverance-1 would substantially de-risk the total B structure, which extends for between 70 and 80 kms, has a mapped areal closure of over 400 km2, and has a 'best estimate' aggregate recoverable resource potential in excess of 2.0 billion barrels
• The Stena IceMAX, one of the most technically capable drill ships in the world, has completed all necessary vessel and equipment inspections, and is scheduled to leave dock in The Canary Islands before the end of November 2020, heading to location in preparation to drill the well
• Specific transportation procedures, isolation mandates and quarantine protocols are in place to minimise any risk of Covid-19 disruption to the operation, supplementing comprehensive, approved environmental safety standards and procedures; the Bahamas Defence Force and US Coastguard have been briefed on operating and safety preparations
• All material contracts and supply arrangements completed, logistics and mobilisation plans finalised
• Formal confirmation from the Government of The Bahamas of a further extension of the 2nd exploration period of BPC's licences, from mid-April 2021 to the end of June 2021, reflective of the ongoing impacts of the Covid-19 force majeure
• Within BPC, the outcome of the Perseverance-1 well is now set within the strategic context of a portfolio business, with production and cashflow generating assets and a growing opportunity set of complementary assets across multiple jurisdictions

Map source: BPC

Commenting, Simon Potter, CEO of BPC, said:
"Many shareholders have been extremely patient and have stayed the distance, as has the majority of the management team, and we are now in the position to deliver the Perseverance #1 exploration well in compliance with our long-held exploration licences in The Bahamas. Perseverance #1 is a potentially basin-opening well, with the kind of scale and associated value uplift exposure rarely offered outside of oil majors.

At the same time, our activities, in the event of success, have the capacity to be economically transformative for the nation of The Bahamas, and could ultimately contribute billions of dollars in royalty revenues to the national treasury, at a time when the dual impact of recent hurricanes and the Covid-19 pandemic has been especially hard-felt by most Bahamians. Many other nations in the region such as USA, Mexico, Trinidad and Tobago, Suriname and Guyana, have over the past decade safely and responsibly drilled offshore wells, developed or continue to develop offshore hydrocarbon resources, and reaped the economic benefits of an established or a whole new industry. Moreover, these other nations have been able to do so at the same time as seeing growth and development of existing industry sectors, such as tourism.

BPC is fully committed to ensuring safe and responsible operations, and has assembled an experienced team of drilling personnel, supported by many of the world's largest and most respected oil services contractors, with a collective track record of drilling many thousands of wells safely, all around the globe. We are especially pleased that one of the most modern, technically capable drilling vessels in the world will soon leave port ahead of drilling. In support of this, logistics plans to mobilise both equipment and personnel safely to site have been finalised, funding is in place, and we have completed a huge body of work to ensure that best practices have been applied as our health and environmental safety plans and protocols have been developed, contracted, and approved.

I look forward to updating shareholders of our continued progress - this is an exciting time for BPC."

About Perseverance-1 Well

Perseverance-1 is an offshore oil exploration well, 100% owned and operated by BPC, to be drilled starting in late 2020 at a location in the far southern territorial waters of The Bahamas, adjacent to the Cuba-Bahamas maritime border. The well site is located within the Santaren Channel, a deep-water seaway that is already a major oil transhipment thoroughfare, through which oil super-tankers pass daily carrying millions of barrels of crude oil to oil facilities in The Bahamas and beyond (The Bahamas is already a significant player in the international oil industry, home to some of the world's largest oil storage facilities). The Perseverance-1 well site is located more than 90 miles from the nearest inhabited Bahamian islands and over 40 miles away from the nearest uninhabited Bahamian islands, yet less than 200 miles from the infrastructure, services and customers of the world's largest energy market (the US Gulf of Mexico).

The Perseverance-1 well is targeting the northern segment of the B megastructure as previously identified by 3D seismic analysis. This location has been chosen, based upon high resolution 3D seismic data, as the best balance of lowest technical risk, geological conditions and recoverable volumes at the crestal point on the northern segment of the very large B structure. The well will be located in water approx. 520 metres deep, and will be drilled to a target depth of 4,822 metres, but with a capability to be able to reach 5,600 metres, affording the ability to evaluate multiple reservoir horizons throughout the entire stratigraphic column below the Tertiary cover. The ultimate decision on well depth will depend on real-time drilling results and geological information.

The best estimate prospective recoverable oil resource at the Perseverance-1 location is 767 million barrels, with an upside of 1.444 billion barrels (assuming the same recovery factor). It is anticipated that any discovery at this location has the potential to extend into a larger portion of the overall B structure extending to the south-east. In aggregate, the entire B structure extends for approx. 75 kms along strike and accommodates over 400 km2 of mapped closure with the entire structure having a combined 'best estimate' prospective resource of in excess of 2.0 billion barrels, and gross column height of up to 1,000 meters.

In accordance with Bahamian law and the terms of BPC's licences, as a precursor to drilling operations BPC was required to prepare and submit a comprehensive Environmental Authorisation to the Government of The Bahamas, inclusive of a detailed Environmental Impact Assessment and Environmental Management Plan. This was reviewed for the Government of The Bahamas by independent third-party industry experts, and certified to be in compliance with not only all applicable Bahamian laws and regulations, but consistent with all applicable international standards, guidelines, regulations and global best practice. Following that review, BPC's proposed drilling program for Perseverance-1 was approved by the Government of The Bahamas, and Environmental Authorisation was granted. The approvals obtained relate specifically to the drilling of Perseverance-1, such that in the event of success, drilling of any subsequent wells in The Bahamas will be subject to a separate and equally exhaustive approvals process.

Perseverance-1 will be drilled making use of the Stena IceMAX, one of the most technically capable, advanced drill ships available in the world. The rig is dynamically positioned, dual-derrick, has an integrated Managed Pressure Drilling system on board and an advanced well management and safety system, which will be deployed for the duration of drilling. Befitting of the transformational, flagship nature of this well, a number of leading international oilfield companies will be providing equipment and specialist technical services for various aspects of the drilling program, including Halliburton, Schlumberger, BakerHughesGE and Weatherford.

The drilling program for Perseverance-1 is expected to take between 45-60 days, and will be undertaken on a 'tight-hole' basis - an industry protocol (and one required by the Government of The Bahamas) whereby real-time well information and drilling results will generally be kept confidential until the conclusion of drilling and testing procedures, and until any appropriate notifications to Government representatives have been made. The well has been designed specifically as an exploration well, with the sole objective of establishing the presence of hydrocarbons through a range of tests that will be conducted as the well is drilled. Perseverance #1 has not been designed to ever operate as a production well, such that at the conclusion of the drilling program the well will be permanently sealed and then abandoned.

KeyFacts Energy: BPC Bahamas country profile