BPC this morning announce a proposed Open Offer and Placing as well as a change of name to Challenger Energy Group PLC. This is intended to ‘lay the foundations for building shareholder value elsewhere across its expanded portfolio, predominately by increasing production, and hence cashflow, from operations in Trinidad and Tobago and Suriname.

Eytan Uliel, currently commercial director, will become the company’s new chief executive and Simon Potter is to transition to a non-executive director role, effective from May 20.

The company is to raise £6.9mln with an open offer to qualifying shareholders, issuing some 1.96bn new shares priced at 0.35p. Shareholders will be able to buy 1 new share for every 2.46 shares they hold. Any shares not taken up will be sold to institutional investors at the same price.

The equity issue will be followed by a 1:10 share consolidation.

Bill Schrader, Chairman of BPC, said:
“The Company is focussed on restoration, renewal and refreshment. In this context, the Company’s forward business strategy for the coming 12-18 months has been firmly set, on significantly increasing oil production and thus cashflow from our assets in Trinidad and Tobago and Suriname, which the Board considers to be the most effective manner in which to restore value and create a foundation for future value growth. In support of this strategy, the Company is calling an Extraordinary General Meeting, to put before shareholders a series of actions with a view to ‘resetting’ the Company and its capital structure, along with a recapitalisation of the Company and a cost reduction initiative.

At the same time, as a part of a natural renewal process and in adherence with best practices for corporate governance, changes are being implemented to the Company’s board and management. I would like to welcome both Eytan Uliel and Stephen Bizzell on their prospective appointments to the Board, as respectively CEO and non-executive director. Shareholders will already be familiar with the contribution of Eytan to the organisation over the last seven years, and Stephen is highly credentialled in the industry, having successfully assisted many similar companies with significant capital raisings and transformational corporate transactions, as well as having actively supported the funding of this Company for the past two years. Simon Potter stays with us as a non-executive director, where his skills and experience remain available to the organisation.  I would like to thank both Ross McDonald and Adrian Collins, who will be leaving the Board, for their valued contributions, over respectively the last nine and ten years. Finally, a huge expression of appreciation for the work undertaken by Ben Proffitt over the last twelve years in support of both the Board as Company Secretary and to the Company as Finance Director – we wish him luck as he embarks on the next stage of his career.

Taken together, the steps being announced today represent what the Board considers to be a coordinated approach to charting a viable and value-restorative future course for the Company. We thank shareholders for their ongoing support, and we look forward to providing updates as to our progress over the coming months.”

Eytan Uliel, CEO designate, said:
“Our Company has a diverse full-cycle portfolio of production, development and exploration assets. The work program for 2021 and beyond is busy, and contains many value triggers. The re-set proposed today will enable us to get after that value, through building production and cashflow. I am excited by the prospect of leading Challenger Energy Group, and I look forward to engaging with all our stakeholders over the coming months.”

KeyFacts Energy: BPC Bahamas country profile