Bahamas Petroleum Company plc has entered into a Confidentiality and Exclusivity Agreement with a major international oil company to conclude a detailed technical evaluation of the Company's licences in The Bahamas, and at the same time seek to develop a commercial framework for a potential transaction.
 
Whilst to date the Company has been working with a number of major oil companies in conducting an evaluation of the Company's licences with a view to concluding a mutually beneficial commercial transaction, under the terms of this Agreement, the Company and the Counterparty will now work exclusively together for at least the next three months. The Company will receive a non-refundable cash payment of US$250,000 per month (US$750,000 in aggregate) for the initial three-month period of exclusivity with an additional US$250,000 per month for any extended period of exclusivity, such extension at the option of the Counterparty, up to a maximum of a further three months. These amounts will be reflected in BPC's income statement as and when received. Unless and until a definitive farm-in or other commercial arrangement is agreed with the Counterparty, its identity will remain confidential. Given the exclusivity arrangements provided for in the Agreement, discussions and negotiations with other potential partners have been suspended for the time being.
 
It is noted that despite entry into the Agreement, no assurance can be provided that a commercial transaction will ultimately be concluded with the Counterparty, or on what terms, or in what timeframe. The Company will provide further updates as required.
 
Simon Potter, Chief Executive Officer of Bahamas Petroleum Company, said:
"The decision to enter into an exclusivity agreement with a reputable international industry operator is a significant step in our ongoing process to secure a partner for our highly prospective assets in The Bahamas. We look forward to working closely with the Counterparty over the coming months, and we will update the market of any material developments as and when appropriate."