March 11 Bahamas Petroleum Co Plc said
its farm-out talks with interested parties had been given a
boost after the government of the Bahamas decided to defer a
referendum on the future of offshore oil exploration in the
Shares in the company were up 53 percent at 7.28 pence at
0814 GMT, making them among the top percentage gainers on the
London Stock Exchange.
The government said on Sunday a referendum would only be
conducted once the presence and scale of petroleum reserves had
been established, allowing Bahamas Petroleum to proceed with
"Farm-out discussions remain ongoing with a number of
interested parties and this clarification of the consultation
process provides significant impetus and clarity for potential
farm-in partners," Bahamas Petroleum said in a statement.
A farm-out is when a company sells an interest in an asset
to a third party.
The company had its oil drilling permits renewed by the
government in September, ending months of speculation that they
would not be extended.
At the time, the company said drilling a well would depend
on the outcome of the referendum as a result of which it would
not be required to drill a well before April 2013.