July 22 Bahamas Petroleum Co Plc said
the Bahamas environment ministry had extended the company's five
exploration licences by a further three years and that it was
continuing farm-out talks with interested parties to raise money
to begin drilling an exploration well.
Shares in the company rose as much as 20 percent to 4.6
pence at 0720 GMT on Monday on the London Stock Exchange.
The agreement extends the term of the licences to 2016 and
requires the company to begin drilling an exploration well by
The original term of the licences expired last April,
following which there was uncertainty over whether they would be
renewed as politicians used offshore oil exploration as a
rallying point during elections last year.
But the ruling party, which was not in favour of oil
exploration, was ousted and the company's permits were extended
by the newly elected government in September, with the drilling
of a well subject to a referendum.
Earlier this year, the company's farm-out talks with
interested parties were given a boost after the government
decided to defer a referendum on the future of offshore oil
exploration in the country, allowing Bahamas Petroleum to
proceed with exploratory drilling.
A farm-out is when a company sells an interest in an asset
to a third party.
(Reporting by Abhishek Takle in Bangalore; Editing by Supriya