We are: Forging Relationships

The Board of Bahamas Petroleum Company wishes for all Bahamians to be able to invest in the future anticipated capital growth of the Company and is therefore seeking a separate listing on BISX. Currently, the Bahamian Exchange Control Regulations essentially preclude Bahamian nationals from investing in and thus trading in securities of a company whose shares are listed overseas, denominated in a foreign currency and therefore attract significant regulatory fees. The listing will be completed in the form of a Bahamian Depository Receipt (BDR) in which Bahamian residents can invest without these charges.

Energy exploration carries with it geological risk. Thus investment in exploration companies carries with it an additional technical risk over and above those risks already inherent in the investment of other Company shares. For energy exploration start-up companies, as Bahamas Petroleum Company used to be, this requires a further specific understanding of and appetite for these unique types of stocks. In addition, the volume of capital Bahamas Petroleum Company requires to undertake expensive and risky exploration activity is large and therefore requires the kind of deep, liquid pool of capital available from somewhere like the London Stock Exchange. To date, Bahamas Petroleum Company has raised in excess of $80 million to conduct its operations.

The Central Bank of The Bahamas and The Securities Commission of The Bahamas have approved the creation of a type of security called a Bahamian Depositary Receipt (BDR), denominated in Bahamian dollars. A BDR permits Bahamian investors to acquire interests in non-Bahamian securities without additional expenses.  Bahamas Petroleum Company deposits a number of its securities (shares) with a Bahamian financial institution. That bank will then issue  Depository Receipts which entitle the holder to all of the benefits of those shares deposited with the bank.  The BDRs are priced based on the value of the underlying shares on their home exchange (i.e. for Bahamas Petroleum Company the London Stock Exchange AIM Registry), however, it is not necessary for the BDRs to have a one-to-one correspondence with their underlying security.

Given the anticipated size of the potential market and appetite for Bahamas Petroleum Company stock, rather than issue new shares it is cheaper, more flexible and faster to deal in BDRs, which cause no dilution to existing shareholders of Bahamas Petroleum Company, with the volume of securities created varied directly based upon demand. The offer and issuance of Bahamas Petroleum Company BDRs is dependent on permission from The securities Commission and BISX. Once listed, BDRs trade through local brokers just like the shares in other listed local companies.  Authorised Bahamian brokers-dealers may decide to make a market for BDRs on BISX with the intention to enhance liquidity.

Holders of BDRs have substantially the same rights and benefits as persons holding the underlying securities. For instance, if the underlying securities carry voting rights, the holders of the BDRs will retain the same voting rights.

Bahamas Petroleum Company is currently fully-funded for its forward work programme, is not raising new capital from Bahamian investors and therefore there is no capital target. The pursuit of this listing is simply to afford Bahamians the opportunity to invest in and financially benefit from any future value growth in Bahamas Petroleum Company securities whilst sharing in the ownership of the Company. All necessary capital to conduct planned operations was raised through shareholders in London who supplied the original seed and risk capital. Any Bahamian investors who choose to buy into the Company BDR programme will benefit from all past use of this risk capital.