Technical Information
A major milestone of 2011 was the acquisition and receipt of
initial processing of nearly 3,075km of 3D seismic in the Southern
Licence area.
Highlights
During the year Bahamas Petroleum Company has
seen significant advances in its exploration programme. The focus
during 2011 has been to gather the data and complete the technical
studies needed to understand the petroleum system and to further
reduce the geologic risk. The Company is now at the point where the
only remaining step that will further materially impact risk is to
drill a well.
Accordingly, as we move into 2012, our focus has shifted to
completing the work required to finalise locations and more
importantly to completing the studies necessary to plan and to
safely execute the drilling of our initial obligation well.
2D Seismic
In 2010 and 2011 the Company undertook the first modern seismic
in the southern Bahamas since 1987. Over 1,120 line kms of 2D data
was acquired, processed and interpreted. These data revealed the
presence of very large structures with 4-way closure ranging in
length from 10 to 75 kilometres. These structures represent the
foreland basin province of the Cuban overthrust belt.
| Structure Top Cretaceous showing folds:
A B C & D PST M 2D |
|
2D Generated Seismic
Cross-section |
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|
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Please click here to view larger
images
New Licence Applications
Based on the interpretation of the 2D seismic, the Company
applied for two additional licences in the Santaren Channel. Thus
in total the Company now has five licence applications currently
under review by the Bahamian Government; two 100% Bahamas Petroleum
Company and three joint applications with Statoil. In the joint
venture with Statoil an Environmental Feasibility Study (EFS) has
been submitted and is currently under review by the BEST Commission
and their consultants. A decision on these applications is
not expected until after the 2012 election.
Competent Persons Report
Based upon the acquired 2D, an independent assessment of the
hydrocarbon potential in the Bain, Cooper and Donaldson licences
was prepared by Ryder Scott Company and released July 2011. Ryder
Scott's evaluation documented that three of the four structures,
Folds A, B and C, have an unrisked potential in excess of 1 billion
barrels of recoverable oil. The report also addressed the
chance of success for each structure with the COS ranging from 23%
to 35% over most intervals. This report validates the vision of our
founder, Alan Burns, that The Bahamas have the potential to be a
significant oil province. It is important to note that the CPR
dealt only with the Aptian through Top Cretaceous interval.
The Company believes considerable additional potential also exists
in the shallower Tertiary section, in stratigraphic traps off
structure and in the deeper Upper Jurassic section.
Fugro Sea Bottom Survey
In June and July Fugro Geosciences were contracted to collect
nearly 5,000 line kms of high-resolution multibeam, back scatter
and sea bottom profile data. These data were used to help
plan the 3D acquisition and will be required for completion of an
Environmental Management Plan (EMP) in compliance with
regulations. The data are currently being interpreted to
prepare the drilling hazard evaluation of several potential drill
sites on Fold B.
Preparing to Drill
Bahamas Petroleum Company have engaged a drilling service
Company to act as project manager to plan and, as applicable,
execute the drilling of our first exploration well. This activity
will be divided into three main phases; Front End Engineering and
Design (FEED); Procurement; and, Project Execution. Applied
Drilling Technology Inc (ADTI) has been awarded the contract and
has already commenced work on the first phase. The main
deliverable from this work will be a Drill Plan including a plan
for operations, logistics and support as well as an executable plan
with safety and environmental components consistent with
international waste and emissions standards a well as response
plans for
envisaged emergency situations. The plan will identify long lead
time items for well implementation to ensure the schedule stays on
track to discharge the programme with licence
obligations.
2012 will be an active year for Bahamas Petroleum Company as we
finalise potential well locations. The government will be working
to refine the regulatory framework that governs oil and gas
activity. The Company is aligning itself with the best practices of
Norway, the UK and the US. All parties are committed to sustainable
practices and responsible exploration
Data Room
We reopened our data room for the month of May and allowed
parties who have demonstrated serious interest the opportunity to
review aspects of the 3D. There continues to be high interest
and we are committed to securing a partner prior to drilling.
Negotiations have taken longer than initially anticipated; possibly
due to potential partners waiting to see election results or the
results of drilling currently underway in Cuba. As we move forward
with these negotiations we remain mindful of getting appropriate
value for our shareholders and for staying on track to meet our
licence requirements regarding drilling.
Competitor Activity
In the coming months the Company will have potentially benefited
from the results of extensive drilling activity being undertaken in
Cuban waters. The Scarebeo 9 drilling rig commenced activities in
late January with a minimum of 5 wells anticipated to be drilled
through 2012/3. The first well was operated by Repsol and was
plugged and abandoned as a dry hole. In addition, Zarubezhneft, the
operator of the Cuban licence immediately adjacent to The Bahamas
Petroleum Company southern licence blocks has contracted a rig and
expects to begin drilling in November following their recent 3D
seismic survey. 2012 will be an active year for Bahamas Petroleum
Company as we finalise potential well locations and begin moving in
earnest toward drilling. Bahamas Petroleum Company and the
Government are working on parallel paths. The Government is working
to put the regulations in place to govern oil and gas activity. We
are aligning ourselves with the best practices of Norway, the UK
and the US as we prepare to drill. Both parties are committed
to responsible exploration and preserving the environment for
future generations.
