Bahamas Petroleum Co abandons Perseverance-1

Bahamas Petroleum Company (BPC) has halted work on and plugged the Perseverance-1 well after the discovery of hydrocarbons proved to be of a non-commercial volume.

According to CEO Simon Potter, “I am proud to say that after many years of diligent effort we did what we said we would do: BPC drilled the Perseverance #1 well safely and without incident, testing for the presence of hydrocarbons in the southern seas of The Bahamas. This was the very specific objective of the well — not a scientific or geologic experiment, but to seek hydrocarbons in commercial quantities.”

CEO of Bahamas Petroleum Company Simon Potter (File photo)

Diving into details

Following the completion of drilling, BPC said it will, in short order, “undertake a detailed evaluation of all technical information” gathering during the process, the results of which “may provide a strong technical basis for renewed farm-in discussions” on the acreage.

In particular, the company said it will explore the best possible means by which to finance its operations in The Bahamas, including renewal of a farm-in process.

Bahamas Petroleum Company signage and logo (File photo)

“In a technical sense, the well successfully validated the existence of oil, seal and reservoir. Together, these factors verify the existence of a working lower cretaceous petroleum system and sequences of reservoir quality …pointing to the overall hydrocarbon potential of other untested prospects captured by BPC’s extensive acreage holding. However, at the Perseverance #1 location the volumes of oil encountered are not commercial,” Potter explained.

He also outlined that the analysis of the results will prove invaluable as it will reduce technical risks with any future exploration in the territory.

(File photo)

Portfolio performance

In accordance with its licence obligations, BPC will also share the details of the drilling with the Government of The Bahamas, before shifting its focus to 2021 programme of activities. At present, the company’s portfolio includes oil-producing wells in Trinidad and assets in Suriname.

BPC spudded Perseverance-1 with the Stena IceMax on December 20 last year with the aim of reaching 4,800 metres in depth and discovering a minimum of 770 million barrels of oil equivalent. However, by February 6 the drillship reached 3,900 metres, only to discover non-commercial volumes.

The company’s shares dipped 65 per cent in value last week Monday after news broke of the non-commercial find.