Proactive One2One Investor Forum “Roadmap to Drilling”

Proactive One2OneInvestor Forum

“Roadmap to Drilling”

London, 20 February 2020

Eytan Uliel – Commercial Director

Visit our website: www.bpcplc.com

http://www.bpcplc.com/

Proactive One2One Investor Forum – London, 20 February 2020

This presentation (“Presentation”) has been prepared by Bahamas Petroleum Company plc(the “Company”) solely for its use at informational meetings with prospective investors inthe Company or its projects, and is being delivered for information purposes only to alimited number of persons. This Presentation should not be considered as the giving ofinvestment advice by the Company or any persons, including to any of its shareholders,officers or advisers. If you are in any doubt about the contents of this Presentation or theaction you should take, you should consult an independent adviser authorised to rendersuch advice.This Presentation has not been independently verified and is subject to material updating,revision and further amendments without notice. The Presentation does not purport tocontain all information that an investor in the Company or its projects may wish to receivefor the purposes of assessment or valuation of that investment and is not intended to formthe basis of any investment decision.While the information contained herein has been prepared in good faith, neither theCompany nor its shareholders, directors, officers, agents, employees, or advisors give, hasgiven or has authority to give, any representations or warranties (express or implied) as tothe achievement or reasonableness of future projections, management targets, estimates,prospects or returns contained in this presentation, or in relation to the accuracy, reliabilityor completeness of the information in this Presentation, or any revision thereof, or of anyother written or oral information made or to be made available to any investor (all suchinformation being referred to as “Information”).The Presentation is not an offer or invitation by the Company, its shareholders, directors,officers, agents, employees, or advisors to purchase, acquire or sell securities or assets, norany form of commitment, legal obligation or recommendation by the Company, itsshareholders, directors, officers, agents, employees, or advisors.So far as permitted by law, neither the Company nor any of its shareholders, directors,officers, agents, employees or advisers take any responsibility for, or will accept any liabilityin respect of, the accuracy, reliability or completeness of the Information or for any loss,howsoever arising from the use of this Presentation. In furnishing this Presentation, theCompany does not undertake any obligation to provide any additional information or toupdate this Presentation or to correct any inaccuracies in, or omissions from, thisPresentation which may become apparent.The Information is confidential information and the property of the Company. It is madeavailable strictly for the purposes referred to above. The Information and any furtherconfidential information made available to any recipient must be held in completeconfidence and documents containing such information may not be reproduced directly orindirectly, used or disclosed without the prior written consent of the Company. By acceptingdelivery of this Presentation, the recipient agrees to return it at the request of the Company.This Presentation contains certain statements which may constitute forward-lookingstatements. All statements in this Presentation, other than statements of historical facts,that address future activities and events of developments that the Company expects, are

forward-looking statements. Although the Company believes that the expectations reflectedin these statements are based on reasonable assumptions, such statements are onlypredictions and are subject to inherent risks and uncertainties and changes in the underlyingassumptions which could cause actual values, results, performance or achievements to differmaterially from those expressed, implied or projected in any forward-looking statements.Factors that could cause actual results to differ materially from those in forward-lookingstatements include market prices, continued availability of capital and financing, and generaleconomic, market or business conditions. Investors are cautioned that any such statementsare not guarantees of future performance and that actual results or developments maydiffer materially from those projected in forward-looking statements.The Company will not undertake any obligation to release publicly any revisions to theseforward-looking statements to reflect events, circumstances or unanticipated eventsoccurring after the date of this Presentation, except as required by law or by any appropriateregulatory authority. Nothing in this Presentation or in documents referred to in it should beconsidered as a profit forecast. Past performance of the Company or its shares cannot berelied on as a guide to future performance.This Presentation does not constitute, or form part of or contain any offer or invitation tosell or issue, or any offer to subscribe for, underwrite or otherwise acquire, or dispose of,any securities in the Company in any jurisdiction and is directed at, and is only fordistribution in the United Kingdom to persons reasonably believed to fall within Article 19(Investment professionals) or Article 49 (High net worth companies, unincorporatedassociations etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order2005 (SI 2005/1529) or to whom this Presentation may otherwise lawfully be distributed..Neither this Presentation nor any part of or copy of it may be taken or transmitted, directlyor indirectly, into the United States of America or Canada or distributed or re-distributeddirectly or indirectly, in the United States of America, its territories or possessions, orCanada, or to any resident thereof except in compliance with applicable securities laws. Anyfailure to comply with these restrictions may constitute a violation of applicable U.S. orCanadian securities laws. This Presentation and the information contained herein do notconstitute an offer of securities for sale in the United States. By accepting this Presentation,the recipient represents and warrants that it is a person to whom this Presentation may bedelivered or distributed without a violation of the laws of any relevant jurisdiction. ThisPresentation is not to be disclosed to any other person or used for any other purpose andany other person who receives this Presentation should not rely or act upon it.The delivery or distribution of this Presentation in or to persons in certain jurisdictions maybe restricted by law and persons into whose possession this Presentation comes shouldinform themselves about, and observe, any such restrictions. Any failure to comply withthese restrictions may constitute a violation of the laws of the relevant jurisdiction.By attending the meeting where this Presentation is made or distributed, or by reading thePresentation slides, you agree to be bound by these provisions.

Disclaimer


BPC Overview

Corporate Data

• AIM listed (Ticker BPC:AM)• Share on issue: circa 2.2 billion• Options on issue: circa 200 million

• Market cap: circa £70 million• Register: widely-held• Insider ownership: circa 14%*

• 4 commercially co-joined offshore licenses in south; 1 in north

• 12,600 km2 (>3million acres), against Cuban border

• 9,400 km2 under application secures on-trend running room; play system secured

• 100% interest; operatorship

• 12 year exploration period (4×3 years); 30 year production lease entitlement on discovery

BPC’s assets

* Includes Board and management shares, options and accrued conditional share entitlements as at 31 December 2019

Perseverance #1


Road Map to Drilling, April 2020: What To Listen For……..

Ready to drillü Team assembledü Key services and equipment procurement

progressing to planü Well design and costing definedCoordinated Funding Strategyü Implemented methodically since Sept. 2019ü Potential sources of c. $36m now established

BPC is ready for high-impact exploration drilling in H1, 2020

World-class prospectü >US$100m spentü Multi billion-barrel potentialü Only drilling well can de-risk further

Advantaged operationsü Attractive fiscal & regulatory regimeü Excellent operating location ü Strong exploration metricsü Minimum field size expectation exceeds

economic field size

Well spud in April 2020

Roadmap to Drilling• Responsive Share Price• Environmental Authorisation• Insurance• Close Out Financing • Rig Contract • Equipment Mobilisation• Rig Mobilisation• Farm-in process continues

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DELIVERING SHAREHOLDER VALUE

The story so far…. Upcoming Milestones…


World Class Prospect

5 historic wells in Bahamas• core, cuttings and logs obtained• live hydrocarbons in all wells

Over 6,000m stratigraphic column• Stacked plays. Upper Jurassic mega bank and

throughout the Lower CretaceousMapped structures over 70 kms long

• vertical relief up to 1,000 metresareal extent of total B structure > 400 km2

Multiple CPRs - 25% - 33% CoS=> Risked Mean Resource >0.4 - 1.2 billion bbls=> Risked Upside Resource >1.4 – 3.9 billion bbls

• 2011 (Ryder Scott) based on 2D• 2017 (Moyes) based on 3D

A rarely seen scale opportunity with multi-billion barrel potential

CPR/Audit Volumes - Bahamas Petroleum Value Proposition (1)

Structure (Albian, Aptian only)

UnriskedSTOOIP Recovery Factor

Unrisked Mean EUR

Chance of Success

Billion Barrels % Billion Barrels %

Fold B 5.5 20% - 25% 1.3 23% - 35%

Fold C 1.7 20% - 25% 0.4 28% - 35%

Aggregate Total 7.2 20% - 25% 1.7 23% - 35%

Aggregate Moyes and Co (2017)(2)

8.3 – 28.0 (mean – upside) 20% - 40%

1.6 – 3.3 (mean range)

5.6 - 11.0(upside range)

25% - 35%

(1) As per RyderScottCPR (2011) based upon 2D seismic only(2) Utilizing modern 2D and 3D

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ü Middle East scale structures identified from 3Dü Key source, maturity, migration pathways, reservoir and

seal parameters established

Company derived recoverable resource estimate• P50 recoverable resource 0.77 billion bbs• B Structure most likely recoverable resource > 2 billion bbls

Successful proven adjacent analogues• Florida (Sunniland), North Cuba and Mexico (Salinas basin)


One of the Top 5 global frontier exploration plays anticipated in 2020One of the very few to be drilled by a non-major

1 World Class Prospect


1 Only Drilling Can Further De-Risk

Why B-North structure chosen?

• Lowest relative prospect risk – effective top seal, preferred migration pathway & charge attributes

• P50 resources:=> 0.7 billion bbls; upside of 1.4 billion bbls

• Entire B Structure:=> most likely resource > 2 billion bbls

• Effectively de-risked by Perseverance #1 success

Perseverance #1

Perseverance #1

Entire B Structure over 70 kms long

Strong amplitude conformance to structure - indicative of hydrocarbon presence


The Bahamas represents an advantaged regulatory and operating environment

Advantaged Operations

• Modernised and strengthened regulations now in placeü New Petroleum Act and associated regulations enacted in 2016, including Sovereign Wealth Fund Legislationü No domestic-use obligations

• Commercially Robust

ü Fiscal terms embodied in licence agreements - includes stabilization clause

ü Net contractor-take consistent with frontier, new basin entryü Modest water depths c.500m (1,500 ft.)

ü Low minimum economic field size at c. 200 million barrels at current prices

ü Estimated break even price: $30 - $40 / bbl

• Independent, sovereign democratic nation

ü A Westminster-style democracy - Queen is titular head of state. Final court of appeal is privy council, London

ü Commonwealth - Full member; Member of CARICOM ü Active and well regulated financial services sector

• Proximity to services and infrastructureü Services and provisioning from Fourchon

ü c.200 miles to world’s largest energy infrastructure/market, refining capacity, contractors, services & suppliers

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Executive (UK / Bahamas)

Simon PotterCEO & MD

Qualified geologist; 40 years oil & gas / mining sector;ex-BP 20 years; TNK-BP; CEO: Hardman, Dart Energy

Eytan UlielCommercial Director

25 years O&G / resources & commercial experience, CCO / CFO - Arrow / Dart

Ben ProffittFinance Director

10 years O&G / resources experience, qualified CA, Company Secretary

Operations

Nathan RaynerOperations Lead

25 years exploration, drilling, development & production experience, Arrow, COO - Dart, Armour

Randolph HiscockTechnical Lead

30 years exploration, new ventures/business development experience, geologist, ex-Shell

David ThomasWellsite Geologist

20 years international experience operations, MWD/LWD engineer, ME locations & carbonates

Jobeth Coleby-DavisLegal Counsel

10 years experience, specialist Bahamian O&G regulatory expertise, member of the Bahamas Senate (Upper House)

Roberta Quant Environment Manager

10 years experience, ex-Bahamas Environment, Science & Technology Commission postgraduate ocean engineering and environmental qualifications

Drilling (team based in Houston)Dave BondDrilling Director

35 years international experience in offshore drilling,senior roles incl. Ophir, Woodside, BHPP, Conoco

Richard TurnerDrilling Manager

Mike MarshallDrilling Supervisor

Bill RichmondDrilling Supervisor

Charles BrownSnr. Drilling Engineer

Buzz CoonsLogistics Manager

40 years managing complex international drilling operations with majors/independents, Ophir, BP, Conoco

35 years international drilling supervision and engineering with Repsol, Ophir, Conoco

40 years senior drilling supervisor, multiple wells globally, and in Australia with Ophir, Anadarko

35 years drilling engineering in multiple locations with multiple majors

35 years drilling logistics, multiple locations with majors and large independents

Jane BondSubsurface Manager

20 years experience in geology, geophysics, petrophysics and reservoir engineering with Shell, Woodside, Ophir

A strong team is in place, capable of delivering the well

• Deep international operating experience, matched with strong domestic Bahamian capability

• Experience and delivery track-record with global majors and entrepreneurial juniors

• Temporary Houston Operations Office fully staffed

3 Ready to Drill


Contracting for essential services and equipment proceeding to plan

3 Ready to Drill

ü Leading international providersü Rates / pricing established – providing

assurance on well cost estimates

ü Integrated Well Services team in Houstonü Service from Port Fourchon and Miami


• Test 3 and 4-way dip closures on anticlinal/fault structure for the presence of hydrocarbons. Multiple potential hydrocarbon reservoirs

• Well trajectory within all horizon enclosures

• Rate of Penetration (ROP) is key. Weight on bit/hybrid bit design

• While drilling, LWD / MWD tools record rock properties, such as electric, sonic, density, porosity, pressures & fluid types (water, oil or gas)

• Additional tools available to collect fluid samples and side wall cores if required, as well as measure pressures and temperature

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B North Structure

Perseverance 1

Well Details• Depth 4800m to 5600m• Drill time: 45-60 days, plus mob / demob• Estimated cost: $25m - $30m (+ potential

$5m contingencies / expanded testing)• Expected spud: April 2020

Proposed Perseverance 1 Well Profile

Ready to DrillA clearly defined well objective => to identify the presence of hydrocarbons


BPC has implemented a coordinated and principled capital strategy based on:• Ensuring funding needed is available as and when required• Minimizing resulting shareholder dilution• Seeking capital that enhances strategic capability• Creating maximum flexibility whilst avoiding reliance on any one source of capital

4 Capital Strategy

CAPITAL STRATEGY MILESTONES TO-DATEü September 2019: Shareholder authority to issue 1.8 billion sharesü October 2019: $4.3m* Open Offerü November 2019: $7.1m* Placing• November 2019: £10.25* convertible note (subject to satisfaction of conditions by 9/3/20)ü January 2020: $0.9m* Bahamian fund initial subscriptions ü February 2020: £8m* zero coupon 2nd rank unsecured convertible (staged through drilling)

• Dilution limited to 1.2 billion shares• Continued evaluation to reduce capital costs• Farm-in process continues

Total potential capital sources of $36m; to be deployed against well cost estimate $25-30m (plus potential $5m increment for contingencies / expanded testing based on real-time drill results)

* Before fees and transaction costs


Key Milestones in the Lead-up to Drilling

Roadmap to Drilling: Upcoming Milestones

1. Environmental Authorisation2. Insurance policy placement3. Rig contract4. Close out capital strategy5. Equipment mobilisation in port6. Rig mobilisation7. Farm-in progress (?)

MOBILIZATION late March / early April

SPUD expected in April 2020

DRILL45 – 60 days

RESULTSH1, 2020

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• Event driven; multiple re-rating opportunities

Reactive Share Price


2019September AGM

H1, 2020Operations

Mid – H2, 2020Multiple Well DecisionAppraisal Upside

Drillingoutcome

Drilling

Buildup to

Drilling

BPC: Delivering Shareholder Value‘Giant’, Middle-East scale structures

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• Medium-term upside (6 months)ü Strong news flow

• Rig mobilization and drilling• Multiple target horizons

ü Successful well outcome - discovery• Multiple billion barrel potential• Appraisal upside

• Longer-term upside (12 months +)ü Follow-on potential, considerable running

roomü Ongoing interest to majorsü Frontier E&P platformü Strategic expansion – leverage core skillsü Opportunities identified, track record,

proven team in place

Clear value creation milestones

THE NEXT 6 MONTHS WILL BE A COMPANY MAKING TIME FOR BPC

Proactive One2One Investor Forum “Roadmap to Drilling”

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