Shares in AIM-listed Bahamas Petroleum soared on Monday following the news that the government of the Bahamas had decided to permit the company to undertake exploration drilling ahead of any referendum process.

The company said the government's decision provided "clarity on the timing and process of exploration".

The exploration drilling was designed to establish the commercial viability ahead of a referendum process on the future of oil development, allowing the people of The Bahamas the data from which to make an informed decision, the company said.

The initial drill location contained "significant prospectivity at multiple stratigraphic horizons", which had been further derisked based upon 3D seismic data interpretation, it added.

A statement issued by the company said: "Bahamas Petroleum Company notes and welcomes the announcement made on 10 March by the Minister for Environment and Housing which sets out the decision of the government of The Bahamas to defer any referendum on the future of oil development in The Bahamas until after the exploration drilling phase, allowing the Bahamian people the data from which to make an informed decision on the framework for energy industry activities.

"With its decision to proceed with exploratory drilling, the government has demonstrated a responsible approach both to the industry and to potential future investors. Any subsequent referendum will only be conducted once the presence and scale of petroleum reserves is established."

Bahamas Petroleum's share price was up by 36.84% to 6.50p at 08:55 on Monday.

MF

Related share prices
Bahamas Petroleum Co (BPC) share price