introductory materials for shareholders

IntroductoryMaterialsforShareholders

June2017

Visit our website: www.bpcplc.com

BPCIntroductoryMaterialsforShareholders– June2017

This presentation (“Presentation”) has been prepared by Bahamas Petroleum Company plc (the“Company”) solely for its use at informational meetings with prospective investors in theCompany or its projects, and is being delivered for information purposes only to a limitednumber of persons. This Presentation should not be considered as the giving of investmentadvice by the Company or any persons, including to any of its shareholders, officers oradvisers. If you are in any doubt about the contents of this Presentation or the action youshould take, you should consult an independent adviser authorised to render suchadvice.This Presentation has not been independently verified and is subject to materialupdating, revision and further amendments without notice. The Presentation does notpurport to contain all information that an investor in the Company or its projects maywish to receive for the purposes of assessment or valuation of that investment and is notintended to form the 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,has given or has authority to give, any representations or warranties (express or implied)as to the achievement or reasonableness of future projections, management targets,estimates, prospects or returns contained in this presentation, or in relation to theaccuracy, reliability or completeness of the information in this Presentation, or anyrevision thereof, or of any other written or oral information made or to be madeavailable to any investor (all such information 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,nor any 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 anyliability in respect of, the accuracy, reliability or completeness of the Information or forany loss, howsoever arising from the use of this Presentation. In furnishing thisPresentation, the Company does not undertake any obligation to provide any additionalinformation or to update this Presentation or to correct any inaccuracies in, or omissionsfrom, this Presentation 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 directlyor indirectly, used or disclosed without the prior written consent of the Company. Byaccepting delivery of this Presentation, the recipient agrees to return it at the request ofthe 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, areforward-looking statements. Although the Company believes that the expectationsreflected in these statements are based on reasonable assumptions, such statements are

only predictions and are subject to inherent risks and uncertainties and changes in theunderlying assumptions which could cause actual values, results, performance orachievements to differ materially from those expressed, implied or projected in anyforward-looking statements. Factors that could cause actual results to differ materiallyfrom those in forward-looking statements include market prices, continued availability ofcapital and financing, and general economic, market or business conditions. Investors arecautioned that any such statements are not guarantees of future performance and thatactual results or developments may differ 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 anyappropriate regulatory authority. Nothing in this Presentation or in documents referredto in it should be considered as a profit forecast. Past performance of the Company or itsshares cannot be relied 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)Order 2005 (SI 2005/1529) or to whom this Presentation may otherwise lawfully bedistributed.. Neither this Presentation nor any part of or copy of it may be taken ortransmitted, directly or indirectly, into the United States of America or Canada ordistributed or re-distributed directly or indirectly, in the United States of America, itsterritories or possessions, or Canada, or to any resident thereof except in compliancewith applicable securities laws. Any failure to comply with these restrictions mayconstitute a violation of applicable U.S. or Canadian securities laws. This Presentation andthe information contained herein do not constitute an offer of securities for sale in theUnited States. By accepting this Presentation, the recipient represents and warrants thatit is a person to whom this Presentation may be delivered or distributed without aviolation of the laws of any relevant jurisdiction. This Presentation is not to be disclosedto any other person or used for any other purpose and any other person who receivesthis Presentation should not rely or act upon it.The delivery or distribution of this Presentation in or to persons in certain jurisdictionsmay be restricted by law and persons into whose possession this Presentation comesshould inform themselves about, and observe, any such restrictions. Any failure tocomply with these restrictions may constitute a violation of the laws of the relevantjurisdiction.By attending the meeting where this Presentation is made or distributed, or by readingthe Presentation slides, you agree to be bound by these provisions.

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Disclaimer


BPCCorporateOverview&ExecutionTeam

Share Capital• Shares in Issue 1,490,479,096#

• Authorised Shares5,000,000,000• Options in Issue 84,450,000*

• AIM Listed; TIDM: BPC• Domiciled in the Isle of Man

and The Bahamas• Market cap c.£17m^, no debt

^asat1June2017#inclusiveofissueof260,000,000newsharespursuanttotheplacementannouncedon14June2017,assumingcompletionofbothfirmplacement(110,000,000shares)andconditionalplacement(150,000,000shares)

*Inclusiveof15,600,000warrantstobeissuedoncompletionoftheplacingannounced14June2017

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Board

BillSchraderChairman

Ex-BP30years;DirectorofHessandOphir;extensiveindustrynetworkandexperience;USbased

SimonPotterCEO&MD

Qualifiedgeologist; +30yearsoil&gas/miningsectorexperience;ex-BP20years;CEOHardmanResources &DartEnergy;Bahamas based

JamesSmithNED

FormerBahamasMinisterofState,MinistryofFinance;widelyacknowledgedmonetarypolicyexpert;Bahamas based

AdrianCollinsNED

+35yearsfundmanagementexperience;ex-MD Gartmore InvestmentManagement; ChairmanLiontrust AssetManagementplc;UKbased

EdwardShallcrossNED

Fellow- CharteredInstituteofBankers;+40yearsfinancialsectorexperience;ex-SeniorExecutiveDirectorBarclaysPLC;IoMbased

RossMcDonaldNED

+35yearsRoyalBankofCanada,ex-SeniorVicePresident&HeadofCaribbeanBanking;Bahamasbased

ExecutiveTeam

Eytan UlielCommercial Director

18yearsO&G/resources&commercialexperience,exArrow/Dart,Londonbased

BenProffittFinanceDirector

8yearsO&G/resourcesexperience,qualifiedCA,CompanySecretary,IsleofManbased

RandolphHiscockTechnicalAdvisor

+30years exploration,newventures/businessdevelopmentexperience,geologist,ex-Shell,US/CDAbased

JobethColeby-DavisLegalCounsel

10yearsexperience, specialistBahamianO&Gregulatoryexpertise,Bahamas based;recentlyappointedtoBahamasSenate(UpperHouse)

Dave BondDrillingManager

33yearexperienceinoffshoredrilling, seniorroleswithanumberofmultinationalsincludingOphir &Woodside,Bahamasbased

JaneBondSubsurfaceManager

20yearsexperienceingeology,seismicinterpretation,petrophysics andreservoirengineeringforavarietyofmultinationals, Bahamas based

RobertaQuantEnvironmentManager

9yearsexperience, ex-BahamasEnvironment,Science&TechnologyCommission, Bahamasbased


Strategy:TargetUnexploredAreasofThickSedimentPile

• Provenandemergingoffshorebasins

• Mostofworld’scurrenthot-spotsforoilandgasexploration

• Approx.30,000feetofunderexploredsedimentaryrocksinTheBahamas

• AnalogouspetroleumsystemstoCuba,MexicoandGulfofMexico

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BahamasLicence Summary- GulfofMexicoPlayAnalogs

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• Scale: Middle East scale carbonate structural plays; multi-billionpotential; advantaged fiscal regime

• Acreage: 3 million acres, 12,600 km2 from 4 southern licences.Miami block and additional licence applications optional

• Operator: BPC (Bahamas Petroleum Company plc.) WI: 100%

• Water Depth: ~500m at potential drill sites and over 3D area

• Work Commitment: One exploration well in second explorationperiod (commencement date extended to April 2018)

• Proximal: US GOMmarkets, infrastructure, contractors & suppliers

• Sunk costs: > $US100m (2005 to present); extensive technical work

3D Area>3,000

km2

Regionalcarbonateplayfairway• ProvenJurassic- Cretaceousoilsystems– USGOM,Mexico,Florida&Cuba• ExposuretoSouthernMexicoanalogplaysonoffer2015/2016• Runningroomwithaccessto12,600km2 ofuntested,shallowwateracreage• Proximaltoworld’slargestrefining&energymarket,GOMcontractorsandsuppliers


ProjectHighlights

APOTENTIALLYMULTI BILLION BARREL

PROSPECT

• 4commerciallyco-joinedoffshorelicenses;12,600km2 (>3millionacres)• Afurther9,400km2 underapplicationon-trend;play systemsecured• Regional analogues,localworkingpetroleumsystems• ProximatetoUSmarkets,infrastructureandservices• Significantworkundertaken(2D,3D,geologicalmodeling,EIAetc)

TECHNICALCASE

• Multi-billion barrel potential(RyderScottCPR,2011)• Surroundedbyprovenpetroleumprovinces:GulfofMexico,Cuba,Florida• Underexplored(5wells: 1well/~24,000km2;allhadhydrocarbon shows)• Historical results(1945-1986)basedonolddataandtechnology;extensive

database– 8,000km2D,3,000km3Dseismic,core,cuttingsandlogs• c.$100millionspenttodate

REGULATORYANDFISCALREGIME

• Attractivefiscalregime• Throughputdependentroyalties• Nocorporate/incometax.NoCapitalGainsTax• Dictateslowminimumeconomicfieldsizeat200millionbarrelsorless• Estimatedbreakevenprice:$30- $40perbbl

FORWARDPLAN• 1exploration well• Successcasewillrequirefurtherappraisal• Ifappraisalwellsuccessfulwilllikely leadtodevelopment

EXECUTIONCAPABILITY• Operator withhighqualityboardandmanagement• Teamwithprovenindustryexperience(BP,Hess,Ophir,Hardman,Arrow)• In-housecapability(geology,geophysics,reservoirengineering,drilling)

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TechnicalHighlights

1. RegionalSetting- PetroleumprovincesintheCircum-GOM:• USGoM (on/offshore),incl.Florida;SouthernMexicooffshore;Cuba• PotentialJurassicsubsaltplay• Underexploredarea– 5wells(1well/~24,000km2)

2. ProducingPlayAnalogs• SouthernMexico-KuZaap-Maloob,Italy– Vald’Agri &Taq Taq-Kurdistan

3. WorkingPetroleumSystem• Sourcerockslocallypresentinshelfwells;allhavehydrocarbonshows• Evidenceofpaleo-hydrocarboncolumnsupportsmaturation,timing&charge• Geochemistry/fluidinclusions

3.Reservoir/Seal

• Evidencefrom3Dandhistoricwellsofmultiplereservoir-sealpairs

4.Trapsmappedfrom3D

• MiddleEastscale4-waystructuralclosures• 3Dseismicallydefined;>70kilometersalongstrike

5. Multipleplaysandtargets,nota“one-off”• Jurassicclastics throughUpperCretaceouscarbonates;shallowertargetsalsoidentified

6. Upsidepotential&Runningroom• Outsideof3Dareabasedonextensive2D;licence applicationscaptureon-trendpotential

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BPCExpectation

TVDMss

CenomanianUnconformity

Albian(Reservoir)

UpperAptian(Reservoir)

Barremian(Source)

Jurassic(Source)

BFold/ThrustFairway

TrendA

LowerAptian(Reservoir&Source)

CFoldFairway

5km.Approx.

FoldB

TrendAFoldC

3D Area>3,000 km2

FOLDB

LateCretaceous AptianTopDepth 700m 2400m

Length 75km 75kmClosureArea 453km2

(104,526acres)Rec.Volume

Potential Expectation3– 4billionbbls^

Water depth 500 -550m

Section Line

FOLDC

LateCretaceous AptianTopDepth 950 m 2,750 m

Length 25 km 25kmClosureArea 63km2

(15,814acres)Rec.Volume

Potential Expectation1– 2billionbbls^

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^InternalCompanyestimatesbasedonRyderScottCPR2011 volumes (downtoandincludingAptian megabank)plus internalCompanyassessmenttoincludedeepermaintarget reservoirsrevealedby analysisofsubsequent3Dseismicdata. Meanunrisked resourcesestimatedbyRyderScott(excludingthesemaintargetreservoirs )were2.0billion(“FoldB”)and0.6billion(“FoldC”).


LargeStructuralTrapsidentifiedbymodern3D– MiddleEastScale

10Kms

TrendA

Fold B• Extends from 2000’ to 22,000’ and covers more than

100,000 acres

• Much larger than anything in the US Gulf of Mexico; comparable in size to structures found in the Middle East

10Kms

FoldB

FoldC

TrendA

FoldB

Bahamasforelandbasin

10Kms

FoldB

FoldC

TrendA

FoldB

TopLateCretaceous

Aptian

FoldB

FoldC

FoldB

FoldC

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• 4waydipclosures• Significantverticalrelief• Seismictiedtoalloffsetwells

Bahamasforelandbasin

GrandBahamaBank

CaySal-1

DoubloonSaxon-1

3DSeismicArea


Pre-production(PhaseIII)

ForwardWorkPlan(Conceptual)

Activity:Drilloneoffshore

explorationwell

Timing:Commenceduring2018

SuccessCase:Discovery

Exploration(PhaseI)

Appraisal(PhaseII)PhaseIIA:

Scaledelineation

Firstoil

5– 6yearsfromsanction

Production(PhaseIV)

PhaseIIB:ProductionTesting

2018-19 2020-21 2021-22 2022-23 2023onwards2019-20

Activity:Drilloneoffshore

exploration/appraisalwell

Timing:Late2019

SuccessCase:Delineationofscaleoffield

Activity:TestwellProductiontestOilrecovery

Timing:Late2020

SuccessCase:Production

ratesDevelopment

scenariodefined

Activity:DevelopmentplanningFPSOprocurement

Arrangingdevelopmentfinance

Timing:2021/2022

SuccessCase:FDP

Activity:Drillingofproduction

wellsFieldoperations

Timing:2023onwards

SuccessCase:ProductionandsalesPositiveCashflow

• Estimatedtimetoproduction/operatingcashflows:~5-6years

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EnvironmentalImpactAssessmentCompletedandAcceptedbyGovernment

Technical:ü Multibeam,BackscatterandSeaBottomProfileDataü WorstCaseDischargeCalculationsü GeologicandStratigraphicAssessmentü FrontEndEngineeringDesign

Environmental:ü SeaBottomSurveyü OilSpillModellingü EnvironmentalSensitivity(ES)Mapsü EnvironmentalSensitivityIndex(ESI)Mapsü OilSpillResponsePlan

Environment:CompletedStudies

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TheFarm-InProcess

BPC’sstrategyhasbeentosecurefundingforaninitialwellviaafarm-inorsimilartransaction• Processongoing;significantnumberofmajors,largeindependentsandfinancialinvestors

haveengaged,givenscaleandqualityofprospect• Severalpartiespresentlyengagedincommercialnegotiations• Processongoingwithmultipleotherpartiesinlinewithgeneralmarketrecovery

• Processhas,however,takenmuchlongerthananticipatedandhasnotyetbeenconcluded• ProtractedlengthoftimeforBahamianGovernmenttoadoptandenactnewPetroleum

legislationandregulations• DelaysinrenewalandextensionofBPC’slicences• Downturninglobaloilindustryduring2014– 2016– reducedexplorationbudgets

especiallyforfrontierexploration

Capitalraisingannouncedon14June2017istoprovideadditionalworkingcapitalthroughthisprocess• Stringentcostsavingmeasuresimplementedoverpast18months;thesewillcontinue• Fundingwillprovideadditionaltimetoengageasmanypartiesaspossibleandseekbest

possibleterms– withcapitalraising,workingcapitalsufficientthroughforatleast12months

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1. ‘ABOVE-GROUND’ISSUESNOWCLEAR/RESOLVED• Licences extended,drillingobligationdeferred• Legislativepackagetofacilitatedrillingnowinplace• NewGovernmentinTheBahamas

2. MARKETSENTIMENTIMPROVING• Oilpricerecovery• Renewedinterestinhighqualityfrontier/offshoreexploration• Potentialpartnersseekingreengagement

3. CAPITALREQUIREMENTS/ENTRYCOSTSUBSTANTIALLYREDUCED• Capitaloutlaydeferredto2018/19• Distressedrigmarketopportunitytofurtherreducecapitalrequirement• ModestentrycostwithupperquartileF&Dcosts.$60- $80million

4. AGGREGATERISKHAVENATTIMESOFINDUSTRYCAPITALCONSTRAINT• Investorsfocusesonabilitytoexecute;OECD-litecountryclosetoUS• Exploreinahydrocarbonprovincewithworkingpetroleumsystem

5. CARIBBEAN/BROADERGULFOFMEXICO– ANINDUSTRY“HOTSPOT”• Mexicodeepwater offshorelicensingrounds• ExceedsGuyanadiscoverydimensionsinvolume,valueandrunningroom• Cuba:openingup:playextensions;developmentoptions

Ø WHATSTAYSTHESAME– THISISANATTRACTIVE PROSPECTü Scale;Fiscalupsides;Company/Countrymakerü Diverseplaytypes;Localanalogues;Drill-ready- Operatorshipü Downsideprotected:Robusteconomicsat$30– 40perbarreloilprice,Minimum

economicfieldsize:<200millionbarrelsPage13

BPCisconfidentinbeingabletoconcludetheFarm-InProcess

introductory materials for shareholders

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