ready for the drill bit: protecting the environment

READY FOR THE DRILL BIT: PROTECTING THE ENVIRONMENT

19 November 2012

Bahamas Conference of Seventh Day Adventists - Leadership

Offshore Oil Development and Tourism Coexist in The Americas

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Annual revenue from tourism in countries with offshore petroleum exploration and production

United States: $166 billion Mexico: $12.4 billion Brazil: $6.2 billion Argentina: $5.6 billion Columbia: $2.8 billion Cuba: $2.4 billion The Bahamas: $2 billion U.S. Virgin Islands: $1.5 billion Venezuela: $672 million Trinidad and Tobago: $557 million Belize: $264 million

*2010 World Bank International Tourism receipts, Virgin Islands 2009 data, T&T 2008 data

Disclaimer

This presentation (“Presentation”) has been prepared by Bahamas Petroleum Company plc (the “Company”) solely for its use at informational meetings with its shareholders and is being delivered for information purposes only to a limited number of persons. This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, officers or advisers. If you are in any doubt about the contents of this Presentation or the action you should take, you should consult an independent adviser authorised to render such 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 to contain all information that a member of the Company may wish receive for purposes of assessment or valuation of his respective investment and is not intended to form the basis of any investment decision.

While the information contained herein has been prepared in good faith, neither the Company 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, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any shareholder of the Company (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 either the Company, its shareholders, 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 (including the Agents) take any responsibility for, or will accept any liability in 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, the Company does not undertake any obligation to provide any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent.

The Information is confidential information and the property of the Company. It is made available strictly for the purposes referred to above. The Information and any further confidential information made available to any recipient must be held in complete confidence and documents containing such information may not be reproduced directly or indirectly, used or disclosed without the prior written consent of the Company. By accepting delivery of this Presentation, the recipient agrees to return it at the request of the Company.

This presentation contains certain statements which may constitute forward-looking statements. 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 reflected in these statements are based on reasonable assumptions, such statements are only predictions and are subject to inherent risks and uncertainties and changes in the underlying assumptions which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual 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 these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this Presentation, except as required by law or by any appropriate regulatory authority. Nothing in this Presentation or in documents referred to in it should be considered as a profit forecast. Past performance of the Company or its shares 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 to sell 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 for distribution to existing shareholders of the Company. Neither this Presentation nor any part of or copy of it may be taken or transmitted, directly or indirectly, into the United States of America or Canada or distributed or re-distributed directly or indirectly, in the United States of America, its territories or possessions, or Canada, or to any resident thereof except in compliance with applicable securities laws. Any failure to comply with these restrictions may constitute a violation of applicable U.S. or Canadian securities laws. This Presentation and the information contained herein do not constitute 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 be delivered or distributed without a violation of the laws of any relevant jurisdiction. This Presentation is not to be disclosed to any other person or used for any other purpose and any 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 may be restricted by law and persons into whose possession this Presentation comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of the relevant jurisdiction.

By attending the meeting where this Presentation is made, or by reading the Presentation slides, you agree to be bound by these provisions.

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Regional Setting

Announced November Spud

Petronas dry hole

Repsol dry hole

Pdvsa dry hole

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Key Points

Bahamas Petroleum is working to: – Maximize value growth to its shareholders – we want Bahamians to become shareholders/owners – Ensure wealth and opportunity creation for the Bahamian people and nation

Growth and development of the petroleum sector will require that wells be drilled to verify the presence of hydrocarbons

If drilling is successful: – The identified prospects have the potential for multi-billions of barrels of oil – There will be time to train Bahamians for the jobs and opportunities – The next two years could help rebase the Bahamian economy

Bahamas Petroleum and the Government are working on parallel paths: – The Government is working to put regulations in place to oversee activities – The Government needs to put policies in place to insure success benefits the people and future generations – Bahamas Petroleum is aligning itself to ‘best practices’ jurisdictions of Norway, UK and the US as we prepare to drill – All parties are committed to responsible exploration and preserving the environment for future generations

Geologically the Bahamas is considerably different to the US Gulf of Mexico. A “Macondo” type spill is highly unlikely

Our “oil spill” modeling shows the wind and ocean currents spare the Bahamas; but trans border response planning will be important

We will be prepared in the event of an accident

Bahamas Petroleum Company Overview and Introduction to Geology Exploration Potential of Bahamas Petroleum Southern Licences Exploration/Production Life Cycle Protecting The Environment

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Corporate Overview

Isle of Man registered Oil and Gas Exploration Company Founded by Alan Burns in 2005 Initial Exploration licences granted in 2007 The ordinary shares of the Bahamas Petroleum Company Plc are traded on

the London Stock Exchange Alternative Investment Market (AIM: BPC) To be listed on the Bahamas International Stock Exchange via BDR Exploration office in Nassau staffed with Chief Operating Officer, Business

Manager, Lawyer and Environmental Scientist Looking to add Bahamian members to the Board of Directors

Share Price Information

* Share price and Market Cap as at 16 November 2012

GBP USD Price* 0.04 0.06

52 Week High 0.16 0.25 52 Week Low 0.0385 0.06

Market Cap (mm) 49.2 78.03

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Experienced Management Team

The BPC management team has over 70 years experience in the oil and gas business across a wide range of countries, environments, and types of resources • Onshore, Offshore, Artic, Deep-water, Heavy Oil, and High-Pressure Reservoirs

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Required Elements for an Oil Accumulation

Source rocks

Source Reservoir Trap Seal Maturation Migration

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Seismic: The Primary Tool

Increase in Impedance Decrease in Impedance

Sound reflects off the rock layers

1 meter

Source: AAPG/ExxonMobil/Schroeder 2004

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Platform Margin Bahamian Foreland

➜ Colored horizons are tied to the previously drilled wells, this allows us to bring the geology into our prospects

Cuban Border Nassau 270 kms Trend A Fold B Fold C

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Top Cretaceous Structure: 3D Image

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Top Cretaceous Structure: Map

10 Kms

Fold B

Fold C

Trend A

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

Proposed Exploration Well: Perseverance #1

Key Facts

Anticipated well cost: $120 million Water depth at location: 1,500 feet Planned well depth: 22,500 feet Timing: 1 year to plan, 120 days to drill Location: Southwest corner of

Donaldson block Distance from Shoreline

– Nassau: 168 miles – Andros: 80 miles – Cuba: 25 miles – Zarubezhneft: 10 miles

Drilling rig with advanced and redundant safety mechanisms

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Typical Petroleum Lifecycle

Seismic: Provides detailed information on geologic (geophysical) conditions that may indicate the presence of hydrocarbons

Exploratory Drilling: Verifies the presence or absence of a hydrocarbon reservoir, if present additional testing may be done to establish possible flow rates

Appraisal Drilling: Determines volume of hydrocarbons, and characteristics of the reservoir to ascertain whether a commercial development is viable

Development Planning and Construction: Determines most effective production and transportation systems and build necessary facilities

Development and Production: Produces oil and gas from the reservoir through formation pressure, artificial lift, and possibly advanced recovery techniques, until economically-accessible reserves are depleted. Transports production to markets

Phase

~ 5 – 10+ years ~ 1 year ~ 1 – 3 years ~ 3 – 6 years ~ 20 – 40 years

Seismic & Geologic Studies

Exploratory Drilling

Appraisal Drilling

Development Planning &

Construction

Development and Production

$50 million USD

$60 – 160 million USD

$400 – 600 million USD $30 – 40 billion USD *assumes 1bn barrel field

Bahamas Petroleum Stage

Estimated Typical Costs

Cost

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Typical Revenue Split (Undiscounted)

1BBO @ $80.00/bbl

$ 80 billion

$ 20 billion

$ 20 billion

Development & Operating costs $ 40 billion

No Risk No Capital Costs

Company takes the risk Reward to shareholders

Note: These numbers are based on estimates that could change as the result of exploration drilling. Does not include cost of capital to shareholders.

Phased Development: 2 billion barrels of oil (Conceptual)

Annual Production

Subsea Development for the Production of Oil with FPSO - Well heads are located on the seafloor, flow lines come up to

FPSO - Oil is offloaded to tanker for shipment to market - Water & Gas reinjected to maintain reservoir pressure Advantages: - Can develop in phases and get 1st production sooner - Less intrusive environmentally - Can disconnect and move offsite during hurricane season

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256

220

182

146

120

72

36 Mill

ions

bbl

s/yr

Phased Development of petroleum resources extends production, economic benefits, and job

opportunities in The Bahamas for decades

Annual Cumulative

1 2 3 4 5 6 7 8 9 10

Year

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Economic Impact and Government Revenue (Conceptual con’t)

The Government’s challenge is to convert resource use into sustainable economic development

Additional long term direct source of revenue Enhanced indirect revenue Direct and indirect employment associated with offshore oil production No risk No cost of capital

Note: These numbers are based on estimates that could change as the result of exploration drilling

Bahamas Royalty Income (Undiscounted)

$MM

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Environmental Setting: Proposed and Existing Oil and Gas Activity

Announced November Spud

Tanker route

Cuba dry holes

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Be Prepared: First Priority Placed on Human and Environmental Safety

Environmental Impact Assessment Environmental Management Plan

– Worst case discharge – Oil Spill Modeling – Oil Spill Response Plan

12 months of well planning with high quality data – Seismic facies/seismic lithology – Sea bottom and shallow drilling hazards – Front End Engineering and Design (FEED)

Inter and Intra-Government communications important – Visited Cuba to evaluate capabilities and response organization

Joined Clean Caribbean and The Americas/Oil Spill Response

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What is an EIA and EMP?

Environmental Impact Assessment (EIA)

Identifies the following:

Existing conditions

Potential level of impacts (natural, social and economic)

Sensitive areas

Mitigation measures

Rig & Site Specific Environmental Management Plan (EMP)

Measures for implementation

Emergency preparedness and response

Roles and responsibilities

Site activities

Pollution risk and mitigation

Incorporates best practices from Norway, the US, and the UK

Why a “Macondo” Type Spill is Unlikely in The Bahamas

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The geology of the U.S. Outer Continental Shelf (OCS) is fundamentally different to the geology of The Bahamas

US Gulf Bahamas

Rock Type Sandstone & Shales Carbonates

Rate of Sedimentation

Rapid 200x

Slow 1x

Compaction High Low

Pore Pressure Abnormal – High Normal

New rule changes and legislation regarding wellbore integrity, well control equipment and workplace safety provide for redundant safety measures and ensure equipment is operating properly

Proper well planning is essential to drilling a safe well. We expect the planning for our well to take almost 1 year and our new 3D seismic provides the best data available for planning a safe well

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Capping Stack

Source: Helix Well Containment Group

Did not exist pre- Macondo

Built to function in water depths up to 5,000 feet

Solution to stopping Macondo oil release

Limited number in existence

Bahamas Petroleum will have access to one before we spud our well

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Oil Spill Modeling

simulated release site % of oil released making shoreline, remainder either evaporated or biodegraded

60 days of release and 90 days of tracking each day for 7 years (2004-2010) – 2,556 individual spills with no intervention

• Sophisticated model incorporating ocean currents, wind and oil properties. Used to understand the transport of oil away from a spill so that we can be prepared to respond immediately and effectively in the event of an accident

• Trans border response planning will be important

Location Surface 15 mbopd

Seabed 10 mbopd

Seabed 20 mbopd

Eastern US 0.05 0.03 0.02

Southeast Florida 0.09 0.04 0.03

Florida Keys 0.04 0.02 0.01

Western Bahamas 0.07 0.14 0.29

Eastern Bahamas 0.16 0.12 0.11

Northern Cuba 46.44 34.98 27.26

Bahamian MPA’s 0.00 0.00 0.00

Total 46.9 35.3 27.7

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Clean Caribbean and The Americas/Oil Spill Response

ready for the drill bit: protecting the environment

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