(AIM BPC) THE BAHAMAS

Why Bahamas? Compelling Fiscal Terms
Royalty Rates and Leases terms:
Production Level
Oil Production, up to 75,000 bopd 12.5%
Oil Production, up to 75,000 to 150,000 bopd 15.0%
Oil Production, up to 150,000 to 250,000 bopd 17.5%
Oil Production, up to 250,000 to 350,000 bopd 20.0%
Oil Production, in excess of 350,000 bopd 25.0%
Gas Production 12.5%
Rentals: $0.92 per acre per annum charged for the area of a
lease, but these are deductible from Royalty payments.
Income taxes: Nil in The Bahamas.
Royalty Rate
Government Take of Project Pre-Tax NPV (%)
100%
90%
80%
Average: 67%
70%
60%
50%
40%
Comparison of Licensee Revenues – GoM vs. Bahamas
The increased potential
return to the licence
holder in the Bahamas
is largely due to zero
corporate income tax
Bahamas
30%
20%
10%
0%
Libya
Nigeria Con
UAE
Algeria PSC
Norway
Indonesia
Angola Con
Venezuela MF
Kazakhstan
Egypt
Angola PSC
Brazil
UK
Nigeria PSC
USA Alaska
Venezuela Con
Russia Con
Source: Wood Mackenzie, Bahamas Petroleum Company,
FirstEnergy Capital
Canada Arctic
Russia PSC
Italy
Argentina
Australia
South Africa
US GoM
Ireland
Bahamas
Exploration licence - 12 years in total based on 3-year renewal periods
1) Initial 3 year award
2) 1 st Renewal (years 4-6) @ 100% of acreage – renewal requires commitment to spud well before end of year 4
3) 2 nd Renewal (years 7-9) @ 50% - requires well drilled at 2 year intervals
4) 3 rd Renewal (years 10-12) @ 50% - requires well drilled every 2 years
Production licence – 30 years plus additional 10 years (subject to approval of extension)
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