(AIM BPC) THE BAHAMAS

Iraq
Libya
Sierra Leone
Egypt
Gabon
Norway
Nigeria
Cote d'Ivoire
US
Namibia
Congo
Falklands
Guyana
Angola
Canada
UK
Bahamas*
Why The Bahamas? Attractive Fiscal Terms
Royalty Rates and Leases terms:
Production Level
Oil Production, up to 75,000 bopd 12.5%
Oil Production, from 75,000 to 150,000 bopd 15.0%
Oil Production, from 150,000 to 250,000 bopd 17.5%
Oil Production, from 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 charges are deductible from royalty payments
Income taxes: Nil in The Bahamas
Comparison of Licencee Revenues – GoM vs. Bahamas
Royalty Rate
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
E&P Project Revenues/ BOE – Sorted by Free Cash Flow
The increased potential
return to the licence
holder in The Bahamas
is largely due to zero
corporate income tax
Government Take Capex Opex Free Cash Flow
Source: Rystad Energy, FirstEnergy Capital (February 2011)
* Based on a single 600mmbbl discovery with production start-up in 2015
Revenue splits based on all projects in country over 2010 to 2025. $100/bbl Brent oil pricing
Fiscal regimes according to contractual framework for oil, condensate/NGL and natural gas
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 every 2 years
4) 3 rd Renewal (years 10-12) @ 50% - requires well drilled every 2 years
2007
Production licence – 30 years plus additional 10 years (subject to approval of extension)
11