REDUCING RISK: READY FOR THE DRILL BIT

3D Seismic Acquisition 2011

Investor Presentation
(AIM: BPC) Email: info@bpcplc.com Website: www.bpcplc.com

November 2011

Important Notice 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. 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BAHAMAS PETROLEUM COMPANY Plc.

1. 2. 3. Investment Highlights Strategy Leadership Team
North Sea Comparison

4.
5. 6. 7. 8. 9.

Asset Base
Key Risks Addressed Valuation Capital Structure Competitive Landscape Summary

Investment Highlights
Unique portfolio of licences; play-type range, untested scale, commercial terms thus upside Extension of proven Cuba fold belt/thrust sheet plays. Greater Gulf of Mexico analogues Experienced leadership team with strong track record of value creation Executive team with focus on commercialisation of new hydrocarbon provinces Progressive and significant de-risking of the asset base over last 4 years Successful 2D and 3D acquisition confirms large structures; 3D to specify drillable locations Additional licence applications submitted Third-party verification of scale and quality of asset base Ryder Scott CPR, Statoil farm-in Immediate next stage well work programme (2012/3) to crystalise value Scale, risk, reward and location attractive to Majors, NOCs and large state enterprises Aggressively pursuing farm out plans and working closely with Bahamas Government ahead of drilling

Fully funded into the next stage of de-risking

Momentum stock
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Strategy - Regional Context

Region has discovered nearly 100 Billion bbl oil and 500 tcf gas Pervasive, prolific Jurassic source rock Nearly 4mm acres under license equivalent to 672 OCS lease blocks Individual mapped closures exceed 130,000 acres equivalent to 22 OCS lease blocks Repsol to spud Cuba well 1Q 2012

Strategy Goals and Targets

STRATEGY
Maximise value growth from oil/gas potential in Bahamian licences
Technical: Maximise resource/reserves declaration, exploit carbonate expertise regionally Costs: Leverage equity position to minimise future demands on shareholders Commercial: Maintain maximum access to upside while retaining adequate control of licences

Ensure wealth and opportunity creation for Bahamian people and nation

GOALS

TARGETS

Timing

Describe and demonstrate upside

High-grade resource potential post 3D Continue to de-risk inventory internally

Opened data room

Completed 3D acquisition Initial 3D interpretation Commence preparations for drilling Complete Farm-in discussions Comply with regulations Access Rig Drilling (before April 2013)

2Q11
3Q11 4Q11 1Q12 2Q12 2Q12 4Q12 2013

Prove play-types commence inventory drill-out Funding/farmdown strategy to leverage activity Negotiated JOA to retain influence

Realise value upside through equity participation Examine new licence potential

Leadership Team
Adrian Collins
Dursley Stott Eddie Shallcross Steve Weyel

Non-Executive Board
Alan Burns

Material international business experience Significant directorships, financial and oil & gas executive experience Financial, technical stewardship

Founder of BPC, 39 year career in the oil business

President
Simon Potter

Founder of Hardman Resources, sold to Tullow Oil - A$1.4bn Active in 28 new field discoveries Uganda, French Guiana, Mauritania

Executive Management
Paul Gucwa

30 years resources exploration, development and production, in Europe, Russia, America, Africa and Australasia BP 20 years. CEO:- Hardman Resources, Arrow Energy International, Dart Energy. Management of dual listed entities - AIM top 10, ASX 100 and 200. Value growth track record Commercialisation of new hydrocarbon provinces. Significant raising and A&D experience 37 years directing exploration and production projects throughout the United States and Canada. Ph.D. Geology Marathon Oil Company: Manager of US exploration. Chief Geologist: BP America

In-country leadership

Audit as at 30/9/2011; refreshed governance processes Invite Bahamian and E&P experienced candidates onto the Board Examine Bahamian listing options
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Asset Base, Activities and Status

Exploration licence: 12 years in total; four 3-year periods 1st Renewal (years 4 6) @ 100% of acreage well commitment (spud before end of year 4 - April 2013) Company advised Ministry of the Environment ( Feb. 2011) commitments fulfilled and intention to extent licences to 2015 Production licence: 30 years plus additional 10 years (subject to approval of extension)

Application (1)
Islamorada Licence Zapata Licence Falcones Licence

Holder
BPC / Statoil BPC / Statoil BPC / Statoil

License Area
777,900 acres 3,148 km 3,141 km 3,135 km
2

776,200 acres
2

774,600 acres
2

Application (2)
Santaren Licence Andros Licence

Holder
BPC BPC

License Area
760,100 acres 3,076 km 3,134 km
2

774,500 acres
2

August 2010 Bahamian Government suspended the consideration process for all oil exploration and drilling applications pending new environmental protocols
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Risk Mitigation Progressive De-Risking

BPC 2007
Tenneco 1986
Retrieved original core and cutting samples Completed modern analysis of older seismic, well logs, gravity and magnetics to provide structural geologic analysis, reservoir simulations, geochemistry and petroleum systems evaluation Shot 2D seismic, gravity and magnetics in June 2010 and January 2011 CPR released July 2011 CGGVeritas BroadseisTM 3D acquisition completed September 2011. >3000 km; largest ever for GoM-Caribbean

25 Km

BPC 2011

BPC 2012

Forward Work Programme/Obligations

Fast Track PSDM: Improve interpretation of Jurassic interval, seismic facies/lithology Prioritise well locations Detailed well planning Continue negotiations for partner(s) for Southern Licences Apply for additional licences Participate in 2D over Statoil joint application areas
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Risk Mitigation Prospect Definition

Time Structure Top Cretaceous showing Folds A,B, C & D

Figure SM-3: Top Cretaceous Fold B and C closure, Red polygon, 75km in length, area 524km 2 (129,400 acres >22 OCS lease blocks )

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Risk Mitigation Source and Migration

No or poor seismic data No valid traps Wells on bank Limited seal facies shallow No Jurassic source penetration

Seafloor vent active hydrocarbon seepage creates vent on seafloor

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Risk Mitigation Diverse Petroleum Systems and Play-types

1. Jurassic Paleo Highs, Clastics & Subsalt

2. Upper Cretaceous Platforms, Buildups & Talus

3. Lower Cretaceous & Jurassic Evaporitic Platform Dolomites, Buildups & Talus

4. Middle Late Jurassic Rift & Sag Basins, Evaporitic Dolomites & Reactivated Faults

5. Foreland Folds & Imbricate Thrusts

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Risk Mitigation Reservoir and Seal; Seismic Determined Facies

Upper Cretaceous platform architecture

Retrogradational stacking of Albian 1 and 2 platforms

Kerans, 2011

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Risk Mitigation Structures, Scale and Potential Targets

Cuban Border

2011 2D Seismic with CPR Estimates

Section is horizontally compressed approximately 2:1

Nassau 270 km

Fold A

5 km 5 km

Fold B

Fold C

3,000
13 146 11% 135 1611 26%
Approx. Depth (feet)

33 363 28% 54 538 28%

34 798 13%

93 1315 23%

9,000

98 1702 35% 116 1503 32%

29 315 35%

18,000

Low High Un-risked (MMBO) CoS %

Section is horizontally compressed approximately 2:1

Near top Cretaceous

Top lower Cretaceous Albian

Intra lower Cretaceous Aptian Intra lower Cretaceous Base Aptian Jurassic
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Risk Mitigation Third Party Verification: CPR July 2011

HIGHLIGHTS: Assessment of Cretaceous play system, post Aptian, only. Over 1 billion bbls of risked recoverable resources. Average risk ~1:4 (25%) Two independent reservoir intervals over the Bain, Cooper and Donaldson Licenses each have mean estimated un-risked recoverable resources in excess of 1.5 billion bbls; a third has in excess of 1.0 billion bbls

Top Aptian horizon alone contains a risked recoverable resource in excess of 0.5 billion bbls
Potentially a single penetration could test a mean unrisked recoverable volume of in excess of 2 billion bbls Two structures have an un-risked recoverable resources in excess of 1 billion bbls of oil Unrisked mean volumes sum to in excess of 4 billion barrels with working petroleum systems at each stratigraphic level assessed Shallower Tertiary strata and deeper Jurassic, pre and post-salt are still to be evaluated (post 3D seismic evaluation) and could equal or exceed the aggregate Cretaceous potential

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Risk Mitigation Environment; EIA, Spill Simulation

BPC EIA for Southern blocks submitted to Government October 2011 Agreed deadline for received comments and issue for public consultation 23rd January 2012 Joint Statoil/BPC EFS submitted to Government October 2011 Active dialogue with Government ahead of a public consultation process Wide consultation process on best regulatory practice
Location Eastern US Southeast Florida Florida Keys Western Bahamas Eastern Bahamas Northern Cuba Bahamian MPAs Total Surface
15 mbopd

Seabed 0.03 0.04 0.02 0.14 0.12 34.98 0.00 35.3

Seabed 0.02 0.03 0.01 0.29 0.11 27.26 0.00 27.7

10 mbopd 20 mbopd

0.05 0.09 0.04 0.07 0.16 46.44 0.00 46.9

% of oil released making shoreline, remainder either evaporated or biodegraded simulated release site 2,556 individual spills lasting 60 days tracked for 90 days; no intervention
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Commercial Context and Fiscal Terms

Commercial
Politically stable; uninterrupted parliamentary democracy of over 275 years English heritage/based legal system and structure

Significant structural cost benefits from proximity to extensive oil field services, contractors and equipment/infrastructure providers from US Gulf of Mexico
Freeport status; facilitated customs and excise import/re-export

Fiscal
Excellent fiscal terms structured around sliding scale production-based royalties (12.5 - 25%) No income/corporation tax in Bahamas

No capital gains tax on any transaction

Initial 50% free cash flow to licence owner (based on 600 mmbbl development and current prevailing oil price) Modest holding cost based on cost/acre paid annually (deductible against royalty payment)

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Capital Structure
Enterprise Value
Price* 52 Week High 52 Week Low GBP 0.0691 0.2525 0.0680 USD 0.1085 0.3966 0.1068

Current Substantial* Shareholders

as at 30th September 2011

Shareholder Fidelity TD Waterhouse Halifax Share Dealing Barclays Wealth Hargreaves Lansdown Asset Management Standard Life Investments Majedie Asset Management JM Finn & Co

Market Cap (mm)

Cash and Cash Equivalents (mm)** Less 3D Costs (mm)*** Reconciled Cash and Cash Equivalents

85.0
41.9 (16.6) 25.3

133.5
65.8 (26.1) 39.7

Enterprise Value (mm)

59.7

93.8

* Share price and Market Cap as at 22 November 2011 ** Based on figure disclosed in Interim Financial Statements to 30 June 2011 *** Estimate of 3D costs expended to date following disclosed cash balance as at 30 June 2011

Total Directors, Management & Founders Total Top 25 Shareholders Total Shares in Issue
* Holding over 3% of shares in issue

63,298,444 740,388,933 1,230,479,096

5.14% 60.17%

Existing register 80% UK, 15% Europe, 5% R0W Retail 50 55% Bahamian Listing BDR option
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Future

Funding - Sources and Uses

Sources
Current sources Cash as at 1/1/11 Cash raised 1 TOTAL SOURCES 2
1 in

Uses (Estimated - beginning 2011 to end 2012)

US$m 6.1 70.1 76.2 Operating expenditures 2D seismic 3D seismic Multibeam Other Technical Projects Technical staffing/Consulting 3 US$m 3.4 34.4 0.6 1.8 1.3

the 6 months to 30/6/2011. Net of raising costs

2 Additional

sources expected from farm in

Farm down to reduce exposure and provide funding Opened data room June 2011 Targeted major companies with proven track record and active independents Significant interest maintained Negotiations underway; expect to occur by 2Q 2012 Resultant net cash balance end 2012 assuming estimated uses ~US$20 million before any new sources

Licence Related Costs

2011 Non-recurring costs 1 Sub-Total Corporate Costs 2011/12 TOTAL USES 2
1 Raising, 2 Period

1.3
3.3 46.1 10.5 56.6

Personnel and Legal costs 1/1/11 31/12/12 3 Including preparation for drilling

Note: BPC is debt free

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Competitive Landscape

Anticipated well locations

20

News flow 2011/2012

Bahamianise: new Board members (Bahamian, E&P), Bahamian listing EIA submitted: public consultation, endorsement, revised legislative framework

New licenses: pending revised protocols

Existing applications, new seismic Expand asset base, leveraging expertise

3D Database: fast track processing, interpretation and attributes

Seismic facies analysis, Petroleum system development Prospect definition and prioritisation

Bahamas election: result and timing; New mandate; Relationships

Farmdown: Verification, funding capacity, technical credentials; rig access Drilling: Revised drilling mandate, Cuban activities
Detailed well planning; location options, depth, timing and cost
Spill response plan, coordinated across the region
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Key Conclusions
New 2D established the playfairway, basin architecture and scale. Indicates historic wells were not valid tests Establishes billion barrel risked potential; Multi-billion barrel upside; Multiple independent play systems Individual well tests/prospects could prove multi-billion barrel potential across different, independent horizons

3D data significantly reducing risk whilst facilitating prospect identification and well planning
Scale, volume upside and untested nature of the basin attractive to Majors and NOCs

Unparalleled commercial context; benign regime, political stability/legal integrity, advantaged cost structure
National election, revised regulatory framework and renewed mandate catalysts

BPC believes stock significantly undervalued Technical and commercial combination provides almost unique access to value growth potential in current international oil and gas markets

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