Annual Report & Accounts
year ended 31 December 2010
A Sea of  
Opportunity Corporate Directory
Company Number 
Registered in the Isle of Man  
with registered number 123863C
Directors 
Alan Burns
Chairman, Non-Executive
Dr Paul Crevello
Chief Executive Officer
Michael Proffitt FCA
Finance Director, Non-Executive
Dursley Stott OBE
Non-Executive Director
Edward Shallcross FCIB 
Non-Executive Director
Secretary 
Michael Proffitt FCA
Registered Ofﬁce 
IOMA House
Hope Street
Douglas
Isle of Man
IM1 1AP
Nominated Advisor
Strand Hanson Limited
26 Mount Row
London W1K 3SQ
Broker
Canaccord Genuity Limited
Cardinal Place
7
th
 Floor 
80 Victoria Street 
London
SW1E 5JL
FirstEnergy Capital LLP
4th Floor, 85 London Wall
London  
EC2M 7AD
Novus Capital Markets Limited
29/30 Cornhill
London  
EC3V 3NF
Auditor’s and Reporting  
Accountants 
PricewaterhouseCoopers
Sixty Circular Road
Douglas
Isle of Man
IM1 1SA
Advocate and Solicitors
to the Company as  
to Isle of Man Law
Laurence Keenan Advocates
Victoria Chambers
47 Victoria Street
Douglas
Isle of Man
IM1 2LD
Solicitors to the Company  
as to English Law 
Norton Rose LLP
3 More London Riverside
London  
SE1 2AQ
Solicitors to the Company  
as to Falklands Law 
McGrigors LLP
56 John Street
Stanley
Falkland Islands
Solicitors to the Company  
as to Jersey Law 
Mourant du Feu & Jeune
22 Grenville Street
St Helier
Jersey 
JE4 8PX
Channel Islands
Solicitors to the Company  
as to Bahamas Law 
Davis & Co
700 Bay Street East,
PO Box N-7940, Nassau
Bahamas
Graham Thompson & Co.
Sassoon House
Shirley St & Victoria Avenue
PO Box N-272, Nassau
Bahamas
Competent Persons Report
Ryder Scott Company
1100 Louisiana 
Suite 3800
Houston 
Texas
77002-5218
Registrar 
Capita Registrars (IOM) Limited
3rd Floor Exchange House
54-62 Athol Street 
Douglas 
Isle of Man
1M1 1JD
Telephone:
UK: 0871 664 0300
(calls cost 10p a minute plus  
network extras, lines are open  
8.30am-5.30pm Mon-Fri).
Overseas: +44 (0) 208 639 3399
Corporate Directory IFC
Highlights and Group Structure 1
Bahamas Petroleum Company 
at a Glance 2
Awarded and Applied Licences 4
Chairman’ s Statement 6
Environmental Report 8
CEO’ s Report 11
Operating Review 14
 Royalty Rates, Lease T erms 14
 Bahamas Petroleum Company  
 T echnical T eam, Consultants 15
 Exploration Activity 16
 Bahamas Petroleum Seismic Line 
 June 2010 Survey 20  
 Nassau Office Staff 22
 Why The Bahamas? 24
 Industry in The Bahamas 24 
 Exploration Scenario 25
 BPC Share Price Chart – Since 2010 26
Auditor’ s Report 33
Consolidated Statement  
of Comprehensive Income 34
Consolidated Balance Sheet 35
Consolidated Statement  
of Changes in Equity 36
Consolidated Cash Flow Statement 37
Notes to the Consolidated  
Financial Statements 38
Parent Company Auditor’ s Report 53
Parent Company Balance Sheet 54
Parent Company Statement  
of Changes in Equity 55
Parent Company Cash Flow Statement 56
Notes to the Parent Company  
Financial Statements 57
Glossary of T erms 62
Overview Business Review Accounts
Board of Directors 27
Corporate Governance 28
Directors’ Report 29
Statement of Directors’ Responsibilities 32
Corporate Governance
Contents Highlights
2010 was a busy and successful year for the Company;
 successfully shot the ﬁrst modern seismic survey in the area since 1987 , 
 producing some encouraging results that indicate large structures containing 
hydrocarbon indicators;
applied for two additional licences that cover approximately 6,210 km
 2
 
(1,534,600 acres);
strong balance sheet at the period end which has been further strengthened  
 by equity placing post year end raising £45.6m;
completed re-domicile of the Company to the Isle of Man; 
 change of the Company’s name to Bahamas Petroleum Company plc,  
 to properly reﬂect the Company’s focus; and
remain on track to drill our ﬁrst high impact well in 2012.
 Group Structure
BPC Jersey  
Limited
Incorporated in Jersey
BPC Limited
Incorporated  
in The Bahamas
Bahamas Offshore 
Petroleum Limited
Incorporated in  
The Bahamas
Sargasso 
Petroleum Limited
Incorporated in  
The Bahamas
Island Offshore  
Petroleum Limited
Incorporated in  
The Bahamas
Privateer 
Petroleum Limited
Incorporated in  
The Bahamas
BPC (Falklands)  
Limited
Incorporated in the  
Falkland Islands 
(dormant)
Bahamas Petroleum 
Company plc
(Formerly BPC plc) 
Incorporated in the Isle of Man
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
1 Apr May Jun Jul Aug Sept Jan Feb Mar Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Jul Aug Sept Apr May Jun
Licence
applications
submitted
Group is founded
by Alan Burns
Board expands to 
include Michael
Proffitt as Director 
Ministry of 
Energy grants 
the licence 
applications
Applies for 
additional
licences
Statoil joint 
exploration
agreement 
signed on 
3 licences
Licence awarded 
and reassigned
November 2006
Paul Crevello 
joins the 
Company as 
Chief Operating 
Officer
Five licences 
approved by 
Governor 
General of 
The Bahamas
Completes
RTO onto AIM 
market through 
acquisition of 
Falkland Gold 
and Minerals
Q2 2005 Q3 2005 Q1 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q3 2008 Q2 2009
Bahamas Petroleum 
Company/Statoil JV 
Exploration Licences
*   Cay Sal JV with Statoil and Bahamas Petroleum Company Santaren and Andros applications are  
contingent on government requested pre-licencing EIA and lifting of imposed application freeze.
Corporate History – First Mover Advantage
Bahamas Petroleum Company at a Glance
Awarded licences and licences under  >
application. Five blocks are held 100% 
by the Company and are scheduled to 
roll-over into the next 3 year exploration 
phase in April 2012; 3 blocks under JV 
application with Statoil were applied  
for in 2009 over Cay Sal bank and  
2 licences were applied for by the 
Company in July 2010 based on 
positive results of the June 2010 2D 
seismic survey.
**
Bahamas Petroleum Company plc Annual Report & Accounts 2010 2 Oct Nov Dec Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar
Ministry
gazettes
BPC Statoil 
Cay Sal 
applications
Applies for 2 additional 
licences and tenders for 
additional seismic
Raises
£5.1mn for 
2D seismic 
campaign
Announces
completion of 
seismic survey
and successful 
initial results
Finalise negotiations 
and announce 
farm-out transaction
Announces
intention to 
re-domicile  
the Company  
in IOM
Announces preliminary 
results of seismic 
Bahamas
Government 
announces
temporary freeze
on licence 
applications
Paul Crevello 
is appointed 
as CEO and 
Alan Burns 
becomes
Non-Exec
Chairman
Acquire 3D seismic 
around potential
drilling prospects
and Multibeam 
– Geochem 
seabed study
3D seismic
processed 
and 
interpreted  
Target for 
Bahamas
2012
Q4 2009 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
Apr May Jun
Q2 2012 Q3 2011 Q4 2011 Q1 2012
ﬁrst well in
Formed in 2005 and listed on the AIM market in Sept 2008 (reverse takeover) Current market capitalisation is approx. US$357 million (GBP£218 million) as at 07/05/11 (BPC:AIM)  –
First oil company to conduct new work in the highly prospective southern Bahamas region since 1987 –
First mover advantage in assembling a material portfolio of oil and gas leads  in The Bahamas
World-class exploration with giant (500mn boe) and super-giant leads exceeding 1bn boe –
Attractive ﬁscal terms: low royalty and no corporation tax –
Adjacent to Cuban waters where an active drilling programme is due to commence –
Partial farm-out strategy to fund major costs while retaining 100% ownership  in some areas
Maintain meaningful working interest positions while reducing exploration risk –
Size and scale of the opportunity is signiﬁcant Attractive to Majors and NOCs who are increasingly active in the region –
Recent results and near-term seismic and drilling programme New 2D seismic >1,300 km (June 2010 and January 2011) –
PSDM Seismic analysis deﬁned multiple drillable prospects –
Ryder Scott has initiated a CPR to deﬁne drillable prospects and assign resource estimates –
3D seismic planned for Q2 2011 –
Plans to drill projected for 2012 –
Bahamas Petroleum Company Group Overview
30
exploration leads
5
licences acquired
6
prospects
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
3 Google Image Showing Bahamas Petroleum Company 
Awarded Licences and Licence Applications
The Google Image of the entire Gulf of Mexico shows the awarded licence areas and areas under application held 100% by the Bahamas Petroleum Company plc  
or under JV with Statoil in the Commonwealth of The Bahamas. The 6 prospects and 30 leads of the Company are shown in the Company’s licence and application 
areas. The newly mapped prospects of the January 2011 survey are truly giant-size structures that occur in the collision boundary, or fold belt, of the southern 
Bahamas. The resource potential for the regional Gulf of Mexico are shown: Cuba, Florida, the U.S. Gulf of Mexico adjacent to the Mississippi delta and the southern 
Gulf of Mexico region of Mexico. Billions of barrels of oil have been generated, produced and are projected yet to be discovered throughout the region. Cuban 
authorities have announced that offshore drilling will commence this year in the blocks adjacent to and west of the Company’s licences.
Bahamas Petroleum Company plc Annual Report & Accounts 2010 4 Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
5 Chairman’s Statement
Alan Burns
Non-Executive Chairman and Founder
2010 was a busy year for Bahamas 
Petroleum Company and this success  
has continued into 2011 with our  
successful equity placing in March  
raising £45.6 million before expenses.
Dear Shareholder,
The oil business is one of the largest 
industries in the world and nations  
are divided into those that have oil 
and those that do not. Whilst there 
are strong geophysical indications  
of oil in our licence areas the only 
proof that there are deposits is to drill 
to find out. Noting that, The Bahamas 
has been drilled in the past and there 
is considerable drilling scheduled for 
this year in Cuban waters next to four 
of our licence areas, which gives us 
great encouragement. As we would 
expect, following the BP Macondo oil 
spill in April 2010, there has been a 
drive to update laws and regulations. 
We welcome this and understand the 
process is underway. We would only 
consider a drilling campaign under 
accepted international standards and 
procedures. In order to prepare, we 
have already taken the initiative and 
are undertaking an environmental 
impact assessment of our southern 
awarded licence and Cay Sal licence 
application areas.
We believe there is great incentive  
for drilling, both in terms of the 
requirement for oil products locally 
and for the oil revenues that the 
successful development of any oil  
find would bring for The Bahamas. 
For instance, The Bahamas 
government has recently revealed  
that the half-year Budget recurrent 
revenue estimates were down by  
a sum greater than 1% of gross 
domestic product (GDP). The 
Commonwealth of The Bahamas  
is particularly susceptible to oil 
pricing and imported supply  
as it is an archipelago with a 
dispersed population all relying on  
oil to provide their connection to the 
wider world. The islands are also 
highly dependent on tourism as a 
source of employment, which itself 
would not be possible without the 
supply of oil and gas for powering 
hotels, restaurants and other key 
tourist-related infrastructure. 
Furthermore, The Bahamas has been 
directly engaged in the oil trade for 
decades, with the major storage 
terminals on Grand Bahama providing 
significant revenues for the country  
so exploration activity can be viewed  
as an extension of its participation  
in the oil industry.
Bahamas Petroleum Company plc Annual Report & Accounts 2010 6 We are pleased that we have found 
very promising structures in southern 
Bahamas waters remote from any 
Bahamian population and near the 
maritime border with Cuba. Cuba has 
announced that it will be drilling a 
number of wells in its waters adjacent 
to our licences and we are planning  
to drill our first well in 2012. While we 
have the right, we also have an 
obligation to drill our first well and are 
fortunate that the Commonwealth of 
The Bahamas is a nation with a well 
respected legal system, with our 
licences having been approved by 
two successive governments and 
signed into existence by both the 
Minister and the Governor General.  
Of course, post the Macondo blowout 
we would expect some improved 
drilling and environmental regulations 
to be in place prior to drilling 
commencing next year. 
Although the probable target is as 
good as I have ever seen in 40 years 
in the oil business we cannot be 
certain of anything until it is drilled.  
If it becomes a discovery, The 
Bahamas’ economy will be changed 
rapidly, bringing enormous benefits  
to every Bahamian. We are very 
enthusiastic about drilling and  
I thank you all for your support over 
the years with the many delays this 
extraordinary project has suffered. 
On 17 January 2011, we announced 
that Paul Crevello would take over  
my role as Chief Executive and that  
I would move to the role of Non-
Executive Chairman. This has been 
planned for some time but was 
brought forward due to my having 
been diagnosed with a medical 
condition which required surgery 
followed by a period of rehabilitation.  
I am pleased to note that we already 
had a succession plan in place.  
Paul had already been enlarging  
his team in The Bahamas and I had 
been enlarging the engineering team, 
readying the Company for the  
drilling programme. Accordingly  
the Company has not suffered from 
my illness. In addition, Mike Proffitt  
is taking a more active role as  
Finance Director.
We have been extremely fortunate in 
recruiting some fine young Bahamians 
and I feel certain they will greatly help 
to take the Company forwards into 
the future.
2011 is set to be a strong year for  
the Company and we look forward  
to updating you on our progress  
in due course.
In closing, I would like to thank 
shareholders for their support during 
the year and for the many best wishes 
I have received. I also appreciate the 
cooperation of the government of  
The Bahamas over the years and  
wish all Bahamians the very best  
for the future.
Yours sincerely,
Alan Burns
Non-Executive Chairman and Founder
We are pleased that we have  
found very promising structures  
in southern Bahamas waters 
remote from any Bahamian 
population and near the maritime 
border with Cuba.
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
7 Environmental Report and the Oil Industry  
in The Bahamas
Bahamas Petroleum Company is dedicated to 
environmentally responsible exploration and 
preserving the environment for future generations.
The oil industry entered the 
Commonwealth of The Bahamas  
in 1947 with the drilling of the first 
exploration well on Andros Island. 
Over the following 40 years, four more 
wells were drilled across the country 
in onshore and offshore areas.  
In addition, two major oil storage 
terminals were constructed on 
Freeport and the country maintains 
one of the largest registries of oil 
transport tankers by deadweight 
tonnage in the world as at 1 January 2007 .
1
The five exploration wells in The 
Bahamas and five offshore wells 
drilled in adjacent waters of the 
Florida Keys were all drilled without 
incident. These wells were drilled  
in pristine marine coral reef 
environments or on adjacent islands 
and cays, and follow-up studies 
showed that the drilling activities did 
not impact the environment or the 
delicate coral reef communities 
(USGS). 
2
Andros #1 well, drilled in 1947 by 
Superior Oil Company, was drilled to  
a total depth of 14,585 ft (4,445 m) 
soon after World War II when oil 
companies began the search for  
more ‘Middle East’ type fields.  
Photograph taken during 
Environmental Baseline Study
Cay Sal, June 2010
1 Compiled by the UNCTAD secretariat  
on the basis of data supplied by Lloyd’s 
Register and published in the Review  
of Maritime Transport, 2007.
2
 Systematic Mapping of Bedrock and 
Habitats along the Florida Reef Tract – 
Central Key Largo to Halfmoon Shoal 
(Gulf of Mexico), USGS Professional 
Paper 1751 by Barbara H. Lidz, 
Christopher D. Reich, and Eugene A. 
Shinn http://pubs.usgs.gov/pp/2007/1751/
professional-paper/index.html.
Bahamas Petroleum Company plc Annual Report & Accounts 2010 8 The Bahamas with their thick deposits 
of limestone, dolomite and anhydrite 
are similar to the geology of 
supergiant fields in the Middle East. 
The well encountered non-
commercial gas. Cay Sal #1 was 
drilled in 1958 on the shallow interior 
of Cay Say Bank, which lies in the 
southwest Bahamas between Cuba 
and the Florida Keys. This well was an 
early exploration wildcat venture by 
George Bush Sr. and Howard Hughes’ 
Zapata Oil Company and drilled by 
Gulf Oil Company. The well was 
drilled to 18,905 ft (5,762 m) with oil 
shows from near 7,000 ft (2,134 m) to 
total depth with no recorded impact 
on the environment. The well was 
deemed to be the first wildcat well 
drilled in the greater offshore waters 
of the Gulf of Mexico. Two wells were 
drilled in succession in 1970 and 1971 
onshore Long Island and in offshore 
waters north of Great Isaac (i.e. of 
approximately 31 km north of Bimini). 
The last well to be drilled in The 
Bahamas was the Doubloon Saxon  
#1 in 1986. This well was drilled in the 
shallow waters of the southwest of 
Great Bahama Bank near Gunchos 
Cay. It is the deepest well drilled to 
date in the region with a total depth  
of 21,740 feet (6,626 m). 
All of the wells contained indications 
of oil and gas. One well in the Florida 
Keys produced a limited amount of oil 
and the Great Isaac flowed limited 
gas and condensate to the surface. 
These wells demonstrate that the 
carbonate (limestone and dolomite) 
reservoirs drilled in The Bahamas  
do not contain the highly pressured 
reservoirs that occur off the 
Mississippi Delta, such as the  
BP Macondo well. Overpressured 
reservoirs are not typical of  
carbonate reservoirs. 
Alongside oil exploration, there is  
a long history of crude oil and refined 
petroleum products being shipped 
through Bahamian waters with the 
country hosting the fourth largest  
oil and petroleum products storage 
terminal in the world in Freeport, 
Grand Bahama. Oil loading and 
storage facilities were first installed in 
Freeport in 1968 with the construction 
of a refinery by Chevron Corporation. 
The refinery is no longer in use but 
the storage facility has expanded 
considerably. Known as The Bahamas 
Oil Refining Company (BORCO), the 
storage terminal was sold in January 
2011 by First Reserve Corporation to 
Buckeye Partners LP. The new owner 
intends to add approximately 7.5 
million barrels of flexible petroleum 
product storage to the existing 21.6 
million barrel facility. The expansion 
and upgrades will be phased in  
over the next two to three years  
with estimates of the proposed 
expenditure for the 2011 upgrades 
ranging from $200 million to $250 
million for the expansion of the jetty 
structure, the inland dock and berth 
developments and the terminal 
storage tanks. 
Statoil ASA acquired the rights to 
South Riding Point terminal, 35 km 
east of BORCO on Grand Bahama, in 
2009 for US$263 million. Statoil is 
investing between $200  
and $250 million in a major expansion 
project, including upgrades and 
expansions of the jetty structure, the 
inland dock and berth developments 
and terminal storage tanks in 2011. 
Both South Riding Point and BORCO 
facilities are undergoing growth  
and upgrading.
In addition, the port authority and  
shipbuilding facilities in Freeport  
are capable of providing petroleum 
services support and modest  
marine construction. We have 
investigated the reality of building up 
compartmentalised FPSO (Floating 
Production Storage and Offloading) 
units. Freeport has the capacity for 
expansion of the port in the event 
there is growth related to the 
petroleum exploration industry.
In 2007, Bahamas Petroleum 
Company plc was granted five oil 
exploration licences in the territorial 
waters and maritime Exclusive 
Economic Zone of the Commonwealth 
of The Bahamas. The licences 
encompass an area of approximately 
15,676 km
2
 (3,873,546 acres).  
As part of the Company’s long-term 
commitment to the development of 
the petroleum sector in The Bahamas, 
the Company is working to highlight 
and address environmental 
challenges and risks associated with 
industrial development in the area.
Ms Roberta Quant, a Bahamian 
environmental scientist, joined 
Bahamas Petroleum Company  
in January 2011 to manage the 
environmental aspect of the Company 
and ensure that environmental 
challenges and concerns are handled 
in a professional and sensitive manner 
with the ultimate goal being to protect  
the environment of The Bahamas.  
Ms Quant has worked for the 
government of The Bahamas as  
an Environmental Regulator and 
Protector and has a great deal of 
experience in environmental protection. 
Her expertise complements Dr Crevello, 
the CEO of the Company, who 
graduated from the University  
of Miami, Rosentiel School of Marine 
and Atmospheric Sciences and has 
vast experience with assessing coral 
reefs and understands the fragility of 
the marine and coastal ecosystems. 
Environmentally 
Responsible 
Exploration
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
9 In June 2010, Bahamas Petroleum 
Company completed an 
environmental baseline study of the 
islands and islets of Cay Sal Bank, 
including Cay Sal (Island), Elbow Cay 
and Anguilla Cay with three marine 
and environmental graduate students 
from RSMAS University of Miami, 
Florida State University and Kansas 
State. The study showed that the 
beaches had varying amounts of 
minor contamination from tar residue, 
but overall the presence of tar was 
determined not to have been a 
contaminant from the Deep Horizon 
spill in the Gulf of Mexico. Preliminary 
analyses indicate the tar and asphalt 
found were derived from natural  
oil seeps. 
Cay Sal (Island) has less than 1% 
minor rocky coastline while the 
Anguilla shoreline is approximately 
60% rocky coast and Elbow Cay has 
no beaches and consists entirely  
of rocky cliff shoreline with 1 m  
to 10 m high cliffs. 
The Company successfully acquired 
2D seismic in June 2010 and January 
2011 by using the services of Spectrum 
ASA and Seabird Exploration (Osprey 
Explorer vessel) respectively. 
 
Both companies followed the 
International Association of 
Geophysical Contractors (IAGC)  
and the United Kingdom Joint Nature 
Conservation Committee (UK JNCC) 
guidelines for minimising the risk  
of injury or disturbance to marine 
mammals, as well as relevant local 
regulations. A scout vessel patrolled 
ahead of the seismic vessel in the 
course of monitoring the area, 
searching for marine mammals.  
In addition, the crew monitored the 
area but no marine mammals were 
identified during the surveys. 
Based on the positive results of  
the new 2D seismic the Company  
is progressing its exploration goals  
of initiating a 3D seismic survey in 
May 2011. A Letter of Award has been 
signed with CGGVeritas to use their 
Broadseis technology to acquire a 3D 
seismic survey commencing at the 
end of May 2011.
In late August 2010, as a result of  
the Deepwater Horizon rig explosion/
oil spill in the Gulf of Mexico the 
government of The Bahamas imposed 
a moratorium on the consideration  
of any new oil exploration licence 
applications in order to allow the 
government to review the lessons 
learned from the spill and to establish 
a regulatory regime. Bahamas 
Petroleum Company is supporting  
the government’s efforts to establish 
regulations. The Company’s exploration 
programme is not affected by the 
hold-up. 
Bahamas Petroleum Company has 
initiated an Environmental Impact 
Assessment (EIA) inclusive of an 
Environmental Management Plan 
(EMP), an oil spill model study and  
a seabed geochemical study in 
addition to the 3D seismic programme. 
The EIA and EMP will be the first  
step of a series of submittals to the 
government to pave the way forward 
to a drilling campaign on schedule  
for 2012.
Bahamas Petroleum Company 
believes that exploration and the 
drilling of wells can be done safely  
in The Bahamas. The Company  
is dedicated to the protection of the 
environment for future generations 
and will ensure that internationally 
accepted drilling practices, policies 
and procedures are in place prior  
to undertaking a drilling campaign.
Environmental Report and the Oil Industry  
in The Bahamas (continued)
10 Bahamas Petroleum Company plc Annual Report & Accounts 2010 CEO’s Report
Paul Crevello
Chief Executive Officer
2010 was an extremely positive year for Bahamas 
Petroleum Company and 2011 has had a very strong 
start with the new 2D seismic, share placing and 
initiation of the 3D seismic survey.
Dear Shareholder,
I am writing to you for the first time  
as Chief Executive of Bahamas 
Petroleum Company plc and have the 
good fortune to tell our shareholders 
that the past year has seen significant 
advances in our exploration programme. 
Highlights
 significant growth in shareholder 
value in the last quarter of 2010 
based, we believe, on the positive 
results of our seismic programmes 
and the investors’ belief in a sound 
exploration programme with very 
significant upside potential. 

first modern seismic survey in the 
southern Bahamas since 1987. 
Results of our 2D seismic surveys 
reveal giant structures up to 70 km 
long, with four-way vertical closure 
from 100 m to substantially over a 
kilometre which, in the view of the 
Board of the Company, are very 
exciting prospects. 

seismic, the Company has applied 
for two additional licences that 
cover an approximate total of 
6,210 km
2
 or 1,534,600 acres. 
These applications are currently 
under review by The Bahamian 
government.
 
of award with CGGVeritas to 
initiate a 3D seismic survey over 
the southern licences to further 
de-risk these prospects. 

Company completed placings  
of £20.6 million and £25 million 
respectively before expenses 
which has put the Company in a 
strong financial position, with the 
necessary financing now in place 
to accelerate its exploration 
programme. This raise has 
expanded the Company’s 
shareholder base with new 
institutions, whilst also receiving 
strong support from existing 
shareholders.
 
is progressing well and the 
companies have initiated an 
environmental impact assessment 
over Cay Sal Bank as requested 
by The Bahamian government.  
This will move forward the licence 
application process.  

discussions with potential 
additional farm-in partners. 
 
to drill our first well in 2012.  
Data Room,  
Isle of Man
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
11 The Company advanced its 
exploration programme in 2010 and 
the first quarter of 2011 by acquiring 
the first 2D seismic survey in the 
southern region of The Bahamas in 
over 25 years. The Company engaged 
Spectrum ASA to acquire an initial 
test survey of 194 km of 2D data 
designed to demonstrate the 
advances in modern seismic 
acquisition and technology over the 
vintage (1987 and older) seismic data. 
The vintage data was used by the 
Company to define the prospective 
500 million barrel leads reported in 
the Competent Persons Report 
published in 2007. 
The 2D seismic survey twinned 
selected vintage lines providing direct 
comparison of the new versus old 
seismic data. The test survey was 
unique in that we employed a 10 km 
long seismic cable versus the industry 
standard of 6 to 8 km. Previous 
vintage 1987 data was acquired using 
a short 4 km recording streamer.  
The longer cable and associated 
recording parameters were used 
because of the large size of the 
prospects, the broad curvature of  
the folds and the necessity to image 
deeper subsalt objectives. The 
Company took advantage of a seismic 
vessel transiting the region, resulting 
in significant cost savings.
The fully processed, Pre-Stack Time 
Migrated (PSTM) 2010 seismic data 
suggests that hydrocarbons are 
present in the southern area, 
indicated by what industry calls direct 
hydrocarbon indicators (DHI’s). DHI’s 
are interpreted indirectly by dim zones 
above the crest of structures, phase/
polarity changes at the crest of 
structures or by open sea floor vents, 
i.e. natural sea floor seeps, which are 
commonly associated with oil fields. 
The DHI’s, especially the vents, 
indicate an actively generating 
petroleum system.
Following the success of the June 
2010 survey, the Company engaged 
SeaBird Exploration (Osprey Explorer 
Vessel) in January 2011 and acquired 
a comprehensive, closely spaced 2D 
seismic survey in the southern fold 
belt. This survey was another first for 
the Company and The Bahamas in 
that it was the only closely spaced 
mid-water depth (i.e. ~ 500 m deep) 
survey to be undertaken in the 
southern Bahamas designed to map 
prospects. The survey (5 km to 10 km 
grid) focused on mapping the large 
fold belt prospects in our southern 
licences. The results are significant  
in that they define at least six major 
prospects that range in aerial size 
from 33 km
2
 (8,150 acres) to 465 km
2
 
(114,900 acres). Vertical 4-way 
closure, which is the maximum 
possible height for hydrocarbons  
to fill the structure, range from 100 m 
to as much as 1.5 km or more, 
depending on rock velocity 
properties. The seismic lines and 
associated maps clearly demonstrate 
the giant size and extent of the newly 
mapped prospects. This data is 
undergoing full processing through 
PSTM and will be passed on to Ryder 
Scott Consultants who will complete 
a resource evaluation of the prospects 
by the end of summer 2011.
The Company has awarded a 3D 
seismic contract to CGGVeritas to 
survey over the southern fold belt, 
which the Company will use to de-risk 
and prioritise the prospect portfolio. 
The Company intends to undertake  
a 2D survey over its northern licence 
where oil shows and a gas condensate 
reservoir were encountered in the 
Great Isaac #1 well. 
The joint venture licence application 
with Statoil over Cay Sal Bank  
is continuing to progress. The 
government of The Bahamas has 
requested that we undertake an 
Environmental Impact Assessment 
(EIA) over the bank as part of the 
steps of moving the licences forward 
to the review and approval stage and 
these licences were gazetted on  
22 April 2010 as part of this process. 
The 2010 BP Macondo oil spill 
created a global shock wave across 
the industry and caused governments 
to reassess their drilling policies and 
procedures. The government of The 
Bahamas requested that the EIA 
evaluate the potential risks of our 
exploration area/programme as a 
prerequisite to awarding the licences. 
We expect to have clarification on the 
awarding of these licences upon 
completion of the EIA evaluation.
At the year end, the Company had 
US$6.1 million in cash and has firmly 
raised an additional US$31.4 million 
(£20.6 million) before expenses in 
March 2011, with a further US$37.9 
million (£25 million) before expenses 
which followed shareholder approval 
at an Extraordinary General Meeting 
held on 11 April 2011. The proceeds 
will go towards the acquisition of  
3D seismic and 2D shallow seismic 
(US$35.2 million), Geochemical 
sniffer/multibeam (US$6.4 million)  
and the remainder (US$27.7 million) 
on working capital and other 
exploration costs.
All in all, 2010 was an extremely 
positive year for the Company and 
2011 has already got off to a very 
strong start with the new 2D seismic, 
share placing and initiation of the 3D 
seismic survey. 
Outlook
I anticipate that 2011 will see 
significant growth in the Company, 
with the potential completion of 
further farm-ins to best position the 
Company, such that we enter 2012 
ready to drill our first of these giant-
size prospects. The Board continues 
to look to the future with confidence.
Yours sincerely,
Paul Crevello,
Chief Executive Officer
CEO’s Report (continued)
Bahamas Petroleum Company plc Annual Report & Accounts 2010 12 1.   Bahamas Aircraft, Nassau Airport
2.  Bay Street, Downtown Nassau
3.  Super Yachts moored at the Atlantis 
Hotel, Paradise Island
2. 3.
1.
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
13 PRODUCTION LEVEL  ROYALTY RATE
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: US$0.92 per acre per annum charged for the area of a lease, deductible from royalty payments.
Income taxes: Nil in The Bahamas.
Bahamas Petroleum Company and Bahamas Petroleum Company/Statoil JV 
Exploration Licences
ASSET* HOLDER LICENCE AREA
The Bahamas  775,468 acres 
– Bain Licence (offshore) Bahamas Petroleum Company 3,138 km
2
The Bahamas    777,934 acres 
– Cooper Licence (offshore)   Bahamas Petroleum Company 3,148 km
2
The Bahamas  778,855 acres 
– Donaldson Licence (offshore) Bahamas Petroleum Company 3,152 km
2
The Bahamas     780,316 acres 
– Eneas Licence (offshore)    Bahamas Petroleum Company 3,158 km
2
The Bahamas  760,973 acres 
– Miami Licence (offshore) Bahamas Petroleum Company 3,080 km
2
* Interest for all licences: 100%.
Expiry date for all awarded licences: 26 April 2012 (granted two year extension).
APPLICATION** HOLDER LICENCE AREA
The Bahamas  777,900 acres 
– Islamorada Licence (offshore) Bahamas Petroleum Company plc/Statoil 3,148 km
2
The Bahamas    776,200 acres 
– Zapata Licence (offshore)   Bahamas Petroleum Company plc/Statoil 3,141 km
2
The Bahamas  774,600 acres 
– Falcones Licence (offshore) Bahamas Petroleum Company plc/Statoil 3,135 km
2
** Joint Venture Interest for all licences: Statoil – Bahamas Petroleum Company plc. 
APPLICATION*** HOLDER LICENCE AREA
The Bahamas  760,100 acres 
– Santaren Licence (offshore) Bahamas Petroleum Company 3,076 km
2
The Bahamas    774,500 acres 
– Andros Licence (offshore)   Bahamas Petroleum Company 3,141 km
2
*** July 2010 applications with 100% working interest. 
Approximate licence boundaries.
Statoil operator with majority interest.
Projected Q1 2013 to request three year renewal.
Operating Review
Royalty Rates, Lease Terms
Bahamas Petroleum Company plc Annual Report & Accounts 2010 14 Detail Detail
 Dr Paul Crevello has over thirty years’ experience in US domestic  
 and international exploration in more than 40 countries 
  University of Miami (Master of Science in Marine Geology) and Colorado School of Mines   –
(Doctor of Philosophy in Geology)
Marathon Oil (1978–1994) directed worldwide carbonate geologic exploration research –
 Founded SE Asia’s first university petroleum studies programme in 1994 and founded Petrex Asia   –
in 1997, developing it into a leading technical consulting firm 
 Numerous awards and distinctions from international societies for authorship and invited papers on  –
carbonate and sandstone reservoirs, AAPG International Distinguished Speaker, Chairman of JOIDES  
Ocean Drilling Programme and served on numerous committees and ancillary societies
Conducted research exploration in The Bahamas since 1975 –
Standing US and UK Consultants
 Mr Michael Coulthard, Subsea Completion Engineer –
Mr Jock Drummond, Seismic Processing Expert –
Dr James Edwards, Explorationist –
Mr James Ehrets, Reservoir Geologist and Engineer, Exploration Manager –
Dr Richard Inden, Carbonate Exploration and Sedimentology expert –
Dr Howard Johnson, Regional Exploration and Sedimentology expert –
Dr Charles Kerans, Carbonate Stratigrapher –
Dr Jon Kirtpatrick, Geophysicist and Seismic Specialist in Carbonate Exploration and Exploitation –
Prof. Dr Paul Olsen, Triassic-Jurassic Atlantic Rift Basin Expert –
Mr Paul Ozanich, Geophysicist and Interpreter –
Dr Mark Rowan, Structural Geologist, Expert in Gulf of Mexico and Fold and Thrust Belts –
Mr Ian Thomson, Drilling Engineer –
Dr Douglas Waples, Organic Geochemistry and Basin Modelling Expert –
 University Industrial Programmes
 University of Texas, Bureau of Economic Geology RCLR –
University of Utah, EGI –
Bahamas Petroleum Company Technical Team, Consultants
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
15 Operating Review (continued)
Giant Prospects – Bahamas Petroleum Company 
Map Structure Top of Cretaceous – PSTM Data
2011-2D PSTM Seismic Showing Top of Cretaceous Orange 
Horizon Mapped with the Newly Processed Data
Description: 2011-2D Seismic showing top of Cretaceous orange  
horizon mapped during survey to define structures
The processed PSTM (Pre-Stack Time 
Migration) such as the one shown  
here required several months to 
process with complex mathematical 
algorithms. These major structures 
were initially mapped during shipboard 
acquisition and verified the giant 4-way 
closure. The newly processed data 
confirms the size and closure of the 
initial shipboard interpretations and 
this table shows the exceptional size  
of each prospect.
The Cretaceous map shown was 
generated from the PSTM (Pre-Stack 
Time Migration) fully processed data. 
The horizon that the map is based on 
is the orange horizon shown in the 
underlying seismic cross-section. The 
bright areas on the map represent the  
highs on the horizon and the dark 
cool colours show that the horizon  
is very deep. The red and orange 
dashed lines outline the prospects.
The map illustrates four large structural 
folds that trend parallel to each other 
in a WNW ESE orientation. The folds, 
or anticlines, are separated by low 
synclines. Hydrocarbons are typically 
trapped in the crest of the anticlines. 
The structures range from 10 to 75 km 
long. The vertical four-way closure, 
which is the height to which oil can fill 
the structure, ranges from less than  
50 to 750 milliseconds in time. This is 
about 100 m to over 1.5 km thick.  
The seismic map demonstrates the 
prospects are indeed supergiant.  
Near term exploration will focus on  
3D seismic and sea bed geochemistry 
over these prospects and 2D seismic 
in the Miami licence.
Bahamas Petroleum Company plc Annual Report & Accounts 2010 16 3D Seismic Vessel Exploration Scenario
A seismic vessel acquiring 3D seismic 
over the southern fold belt. The vessel 
is towing six receiver cables shown in 
grey and an array of air guns (yellow). 
The cables can vary from 6 to 10 km 
long and separated by 100 m. The air 
gun array is towed immediately behind 
the vessel near the compressed air 
supply.
Size of Prospects Identified  
by January 2011 2D Survey
6-10 km
Cables can vary from  
6 to 10 km long
Top Cretaceous
Polygons Based on Lowest Closed 50 ms Contour, May 2011
SURFACE FOLD LENGTH (KM) SQ KM ACRES CLOSURE 2 – WAY TIME COMMENT COLOUR
Top Cret. A 59 205 50,600 150-200ms Based on 1.200 contour Red
Top Cret. B & C 75 524 129,400 400-750ms Based on 1.650 contour Red
Top Cret. B 71 350 86,400 200-650ms Based on 1.550 contour Yellow
Top Cret. B-N 37 76 18,800 150ms Based on 1.300 contour Blue
Top Cret. B-S 24 97 24,000 400ms Based on 1.300 contour Blue
Top Cret. C 19 72 17,800 300ms Based on 1.550 contour Yellow
Top Cret. D-N 24 76 18,800 <50ms Based on 1.900 contour Yellow
Top Cret. D-S 10 24 6,000 <50ms Based on 1.850 contour Yellow
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
17 Seismic grid plan undertaken by 
Norwegian seismic companies 
SeaBird Exploration (www.sbexp.
com) in 2011 and Spectrum ASA 
(www.spectrumasa.com) in 2010. 
Following various negotiations with 
other oil companies, it is expected 
that an additional partner will join our 
project post the structural definition 
and potential volumetrics determined  
by this more detailed survey. 
Operating Review (continued)
2011 2D Seismic grid  
and Mapped Prospects
It is expected that one or  
more partners will join our  
project post the Company’s 
completion of its structural  
and prospect evaluation  
and post the CPR resource  
evaluation by Ryder Scott.
Bahamas Petroleum Company plc Annual Report & Accounts 2010 18 19
1.  Clifton Pier Power Station, Nassau 
2. The Bahamas  fishing community
3. Cruise ships docked in Nassau Harbour
2. 3.
1.
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
19 Operating Review (continued)
Bahamas Petroleum Seismic Line June 2010 Survey
Reservoir and seals present across the northern field
2 km
Bahamas Petroleum Company plc Annual Report & Accounts 2010 20 The 2D seismic line was acquired in June 2010  
across the southern licences of Bahamas Petroleum 
Company plc. The 2D line shows two major folds that  
are approximately 10 km across and over 1 second  
of apparent vertical closure. These structures were 
mapped as prospects in the January 2011 2D survey 
with the left fold over 70 km long and with > 1.5 km  
of vertical 4-way closure, i.e., 1.5 km of fill potential.  
The right fold is about 50 km long and ranges from  
100 to 300 m of vertical 4-way closure. 
Seafloor Seep or vent seen on the ocean bottom
The enlarged views of both folds show lateral continuity 
of strata across the width of the structures and, 
importantly, the lack of faults in the core of the structure. 
The right flank shows indirect evidence of an active 
hydrocarbon system by the presence of the sea floor 
vent or open hole. Preservation of the vent indicates  
that hydrocarbons are currently being generated today. 
These features are common in areas of oil fields. The 
Company will undertake a seabed geochemistry study  
to evaluate these sea floor features.
2 km
2 km
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
21 The Bahamas office staff
Left to right: Paul Crevello, Roberta Quant, 
Ashli Munnings, Jobeth Coleby
Operating Review (continued)
The Company is pleased to announce 
that it has recently employed three 
Bahamian members of staff who are 
based at the Nassau office with the 
CEO, Paul Crevello.
Ashli Munnings is the Executive 
Assistant to the CEO. She has 
previously worked in Capital Markets 
and Prime Brokerage Sales in  
New York and brings a wealth  
of experience to the Company. 
Roberta Quant is the Environmental 
Scientist whose responsibilities are  
to ensure that health, safety and 
environmental policies are maintained 
to the highest international standards, 
promote activities of the Company 
throughout The Bahamas and engage 
petroleum and investment sectors. 
Roberta has worked with the 
Bahamas Environment, Science  
and Technology Commission (BEST) 
where she provided advice to the 
government of The Bahamas in the 
areas of environmental issues and 
policy development. 
Jobeth Coleby’s role is that of 
in-house Corporate Lawyer. She 
gained her dual Bachelor of Law 
degree with Business Management  
at Keele University, UK and 
completed her bar vocational course 
at Nottingham Trent University. She 
has worked for Bank of Nova Scotia 
as a contracted Compliance Officer, 
working alongside Bank Lawyers and 
the Financial Services Commission 
(FSC) to ensure organisations were 
efficiently and effectively adhering  
to laws and regulations. She was 
responsible for commercial 
customers of the Bank, carrying out 
due diligence, risk management and 
inspections of their operations for 
compliance with the financial policy  
of the FSC. This has enabled her to 
have a strong knowledge of Anti-Money 
Laundering laws, The Companies  
Act and regulations of the Country. 
Jobeth has an excellent knowledge  
of the legal system in The Bahamas 
and works closely with the management 
team to advise on legal and commercial 
risks associated with day to day 
business operations. She is also 
building a good working relationship 
with The Bahamas government.
Bahamas Petroleum Company plc Annual Report & Accounts 2010 22 Exploration Drilling 
Scenario
The diagram is of a dynamically 
positioned (DP) Semi-Submersible 
drilling the Bahamas Petroleum 
Company exploration well 
Perseverance #1 in a large four-way 
closure prospect of the southern fold 
belt. The well is shown with the drill 
bit in the Lower Cretaceous reservoir 
interval. Dynamic positioning enables 
the drill ship to maintain position in 
mid water depths without the need  
for anchors or seabed tethers. The 
water depth is 500 m (1,640 feet).  
The BOP (Blow Out Preventer)  
is shown connected at the seabed 
through a riser to the semi-sub. 
Several strings of casing have been 
set with drill string and the drill bit  
is shown drilling at several thousand 
metres below the sea bed in the 
Lower Cretaceous interval.
Inter-Island Mailboat, Bahamas
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
23 Operating Review (continued)
Overview
  A politically stable country  
with an uninterrupted 
parliamentary democracy  
of over 275 years
  Excellent fiscal terms and  
English-based Rule of Law 
  Benefits from proximity to 
extensive oil field service and 
infrastructure providers in  
US Gulf of Mexico 
  Close proximity to energy-hungry 
US market, both in the GoM and 
along the US Atlantic coast
Why The Bahamas?
Commonwealth of The Bahamas
Population: 310,426
GDP (US$ Bn): 7.38
GDP per capita (US$): 28,600
Unemployment rate (%): 14%
Median age (years): 29.9
Literacy: 96%
Key industries: Tourism, banking, cement, oil transhipment, salt,  
rum, aragonite, pharmaceuticals.
Source: CIA World Fact Book, Bahamas 
Department of Statistics – 29/12/2010
  Freeport is the major industrial centre of The  
Bahamas, with container facilities, oil off-loading 
terminals, dry dockage and an oil storage terminal.
 –  BORCO is the largest storage terminal in the 
Caribbean. Buckeye Partners completed its 
acquisition of 100% interest in BORCO in February 
2011 and plans to extend the existing 21.6 million 
barrel facility to 29.1 million barrels over the next  
two to three years.
 –  Statoil recently acquired South Riding Point Terminal 
for approximately $263 million and have committed  
to several hundred million dollars in upgrades to the 
facility and job growth.
  Ship registration under The Bahamas flag is the world’s 
fifth largest fleet and the world’s largest registry for oil 
tankers with several thousand vessels.
 –  Many of the most respected international ship-owning 
companies fly the Bahamian flag, including Exxon 
International, Maersk Line, Teekay Shipping and 
Chevron. Registered luxury vessels include the ships 
of Norwegian Cruise Lines and Holland-America 
Cruises along with cargo steamers, frigates, 
freighters, tankers and tugboats.
Industry in The Bahamas
BORCO Oil Storage Terminal at Freeport Industrial Port, 
The Bahamas
World shipping traffic including oil tankers near  
and through The Bahamas
Bahamas Petroleum Company plc Annual Report & Accounts 2010 24 Semi-Submersible – 
Exploration Drilling 
Scenario
Perspective of the semi-submersible 
from below shown penetrating rock 
layers and encountering oil in the 
folded strata. 
FPSO and Subsea 
Completion Scenario
The diagram shows a Floating 
Production, Storage and Offloading 
(FPSO) unit and a shuttle tanker on 
location over the subsea wells on the 
sea bed. Three producing wells are 
shown penetrating various levels of 
the Lower Cretaceous. The producing 
wells are connected through tubing  
to the subsea manifold at the sea bed 
for commingling before flowing up the 
risers to the FPSO for processing  
and storage. The shuttle tankers  
pull alongside the FPSO to offload 
produced oil for delivery to point  
of sales.
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
25 0
10
20
30
40
50
60
70
80
90
100
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
Nov 06
Jan 07
Mar 07
May 07
Jul 07
Sep 07
Nov 07
Jan 08
Mar 08
May 08
Jul 08
Sep 08
Nov 08
Jan 09
Mar 09
May 09
Jul 09
Sep 09
Nov 09
Jan 10
Mar 10
May 10
Jul 10
Sep 10
Nov 10
Jan 11
Mar 11
May 11
Volume (000)
GBP
Volume (000) Price
The Company raises £45.6 
million at a price of 18.75 
pence
Reverse Takeover 
of FGML by Bahamas 
Petroleum Company
Pre RTO – FGML History
The Company
and StatoilHydro sign JV 
Agreement for oil exploration  
in Bahamas waters
The Company begins to attract a number of other 
well known institutional investors and further 
broadens shareholder base
The Company raises £2.4 
million from institutional 
shareholders 
at a price of 3.5 pence
The Company 
announces 2D 
seismic programme 
results
Bahamas Govʼt  
clariﬁes position. 
Bahamas Petroleum 
Company existing 
licences una ected 
by suspension
The Company 
complete placing 
of £5.1million
The Company 
announces preliminary 
results of 2D seismic
Past performance is not a guide to future performance 
Bahamas Govʼt 
announces 
suspension of 
new licence 
applications
0
10
20
30
40
50
60
70
80
90
100
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
Jan 10 Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11
Volume (000)
GBP
The Company 
raises £45.6 
million
The Company 
announces 2D 
seismic programme 
results
Bahamas Govʼt  
clariﬁes 
position. 
Bahamas 
Petroleum 
Company 
existing licences 
una ected by 
suspension
The Company 
completes placing 
of £5.1million
The Company 
announces 
preliminary results 
of 2D seismic
Past performance is not a guide to future performance 
Bahamas Govʼt 
announces 
suspension of new 
licence applications
Volume (000) Price
Operating Review (continued)
5 Year Share Price
1 Year Share Price
Bahamas Petroleum Company plc Annual Report & Accounts 2010 26 Board of Directors
1.  Alan Burns: 
Non-Executive Chairman
Alan Burns is founder of the BPC 
Group and has a successful 39 year 
career in the oil business as Managing 
Director or Chairman of successful  
oil exploration and development 
companies. Alan has been involved  
in 28 new oil and gas field discoveries 
and developments including original 
discovery in Uganda.
5.  Edward Shallcross: 
Non-Executive Director
Eddie Shallcross is a Fellow of  
the Chartered Institute of Bankers  
and has over 40 years of experience 
in the financial sector. He has  
held non-executive directorships  
in a number of major international 
companies.
4.  Dursley Stott OBE: 
Non-Executive Director
Dursley Stott has played an important 
part in the Isle of Man’s financial 
growth during the last 50 years  
and was the chairman of a successful 
stockbroking firm on the Island.  
He is also an experienced 
international businessman.
2.  Dr Paul Crevello: 
Chief Executive Officer
Dr Paul Crevello is a carbonate 
reservoir oilfield expert and has  
wide international experience in the 
discovery of major oilfields. Paul also 
has considerable experience in 
Bahamas geological investigation.
3.  Michael Proffitt: 
Finance Director, Non-Executive
Michael Proffitt, a chartered 
accountant, is formerly an 
international hotel and resorts 
developer. Mike is a former resident  
of The Bahamas and well known  
in the Bahamian business world.
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
27 Corporate Governance
The UK Corporate Governance Code (formerly the Combined Code)
Bahamas Petroleum Company plc’s shares are traded on AIM and as such the Company is not subject to the 
requirements of the UK Corporate Governance Code on corporate governance, nor is it required to disclose its specific 
policies in relation to corporate governance. The Quoted Companies’ Alliance has issued a guidance booklet setting out  
a code of best practice and via the framework described below, the Board of Directors of Bahamas Petroleum Company 
plc seeks to operate within that code and within the UK Corporate Governance Code in so far as it is practicable for  
a company of its size.
The workings of the Board and its Committees
The Board of Directors
The Board meets regularly to discuss and consider all aspects of the Company’s activities. A Charter of the Board  
has been approved and adopted which sets out the membership, roles and responsibilities of the Board. The Board  
is primarily responsible for formulating, reviewing and approving the Group’s strategy, budgets, major items of capital 
expenditure and acquisitions.
The Board currently consists of the Chairman, the Chief Executive Officer, the Non-Executive Finance Director and two 
Non-Executive Directors. All Directors have access to the Company Secretary and the Company’s professional advisors.
Record of Board meetings
There were six Board meetings of the parent entity of the Group during the financial year.
Director Number of Board meetings attended
Alan Burns 6
Paul Crevello 6
Michael Proffitt 6
Dursley Stott 6
Edward Shallcross (appointed 1 February 2011) 0
 
Audit Committee
The Audit Committee comprises Edward Shallcross (Chairman) and Dursley Stott. The Audit Committee is primarily 
responsible for ensuring that the financial performance of the Company is properly reported on and monitored, and  
for reviewing the Auditor’s reports relating to the accounts and internal controls. A Charter of the Audit Committee has 
been approved and adopted which formally sets out the membership, roles and responsibilities of the Audit Committee.
Remuneration Committee
The Remuneration Committee comprises Dursley Stott (Chairman) and Edward Shallcross. A Charter of the Remuneration 
Committee has been approved and adopted which formally sets out the membership, roles and responsibilities of this 
committee.
Nomination Committee
The Nomination Committee comprises Alan Burns and Michael Proffitt, and is chaired by Alan Burns. It will meet at least 
twice a year and assist the Board in fulfilling its responsibilities in the search for and evaluation of potential new Directors 
and ensuring that the size, composition and performance of the Board is appropriate for the scope of the Company’s 
activities. It is recognised that shareholders of the Company have the ultimate responsibility for determining who should 
represent them on the Board.
Health and Safety Committee
The Company has also established a Health and Safety Committee which comprises Alan Burns and Paul Crevello.
Internal Control
The Directors acknowledge their responsibility for the Company’s system of internal control and for reviewing its 
effectiveness. The system of internal control is designed to manage the risk of failure to achieve the Company’s strategic 
objectives. It cannot totally eliminate the risk of failure but will provide reasonable, although not absolute, assurance 
against material misstatement or loss.
Going Concern
The Directors consider that the Company has adequate financial resources to enable it to meet its financial obligations 
through to the end of 2012 from existing liquid cash resources. For this reason they continue to adopt the going concern 
basis of preparing the financial statements. Further information regarding the appropriateness of the use of the going 
concern assumption in the basis of preparation can be found in note 2.1 to the financial statements. 
Bahamas Petroleum Company plc Annual Report & Accounts 2010 28 Directors’ Report
Your Directors present their report on the consolidated entity (referred to hereafter as the “Group”) consisting of  
Bahamas Petroleum Company plc (the ‘Company’) and the entities it controlled at the end of, or during, the year  
ended 31 December 2010.
Directors
The following persons were Directors of the Parent Company during the whole of the financial year and up to the date  
of this report unless otherwise stated:
Alan Burns
Paul Crevello
Michael Proffitt
Dursley Stott 
Edward Shallcross – Appointed 1 February 2011
Further details of the above Directors can be found on the Company’s website: www.bpcplc.com.
Principal activity
The principal activity of the Group consists of oil and gas exploration in the Commonwealth of The Bahamas.
Results and dividends
The results of the Group for the year are set out on page 34 and show a loss for the year ended 31 December 2010  
of $5,318,458 (2009: loss of $2,425,421).
The Directors do not recommend payment of a dividend (2009: nil).
Review of operations
During the year the Group underwent a Scheme of Arrangement which saw the redomicile of the Group from the Falkland 
Islands to the Isle of Man. The Scheme of Arrangement is described in greater detail in note 21 of the consolidated 
financial statements.
The Group undertook two placements of ordinary shares during the year, issuing a total of 189,842,860 ordinary shares 
and raising a total of $10,959,806 in funds net of fees.
The Group also saw the exercise of all outstanding share options during the year, resulting in the issue of 7,896,398 
ordinary shares to option holders and raising $574,882 in funds. 
Exploration work undertaken in the year has included the conducting of an environmental baseline survey in the Cay  
Sal region in June and the shooting of 2D seismic data in July. Analysis of the data acquired has allowed the Group to 
advance its understanding of the potential resource in the southern licence areas and has allowed the targeting of a more 
extensive seismic survey completed in January 2011. Preliminary results of shipboard analysis have proved positive with 
final results of the detailed analysis expected by the end of summer 2011.
Subsequent to the year end, on 16 March 2011 the Company announced the placement of 233,100,000 new ordinary shares 
at 18.75 pence per share, raising gross proceeds of £45.6 million in total. Of this placing, 110,000,000 ordinary shares were 
allotted on 17 March 2011 with the remaining 133,100,000 ordinary shares being allotted following shareholder approval at 
the Extraordinary General Meeting of the Members of the Company on 11 April 2011. It is intended that the proceeds of this 
placement be used to advance the Group’s technical work programme in its licence areas.
Risks and uncertainties
Details of the Group’s financial risks are set out in note 3 of the consolidated financial statements.
Significant changes in the state of affairs
Significant changes in the state of affairs of the Group during the financial year were as follows:
     2010
     $
Funds raised through placement of ordinary shares    11,534,688
              
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
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Accounts
29 Reporting currency
The consolidated financial statements are presented in United States Dollars, which is the functional and presentation 
currency of the Company, as this is the currency of the primary economic environment in which the Group operates. 
Substantial shareholdings
The following table represents shareholdings of 3% or more as at 31 December 2010.
Name    Number of shares % of shareholding
Fidelity    52,445,300 5.31%
Morgan Stanley Investment Management    50,769,469 5.14%
TD Waterhouse Investor Services    49,992,579 5.06%
Hargreaves Lansdown Asset Management    47,931,939 4.85%
Barclays Wealth    44,209,500 4.48%
Halifax Share dealing    44,130,915 4.47%
Majedie Asset Management    36,949,086 3.74%
JM Finn & Co    30,685,717 3.11%
Directors’ interests
The interests in the Group at the balance sheet date of all Directors who served on the board of the Parent Company 
during the year are stated below.
Shareholdings
   Percentage of  Percentage of  
  Number of shares total issued Number of shares total issued
Name  31 December 2010 share capital 31 December 2009 share capital
Alan Burns  34,820,000 3.53% 44,820,000 5.22%
Paul Daniel Crevello
1
  33,030,000 3.35% 33,030,000 3.84%
Michael Proffitt
o
  12,500,000 1.27% 18,360,000 2.14%
Dursley Stott  315,000 0.03% – –
o
  12,350,000 shares held beneficially for Michael Proffitt through Gumbo Investments Limited, 150,000 shares held  
by Virginia Proffitt, spouse of Michael Proffitt.
1
  Total beneficial shareholding of Paul Crevello. 17,730,000 of these shares are held by Petroleum Geoscience 
International LLC (2009: 17,730,000) and 15,300,000 are held by Petrexasia Consulting LLC (2009: 15,300,000).
Options
The Group did not have any share options in issue to any Director serving during the years ended 31 December 2010  
and 2009. Subsequent to the year end the Company issued share options to Directors of the Company, see post balance 
sheet events note below. 
Details of share options in issue during the year are found in note 17 of the consolidated financial statements.
Directors’ emoluments
    31 December 2010 31 December 2009 
    Group Group
    $ $
Directors’ fees and salaries    1,718,987 586,637
  
Company’s policy on payment of creditors
Liabilities are recognised for amounts to be paid in the future for goods or services rendered. Trade accounts are normally 
settled within 30 days.
Post balance sheet events
On 17 January 2011 the Company announced the retirement of Alan Robert Burns as Chief Executive Officer of the Group 
and the appointment of Paul Daniel Crevello to this role. Mr Burns continues to serve the Group as Non-Executive Chairman.
Directors’ Report (continued)
Bahamas Petroleum Company plc Annual Report & Accounts 2010 30 On 3 February 2011 the Group completed the acquisition of 1,100 km of 2D seismic lines in its southern licence areas. 
Detailed analysis results are expected by the end of summer 2011.
On 16 March 2011 the Company announced the placement of 233,100,000 new ordinary shares at 18.75 pence per share, 
raising gross proceeds of £45.6 million in total. Of this placing, 110,000,000 ordinary shares were allotted on 17 March 
2011 with the remaining 133,100,000 ordinary shares being allotted following shareholder approval at the Extraordinary 
General Meeting of the Members of the Company on 11 April 2011. It is intended that the proceeds of this placement be 
used to advance the Group’s technical work programme in its licence areas.
On 30 March 2011 the Company signed a Letter of Award with CGG Veritas to carry out the 3D seismic survey across  
the Company’s southern licence area. 
On 12 April 2011 the Company issued 18 million share options to Directors, staff and consultants. The options have  
an expiry period of five years, an exercise price of 21.25p and are split into two tranches, 50% vesting on grant and 50% 
vesting when the share price of the Company reaches 50 pence. Details of options granted to Directors are as below:
     Total number 
    Exercise of ordinary 
   Number of price per shares held
   options granted ordinary share under option
Paul Crevello   4,000,000 21.25p 4,000,000
Alan Burns   3,000,000 21.25p 3,000,000
Mike Proffitt   2,500,000 21.25p 2,500,000
Dursley Stott   1,500,000 21.25p 1,500,000
Edward Shallcross   1,500,000 21.25p 1,500,000
Total   12,500,000  12,500,000
Auditor and disclosure of information to auditor
The Directors have taken all the steps that they ought to have taken to make themselves aware of any information  
needed by the Group’s auditor for the purposes of their audit and to establish that the auditor is aware of that information. 
The Directors are not aware of any relevant audit information of which the auditor is unaware.
PricewaterhouseCoopers LLC, being eligible, have indicated their willingness to continue in office and will be reappointed 
at the next Annual General Meeting of the Company’s members.
Michael Proffitt
Finance Director, Non-Executive
27 April 2011 
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
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Accounts
31 The Directors are responsible for preparing the Annual Report and the Group and Parent Company financial statements  
in accordance with applicable Isle of Man law and International Financial Reporting Standards as adopted by the European 
Union (IFRS).
Isle of Man Company law requires the Directors to prepare Group and Parent Company financial statements for each 
financial year. Under that law the Directors have elected to prepare the Group and Parent Company financial statements 
in accordance with IFRS. The financial statements are required by law to give a true and fair view of the financial position 
of the Group and Parent Company and the financial performance of the Group for that period. In preparing those Group 
and Parent Company financial statements the Directors are required to:
Select suitable accounting policies and then apply them consistently; Make judgements and estimates that are reasonable and prudent; Present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
Provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users  to understand the impact of particular transactions, other events and conditions on the entity’s financial position and 
financial performance;
State that the Group and Parent Company financial statements comply with IFRS, subject to any material departures disclosed and explained in the financial statements; and
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and Parent Company will continue in business, in which case there should be supporting assumptions or qualifications  
as necessary.
The Directors confirm that they have complied with the above requirements in preparing the Group and Parent Company 
financial statements.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group 
and Parent Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Group 
and Parent Company and enable them to ensure that the Group and Parent Company financial statements comply with 
the Isle of Man Companies Acts 1931 to 2004. They are also responsible for safeguarding the assets of the Group and 
Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the Company’s website. Legislation in the Isle of Man 
governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Michael Proffitt
Finance Director, Non-Executive
27 April 2011 
Statement of Directors’ Responsibilities
Bahamas Petroleum Company plc Annual Report & Accounts 2010 32 Independent auditor’s report to the members of Bahamas Petroleum Company plc
Report on the Financial Statements
We have audited the accompanying Group financial statements of Bahamas Petroleum Company plc which comprise  
the consolidated balance sheet as of 31 December 2010 and the consolidated statement of comprehensive income, 
consolidated statement of changes in equity and consolidated cash flow statement for the year then ended and  
a summary of significant accounting policies and other explanatory notes. 
Directors’ Responsibility for the Financial Statements
The Directors are responsible for the preparation and fair presentation of these Group financial statements in accordance 
with applicable Isle of Man law and International Financial Reporting Standards as adopted by the European Union, and 
for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are 
free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility 
Our responsibility is to express an opinion on these financial statements based on our audit. This report, including the 
opinion, has been prepared for and only for the Company’s Members as a body in accordance with Section 15 of the Isle 
of Man Companies Act 1982 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility 
for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where 
expressly agreed by our prior consent in writing.
We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply 
with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the group financial 
statements are free from material misstatement. 
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial 
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of  
material misstatement of the group financial statements, whether due to fraud or error. In making those risk assessments,  
the auditor considers internal control relevant to the entity’s preparation and fair presentation of the Group financial 
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose  
of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the 
appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors,  
as well as evaluating the overall presentation of the Group financial statements. 
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 
Opinion
In our opinion:
The Group financial statements give a true and fair view of the financial position of the Group as of 31 December 2010, and of its financial performance and its cash flows for the year then ended in accordance with International Financial 
Reporting Standards as adopted by the European Union; and 
The Group financial statements have been properly prepared in accordance with the Isle of Man Companies Acts  1931 to 2004. 
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Isle of Man Companies Acts 1931 to 2004 require 
us to report to you if, in our opinion:
We have not received all the information and explanations necessary for the purposes of our audit; and Certain disclosures of Directors’ loans and remuneration specified by law have not been complied with. PricewaterhouseCoopers LLC
Chartered Accountants
Douglas, Isle of Man
27 April 2011 
Auditor’s Report
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
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Accounts
33     2010 2009 
    Group Group
   Note $ $
Continuing operations: 
Employee benefit expense   6 (2,006,305) (924,056)
Depreciation and amortisation expense   11 (38,779) (92,056)
Loss on disposal of property, plant and equipment    – (13,147)
Other expenses   7 (3,335,161) (1,400,188)
Operating loss    (5,380,245) (2,429,447)
    
Finance income   5 – 4,026
    
Loss before income tax    (5,380,245) (2,425,421)
    
Income tax credit   8 61,787 –
Loss for the year    (5,318,458) (2,425,421)
    
Other comprehensive income:    
Currency translation differences    106,615 (231,913)
    
Other comprehensive income for the year, net of tax    106,615 (231,913)
    
Total comprehensive income for the year    (5,211,843) (2,657,334)
    
Loss per share for loss attributable to equity holders of the Company:   
Basic and diluted earnings per share (expressed in cents per share)  9 (0.61) (0.31)
    
The notes on pages 38 to 52 form part of these consolidated financial statements.
Consolidated Statement of Comprehensive Income 
For the year ended 31 December 2010
Bahamas Petroleum Company plc Annual Report & Accounts 2010 34     2010 2009 
    Group Group
   Note $ $
ASSETS    
Non-current assets    
Cash not available for use   10 325,046 119,555
Property, plant and equipment   11 189,779 18,706
Intangible exploration and evaluation assets   12 5,024,331 4,063,824
     5,539,156 4,202,085
Current assets    
Cash and cash equivalents   13 6,068,558 1,337,885
Other receivables   14 896,246 469,677
     6,964,804 1,807,562
    
Total assets    12,503,960 6,009,647
    
LIABILITIES    
    
Current liabilities    
Trade and other payables   15 364,980 271,817
    
Total liabilities    364,980 271,817
    
EQUITY    
Ordinary shares   16 29,359 23,242
Share premium reserve   16 8,037,595 –
Merger reserve   16 77,130,684 73,639,708
Reverse acquisition reserve    (53,846,526) (53,846,526)
Share-based payments reserve   17 425,666 347,361
Other reserves    – (106,615)
Retained earnings    (19,637,798) (14,319,340)
Total equity    12,138,980 5,737,830
    
Total equity and liabilities    12,503,960 6,009,647
The financial statements on pages 34 to 52 were approved and authorised for issue by the Board of Directors on  
27 April 2011 and signed on its behalf by:
Paul Crevello   Michael Proffitt
Director    Finance Director, Non-Executive 
The notes on pages 38 to 52 form an integral part of these financial statements.
Consolidated Balance Sheet 
As at 31 December 2010
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
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Accounts
35      Share 
  Share  Reverse based 
 Share premium Merger acquisition payment Other Retained Total 
 capital reserve reserve reserve reserve reserves earnings equity
 $ $ $ $ $ $ $ $
        
At 1 January 2009  
– as previously  
reported 28,764 73,634,186 – (53,846,526) 300,139 125,298 (11,893,919) 8,347,942
 
Reorganisation  
– Scheme of  
Arrangement (5,522) (73,634,186) 73,639,708 – – – – –
 
At 1 January  
2009 – after  
reorganisation 23,242 – 73,639,708 (53,846,526) 300,139 125,298 (11,893,919) 8,347,942
        
Total  
comprehensive  
income for the year – – – – – (231,913) (2,425,421) (2,657,334)
        
Share options –  
value of services – – – – 47,222 – – 47,222
      
Balance at  
31 December  
2009 – after  
reorganisation 23,242 – 73,639,708 (53,846,526) 347,361 (106,615) (14,319,340) 5,737,830
        
Balance at  
1 January  
2010 – after  
reorganisation 23,242 – 73,639,708 (53,846,526) 347,361 (106,615) (14,319,340) 5,737,830
        
Total comprehensive  
income for the year – – – – – 106,615 (5,318,458) (5,211,843)
        
Share options  
– value of services – – – – 78,305 – – 78,305
        
Issue of  
ordinary shares 6,117 8,037,595 3,490,976 – – – – 11,534,688
        
Balance at  
31 December  
2010 – after  
reorganisation 29,359 8,037,595 77,130,684 (53,846,526) 425,666 – (19,637,798) 12,138,980
The notes on pages 38 to 52 form part of these consolidated financial statements.
Consolidated Statement of Changes in Equity 
For the year ended 31 December 2010
Bahamas Petroleum Company plc Annual Report & Accounts 2010 36     2010 2009 
    Group Group
   Note $ $
Cash flows from operating activities   
Payments to suppliers and employees   18 (5,422,619) (2,823,096)
Net cash used in operating activities    (5,422,619) (2,823,096)
   
Cash flows from investing activities   
Purchase of property, plant and equipment    (209,852) –
Proceeds from sale of property, plant and equipment    – 4,619
Payments for exploration and evaluation assets   12 (960,507) (8,237)
Deposit (payments)/repayments for bank guarantees   10 (205,491) 1,085,061
Interest received   5 – 4,026
Net cash (used in)/generated by investing activities   (1,375,850) 1,085,469
   
Cash flows from financing activities   
Proceeds from issuance of ordinary shares   16 11,534,688 –
Net cash generated from financing activities    11,534,688 –
   
Net increase/(decrease) in cash and cash equivalents   4,736,219 (1,737,627)
   
Cash and cash equivalents at the beginning of the year  13 1,337,885 3,004,451
   
Effects of exchange rate changes on cash and cash equivalents   (5,546) 71,031
   
Cash and cash equivalents at end of year   13 6,068,558 1,337,855
   
The notes on pages 38 to 52 form part of these consolidated financial statements.
Consolidated Cash Flow Statement 
For the year ended 31 December 2010
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
37 1 General information 
Bahamas Petroleum Company plc (“the Company”) and its subsidiaries (together “the Group”) is the holder of several  
oil and gas exploration licences issued by the government of the Commonwealth of The Bahamas.
The Company is a limited liability company incorporated and domiciled in the Isle of Man. The address of its registered 
office is IOMA House, Hope Street, Douglas, Isle of Man.
The Company has two directly and five indirectly 100% owned subsidiaries as follows:
Name Country of incorporation Holding
BPC Jersey Limited Jersey 100% Direct
BPC (Falklands) Limited Falklands 100% Direct
BPC Limited (“BPC Limited (Bahamas)”) Bahamas 100% Indirect
Bahamas Offshore Petroleum Ltd Bahamas 100% Indirect
Island Offshore Petroleum Ltd Bahamas 100% Indirect
Sargasso Petroleum Ltd Bahamas 100% Indirect
Privateer Petroleum Ltd Bahamas 100% Indirect
   
The names of the Directors in office for the parent entity Bahamas Petroleum Company plc at any time during or since the 
end of the year are:
Alan Burns Non-Executive Chairman
Paul Crevello Chief Executive Officer
Michael Proffitt Finance Director, Non-Executive
Dursley Stott Non-Executive Director
Edward Shallcross Non-Executive Director (appointed 1 February 2011)
The Directors continue in office to the date of this report unless otherwise stated.
The loss of the Group for the year ended 31 December 2010 amounted to $5,318,458 (31 December 2009: $2,425,421) 
arising from the Group’s corporate expenditure as well as expenditure in administering the five oil and gas exploration 
licences. 
The sources of liquidity for the Group during 2010 have been the placing of new ordinary shares. The commitments of  
the Group are set out in note 19 and it is the intention of the Group that the main source of liquidity for operations and 
commitments for the next twelve months will be from existing cash balances and further placement of ordinary shares. 
These Group consolidated financial statements were authorised for issue by the Board of Directors on 27 April 2011.
2 Summary of significant accounting policies 
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. 
These policies have been consistently applied to all the years presented, unless otherwise stated. 
2.1 Basis of preparation 
The consolidated financial statements of Bahamas Petroleum Company plc reflect the results and financial position of the 
Group for the year ended 31 December 2010 and have been prepared in accordance with International Financial Reporting 
Standards (IFRS) as adopted by the European Union (EU) and have been prepared under the historical cost convention. 
On 15 June 2010, the Company underwent a Scheme of Arrangement which resulted in the redomicile of the Company 
from the Falkland Islands to the Isle of Man. The Scheme of Arrangement is explained in greater detail in note 21.
Notes to the Consolidated Financial Statements
Bahamas Petroleum Company plc Annual Report & Accounts 2010 38 The Scheme of Arrangement falls outside the scope of IFRS 3 “Business Combinations”. Accordingly, following the 
guidance regarding the selection of appropriate accounting policies provided by IAS 8 “Accounting policies, changes  
in accounting estimates and errors”, the Scheme of Arrangement has been accounted for in these financial statements 
using the principles of merger accounting. This policy reflects the economic substance of the Scheme of Arrangement. 
Although the Scheme of Arrangement did not become effective until 15 June 2010, the consolidated financial statements 
for the year ended 31 December 2010 are presented as if the Scheme of Arrangement had been effective on 1 January 
2009. In accordance with the requirements of merger accounting, the comparative information in these consolidated 
financial statements has been extracted from the BPC Limited consolidated financial statements for the year ended  
31 December 2009. Those consolidated financial statements incorporated the results of BPC (Falklands) Limited and  
its subsidiary undertakings for the financial year ended 31 December 2009. Earnings per share are unaffected by the 
Scheme of Arrangement.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates.  
It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The 
areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant  
to the financial statements, are disclosed in note 4.
Going concern
These financial statements have been prepared on a going concern basis, which assumes that the Group will be able  
to meet its liabilities as and when they fall due for the foreseeable future.
The Directors have prepared cash flow forecasts that indicate that the Group will be able to meet its financial obligations 
through to the end of 2012 from its existing liquid cash resources and post year end placements of ordinary shares.
Additional cash resources may become available to the Group following the granting of three new exploration licences  
in the Bahamas resulting in the completion of the farm in agreement with Statoil and receipt of consideration funds. 
However, the Group’s ability to meet its obligations beyond 2012 is dependent on either further fund raising, completion  
of the Statoil farm in agreement or the agreement of further farm in arrangements of the Group’s licences.
a) Standards, amendments and interpretations relevant to the Group which became effective in 2010
IAS 36 (amendment), ‘Impairment of assets’, effective 1 January 2010. The amendment clarifies that the largest cash-generating unit (or group of units) to which goodwill should be allocated for the purposes of impairment testing is 
an operating segment, as defined by paragraph 5 of IFRS 8, ‘Operating segments’ (that is, before the aggregation of 
segments with similar economic characteristics).
IFRS 2 (amendments), ‘Group cash-settled share-based payment transactions’. Effective from 1 January 2010.  
In addition to incorporating IFRIC 8, ‘Scope of IFRS 2’, and IFRIC 11,’IFRS 2 – Group and treasury share transactions’, 
the amendments expand on the guidance in IFRIC 11 to address the classification of group arrangements that were  
not covered by that interpretation.
b) Standards, amendments and interpretations to existing standards that are relevant to the Group but not yet 
effective and have not been early adopted
IFRS 9, ’Financial instruments’, issued in November 2009. This standard is the first step in the process to replace  IAS 39, ‘financial instruments: recognition and measurement’. IFRS 9 introduces new requirements for classifying and 
measuring financial assets and is likely to affect the Group’s accounting for its financial assets. The standard is not 
applicable until 1 January 2013 but is available for early adoption. However, the standard has not yet been endorsed  
by the EU.
Revised IAS 24 (revised), ‘Related party disclosures’, issued in November 2009. It supersedes IAS 24, ‘Related  party disclosures’, issued in 2003. IAS 24 (revised) is mandatory for periods beginning on or after 1 January 2011. 
Earlier application, in whole or in part, is permitted. However, the standard has not yet been endorsed by the EU.
The Directors do not anticipate that the adoption of these standards in future periods will have a material impact on  
the Group’s or the Company’s results.
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
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Accounts
39 2 Summary of significant accounting policies (continued)
2.2 Basis of consolidation 
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the 
Company (its subsidiaries) made up to 31 December each year. Control is achieved where the Company has the power to 
govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive 
income from the effective date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used 
in line with those used by the Group.
All intra-group transactions, balances, income and expenses (including unrealised gains and losses on transactions between 
group companies) are eliminated on consolidation.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. 
Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration 
paid or received is recognised directly in equity and attributed to the Group.
The financial statements consolidate the results, cash flows and assets and liabilities of the Company and its wholly 
owned subsidiary undertakings.
2.3 Segment reporting
All of the Group’s business activities relate to oil and gas exploration activities in the Commonwealth of The Bahamas. 
The business is managed as one business segment by the chief operating decision maker (“CODM”), who has been 
identified as the Chief Executive Officer (“the CEO”). The CODM receives reports at a consolidated level and uses those 
reports to assess business performance. It is not possible to assess performance properly using the financial information 
collected at the subsidiary level.
2.4 Foreign currency translation
(i) Functional and presentation currency 
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary 
economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are 
presented in United States Dollars, which is the Company’s functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates 
of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the 
translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised 
in the statement of comprehensive income. 
(iii) Group companies
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) 
that have a functional currency different from the presentation currency are translated into the presentation currency  
as follows:
Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;
Income and expenses for each statement of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which 
case income and expenses are translated at the dates of the transactions); and 
All resulting exchange differences are recognised as a separate component of equity. Notes to the Consolidated Financial Statements (continued)
Bahamas Petroleum Company plc Annual Report & Accounts 2010 40 2.5 Property, plant and equipment 
Property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that  
is directly attributable to the acquisition of the items. 
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only 
when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item 
can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance 
are charged to the statement of comprehensive income during the reporting period in which they are incurred.
Depreciation on assets is calculated using the straight line method to allocate their cost, net of their residual values,  
over their estimated useful lives, as follows:
– Computer hardware   3 years
– Computer software   3 years
– Furniture, fittings and equipment  4 years
– Motor vehicles    5 years
– Leasehold improvements  Over the life of the lease
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is 
greater than its estimated recoverable amount (note 2.6).
Gains and losses on disposals are determined by comparing proceeds with carrying amount and are recognised within 
‘Loss on disposal of fixed assets’ in the consolidated statement of comprehensive income. 
2.6 Impairment of assets 
Tangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment  
or more frequently if events or changes in circumstances indicate that they might be impaired. Assets that are subject  
to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying 
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying value 
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value 
in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately 
identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-
generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal 
of the impairment at each reporting date. 
2.7 Exploration and evaluation assets
Exploration and evaluation expenditure incurred which relates to more than one area of interest is allocated across the 
various areas of interest to which it relates on a proportionate basis. Exploration and evaluation expenditure incurred by 
or on behalf of the Group is accumulated separately for each area of interest. The area of interest adopted by the Group  
is defined as a petroleum title.
Expenditure in the area of interest comprises net direct costs and an appropriate portion of related overhead expenditure, 
but does not include the general overheads or administrative expenditure not having a specific nexus with a particular 
area of interest.
Exploration expenditure for each area of interest, other than that acquired from the purchase of another entity, is carried 
forward as an asset provided that one of the following conditions is met:
The costs are expected to be recouped through successful development and exploitation of the area of interest, or alternatively by its sale; and
Exploration and/or evaluation activities in the area of interest have not, at the reporting date, reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and 
significant operations in, or in relation to, the area of interest are continuing.
Exploration expenditure which fails to meet at least one of the conditions outlined above is written off. Costs incurred  
in drilling exploration wells that fail to encounter significant hydrocarbons are written off in the year of failure.
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
41 2 Summary of significant accounting policies (continued)
Exploration assets acquired are reassessed on a regular basis and related costs are carried forward provided that at least 
one of the conditions outlined above is met.
Expenditure is not carried forward in respect of any area of interest unless the Group’s right of tenure to that area of 
interest is current.
2.8 Financial assets
Other receivables
Other receivables are non derivative financial assets with fixed or determinable payments that are not quoted in an active 
market. They are included in current assets, except for those with maturities greater than 12 months after the balance 
sheet date which are classified as non current assets. Other receivables are included in the balance sheet (note 14).
2.9 Cash and cash equivalents
For cash flow statement presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call 
with financial institutions, other short term, highly liquid investments with original maturities of three months or less that 
are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and 
bank overdrafts. Bank overdrafts, where applicable, are shown within borrowings in current liabilities on the balance 
sheet.
2.10 Share capital 
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are 
shown in equity as a deduction, net of tax, from the proceeds.
2.11  Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which 
are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade payables are recognised 
initially at fair value and subsequently measured at amortised cost using the effective interest method.
2.12 Employee benefits
(i) Wages and salaries, annual leave and sick leave 
Liabilities for wages and salaries, including non monetary benefits, expected to be settled within 12 months of the 
reporting date are recognised in other payables in respect of employees’ services up to the reporting date and are 
measured at the amounts expected to be paid when the liabilities are settled.
(ii) Share-based compensation
The Group operates a share-based compensation plan. The fair value of the employee services received in exchange  
for the grant of the options is recognised as an expense. The total amount to be expensed over the vesting period  
is determined by reference to the fair value of the options granted, excluding the impact of any non-market vesting 
conditions (for example, profitability and sales growth targets). Non-market vesting conditions are included in assumptions 
about the number of options that are expected to vest. At each balance sheet date, the Group revises its estimates of the 
number of options that are expected to vest. It recognises the impact of the revision to original estimates, if any, in the 
income statement, with a corresponding adjustment to equity. 
The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and 
share premium when the options are exercised.
(iii) Bonuses
The Group recognises a liability and an expense for bonuses. Bonuses are approved by the board and a number of factors 
are taken into consideration when determining the amount of any bonus payable, including the recipient’s existing salary, 
length of service and merit. The Group recognises a provision where contractually obliged or where there is a past practice 
that has created a constructive obligation. 
2.13 Revenue recognition 
Interest income
Interest income is recognised on a time proportion basis using the effective interest method. 
2.14 Leases
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group as lessee  
are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) 
are charged to the income statement on a straight line basis over the period of the lease.
Notes to the Consolidated Financial Statements (continued)
Bahamas Petroleum Company plc Annual Report & Accounts 2010 42 3 Financial risk management 
3.1 Financial risk factors
The Group’s activities expose it to some financial risks: liquidity, market and credit risk. The Group’s overall risk 
management programme focuses on minimising potential adverse effects on the financial performance of the Group.  
The Company’s activities are also exposed to risks through its investments in subsidiaries and accordingly are exposed  
to similar financial and capital risks as the Group.
Risk management is carried out by the Finance Director under policies approved by the Board of Directors. The Finance 
Director identifies, evaluates and addresses financial risks in close co operation with the Group’s management. The Board 
provides written principles for overall risk management, as well as written policies covering specific areas, such as mitigating 
foreign exchange risks and investing excess liquidity.
(i) Liquidity risk
No profit to date
The Group has incurred losses since its inception and it is therefore not possible to evaluate its prospects based on past 
performance. Since the Group intends to continue investing in the exploration licences it currently holds an interest in, the 
Directors anticipate making further losses for the foreseeable future. There can be no certainty that the Group will achieve 
or sustain profitability or achieve or sustain positive cash flows from its activities.
Future funding requirements
The Group intends raising funding through the placing of ordinary shares and farm-outs of its licences. There is no 
certainty that the raising of sufficient funds through future farm-outs will be possible at all or on acceptable terms. This 
could substantially dilute the Group’s interest in the licences, however, given the size of the Group’s existing holding it 
would be expected, although there is no guarantee, that the Group will retain a significant equity interest in the licences.
Financial liabilities 
The Group’s financial liabilities comprise entirely of trade and other payables which all fall due within one year. The Group’s 
payment policy is to settle amounts in accordance with agreed terms which is typically 30 days.
(ii) Market risk
Foreign exchange risk
The Group operates internationally and therefore is exposed to foreign exchange risk arising from various currency 
exposures. The exposure to foreign exchange risk is managed by ensuring that the majority of the Group’s major assets, 
liabilities and expenditures are held or incurred in US Dollars. At 31 December 2010 the Group held $945,777 of cash  
in Sterling (2009: $276,063) and an immaterial amount of trade and other payables denominated in Sterling.
At 31 December 2010, if the US Dollar currency had weakened/strengthened by 10% against UK Sterling with all other 
variables held constant, post-tax losses for the year would have been reduced/increased by approximately $95,000 
(2009: reduced/increased by $28,000), mainly as a result of foreign exchange gains/losses on translation of UK Sterling-
denominated bank balances. Losses are more sensitive to movement in currency exchange rates in 2010 than 2009 due 
to larger amounts of UK Sterling currency held for corporate working capital purposes.
Interest rate risk
The Group’s exposure to interest rate risk relates to the Group’s cash deposits which are linked to short term deposit 
rates and therefore affected by changes in bank base rates. At 31 December 2010 and 2009 short term deposit rates 
were in the range of 0% to 1% and therefore the interest rate risk is not considered significant to the Group.
(iii) Credit risk
Credit risk is managed on a group basis. Credit risk arises from cash and cash equivalents and deposits with banks  
and financial institutions. For banks and financial institutions, only independently rated parties with a minimum rating  
of ‘A’ are accepted.
3.2 Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern  
in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital 
structure to support the Group’s business operations and maximise shareholder value.
The Group is exposed to macroeconomic risks including, but not limited to, the strength of capital markets, the oil price 
and the risk of joint venture or supplier default, all of which could adversely affect the availability of future financing. 
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
43 4 Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including 
expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under 
the circumstances.
4.1 Critical accounting estimates and assumptions 
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, 
seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material 
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(a) Going concern
These financial statements have been prepared on a going concern basis, which assumes that the Group will be able  
to meet its liabilities as and when they fall due for the foreseeable future.
The Directors have prepared cash flow forecasts that indicate that the Group will be able to meet its financial obligations 
through to the end of 2012 from its existing liquid cash resources and post year end placements of ordinary shares.
Additional cash resources may become available to the Group following the granting of three new exploration licences in 
The Bahamas resulting in the completion of the farm-in agreement with Statoil and receipt of consideration funds thereof.
However, the Group’s ability to meet its obligations beyond 2012 is dependent on either further fund raising, completion  
of the Statoil farm-in agreement or the agreement of further farm-in arrangements of the Group’s licences. 
(b) Carrying value of exploration expenditure
Expenditure of $5,024,331 relating to the cost of exploration licences, geological and geophysical consultancy and 
seismic data acquisition and interpretation has been carried forward on the balance sheet at 31 December 2010  
(31 December 2009: $4,063,824). 
The consultancy expenditure incurred related to the gathering of historical data and the commencement of interpretation 
of this data.
Ultimate recoupment of exploration and evaluation assets carried forward is dependent on successful development and 
commercial exploitation, or alternatively, sale of the respective areas.
(c) Prepayments
Prepayments comprise application fees paid to the government of The Bahamas for additional exploration licences, 
pending award. In the event that the Group’s applications are unsuccessful 50% of this amount is refundable to the 
Group.
No provision has been made in the accounts to write down the carrying value of these prepayments in the event that the 
applications are unsuccessful.
5 Finance income 
    2010 2009 
    Group Group
    $ $
Finance income – interest income on short-term bank deposits   – 4,026
  
Notes to the Consolidated Financial Statements (continued)
Bahamas Petroleum Company plc Annual Report & Accounts 2010 44 6 Employee benefit expense 
    2010 2009 
    Group Group
    $ $
Wages and salaries    1,816,403 915,932
Social security costs    93,415 915
Pension costs – defined contribution    6,714 7,209
Other staff costs    89,773 –
     2,006,305 924,056
  
Average number of employees    5 5
Split between:  
 Executive    2 3
 Non-executive    2 2
 Administrative    1 –
 Total    5 5
7 Other expenses 
    2010 2009 
    Group Group
    $ $
Travel and accommodation    627,396 303,097
Operating lease payments (note 19)    173,426 102,161
Premises relocation costs    64,377 47,281
Legal and professional    1,146,944 710,224
Auditor’s remuneration:  
– Current year audit of Parent Company and consolidated financial statements  60,000 67,577
– Prior year audit (over)/under provision    (14,417) 60,113
– Other services pursuant to legislation    – 56,925
– Taxation services    2,354 –
– Other services    20,535 –
Net foreign exchange loss/(gain)    112,161 (336,964)
Management and administration fees    385,515 143,959
Other    756,870 245,815
Total other expenses    3,335,161 1,400,188
  
8 Income tax 
Until 31 December 2008 the Company was resident in both the UK and the Falkland Islands for tax purposes. Following 
the reverse takeover on 1 September 2008 all UK based operations and activities have ceased and therefore the Company 
migrated its tax residency to Jersey, effective 31 December 2008. This migration was subject to HMRC approval and  
a bank guarantee of £75,000 was provided to HMRC during the year ended 31 December 2008 pending finalisation of any 
remaining tax liability. During the current year, a further £75,000 was placed into the bank guarantee at the request of the 
Supreme Court of the Falkland Islands as a condition of the completion of the Scheme of arrangement (note 21), bringing 
the total USD balance to $232,211 (2009: $119,555). The Directors are of the opinion that any final tax liability arising from 
the UK or the Falkland Islands will be £nil. 
The Company’s 100% directly held subsidiary, BPC Jersey Limited is treated as a zero rated company under the 
amended Income Tax (Jersey) Law 1961.
During the year, the Group underwent a Scheme of Arrangement which saw the Isle of Man subsidiary become the 
Group’s Parent Company, with the Group tax residency correspondingly being migrated to the Isle of Man. Companies 
incorporated and resident in the Isle of Man are subject to Isle of Man income tax at a rate of zero per cent. 
The Company’s 100% indirectly held subsidiary, BPC Perth Pty Ltd was dissolved in the year with no tax being payable. 
All other Group companies are within a tax free jurisdiction, that of the Commonwealth of The Bahamas. Under current 
Bahamian law, the Company is not required to pay taxes in The Bahamas on income or capital gains.
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
45 8 Income tax (continued)
The credit to income tax in the year results from the release of a provision of $61,787 for employee benefit taxes in the 
Falkland Islands from previous years following agreement of a final assessment of $nil with the tax office in the Falklands 
Islands.
9 Basic and diluted loss per share 
(a) Basic
Basic loss per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted 
average number of ordinary shares in issue during the year.
 
    2010 2009
    Group Group
Loss attributable to equity holders of the Company    $(5,318,458) $(2,425,421)
Weighted average number of ordinary shares in issue    876,109,553 789,639,838
Basic loss per share (US cents per share)    (0.61) (0.31)
  
(b) Diluted  
Diluted loss per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume 
conversion of all dilutive potential ordinary shares. The Company had one category of dilutive potential ordinary shares: 
share options. For these share options, a calculation is performed to determine the number of shares that could have 
been acquired at fair value (determined as the average annual market share price of the Company’s shares) based on  
the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as 
above is compared with the number of shares that would have been issued assuming the exercise of the share options. 
All outstanding share options were exercised in 2010. Subsequent to the year end the Company has issued share options 
to the Directors, employees and certain consultants (see note 22).
 
    2010 2009
    Group Group
Total share options in issue (see note 17)    – 7,896,398
  
The effect of the above share options at 31 December 2009 is anti-dilutive; as a result they have been omitted from the 
calculation of diluted loss per share.
10  Cash not available for use 
  
    2010 2009 
    Group Group
    $ $
Bank deposits    325,046 119,555
  
Bank deposits include amounts held by Barclays Bank Plc as security for a guarantee provided to HMRC. The guarantee 
was required to be in place prior to migrating the UK tax residency of BPC Limited (incorporated in the Falkland Islands) 
to Jersey in 2008 and was required to be increased by the Supreme Court of the Falkland Islands as a condition of the 
completion of the Scheme of Arrangement (note 21). These amounts are now due for release to the Company pending 
receipt of consent from HMRC.
Also included in bank deposits is the amount of £60,000 held as security for a company credit card facility.
Notes to the Consolidated Financial Statements (continued)
Bahamas Petroleum Company plc Annual Report & Accounts 2010 46 11 Property, plant and equipment
   Furniture, 
  Leasehold fittings and Motor
  improvements equipment vehicles Total 
Group  $ $ $ $
    
Year ended 31 December 2009    
Opening net book amount  37,761 79,516 – 117,277
Foreign currency exchange difference  – 2,542 – 2,542
Additions  – – – –
Disposals  – (9,057) – (9,057)
Depreciation charge  (34,145) (57,911) – (92,056)
Closing net book amount  3,616 15,090 – 18,706
    
At 31 December 2009    
Cost  102,434 146,364 – 248,798
Accumulated depreciation  (98,818) (131,274) – (230,092)
Net book amount  3,616 15,090 – 18,706
    
Year ended 31 December 2010    
Opening net book amount  3,616 15,090 – 18,706
Additions  29,010 108,985 71,857 209,852
Depreciation charge  (3,616) (27,978) (7,185) (38,779)
Closing net book amount  29,010 96,097 64,672 189,779
    
At 31 December 2010    
Cost  131,444 255,349 71,858 458,651
Accumulated depreciation  (102,434) (159,252) (7,186) (268,872)
Net book amount  29,010 96,097 64,672 189,779
    
12  Intangible assets 
    Geological,  
   Exploration and geophysical and  
   evaluation assets* technical analysis* Total
Group   $ $ $
Year ended 31 December 2009    
Opening net book amount   1,218,750 2,836,837 4,055,587
Additions   – 8,237 8,237
Closing net book amount   1,218,750 2,845,074 4,063,824
    
At 31 December 2009    
Net book amount   1,218,750 2,845,074 4,063,824
    
Year ended 31 December 2010    
Opening net book amount   1,218,750 2,845,074 4,063,824
Additions   575,000 385,507 960,507
Closing net book amount   1,793,750 3,230,581 5,024,331
    
At 31 December 2010    
Net book amount   1,793,750 3,230,581 5,024,331
    
*  Exploration and evaluation assets and geological, geophysical and technical analysis    
Ultimate recoupment of exploration and evaluation assets carried forward is dependent on successful development  
and commercial exploitation, or alternatively, sale of the respective areas (note 2.7). These assets are reviewed for 
impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.  
At present the Directors do not believe any such impairment indicators are present.
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
47 13  Cash and cash equivalents  
    2010 2009 
    Group Group
    $ $
Cash at bank and in hand    6,068,558 1,337,885
  
Cash at bank and in hand
The 2010 balance includes interest bearing accounts at rates between 0% and 1% (2009: 0% to 1%).
14  Other receivables
  
    2010 2009 
    Group Group
    $ $
Other receivables (note (a))    113,298 73,850
Prepayments (note (b))    782,948 395,827
     896,246 469,677
(a) Other receivables
These amounts include VAT recoverable and funds advanced to the resident management office in The Bahamas  
for forthcoming local expenditure. The funds are held on a trust account with First Caribbean Bank by the resident 
management office. The funds are generally utilised within three months and the receivable is non-interest bearing.
(b) Prepayments
Prepayments include $500,000 (2009: $300,000) in applications fees paid to the government of The Bahamas  
for additional exploration licences, pending award. In the event that the Group’s applications are unsuccessful  
50% of this amount is refundable to the Group.
15  Trade and other payables 
    2010 2009 
    Group Group
    $ $
Other payables and accruals    364,980 271,817
     364,980 271,817
  
16  Share capital and premium
      
     Share 
   Issue Ordinary premium Merger 
  Number of price shares reserve Reserve Total
Group  shares US$ US$ US$ US$ US$
      
At 1 Jan 2009 and 2010  789,639,838  28,764 73,634,186 – 73,662,950
       
16 March 2010 Placing 69,842,860 0.05 2,056 3,490,976 – 3,493,032
15 June 2010 Scheme of Arrangement – – (5,522) (77,125,162) 77,130,684 –
6 October 2010 Placing 120,000,000 0.07 3,811 7,462,963 – 7,466,774
11 October 2010 Options exercised 2,500,000 0.07 80 180,726 – 180,806
10 November 2010 Options exercised 2,500,000 0.07 80 183,213 – 183,293
23 November 2010 Options exercised 2,896,398 0.07 90 210,693 – 210,783
At 31 December 2010  987,379,096  29,359 8,037,595 77,130,684 85,197,638
       
On 16 March 2010 the Company issued 69,842,860 new ordinary shares in the then Parent Company BPC Limited, 
incorporated in the Falkland Islands, at 3.5 pence (5 cents).
On 15 June 2010, the Group underwent a Scheme of Arrangement which saw the shares in the then Parent Company 
BPC Limited replaced with shares in Bahamas Petroleum Company plc (then BPC plc) incorporated in the Isle of Man 
which became the new Parent Company of the Group (note 21).
Notes to the Consolidated Financial Statements (continued)
Bahamas Petroleum Company plc Annual Report & Accounts 2010 48 On 6 October 2010 the Company issued 120,000,000 new ordinary shares at 4.25 pence (7 cents) per share.
Share options totalling 7,896,398 were exercised during the year.
The total authorised number of ordinary shares at 31 December 2010 and 2009 was 5 billion shares with a par value  
of 0.002p per share.
All issued shares are fully paid.
Subsequent to the year end the Company announced the placement of 233,100,000 new ordinary shares at 18.75 pence 
per share, raising gross proceeds of £45.6 million in total. Of this placing, 110,000,000 ordinary shares were allotted  
on 17 March 2011 with the remaining 133,100,000 ordinary shares being allotted following shareholder approval at the 
Extraordinary General Meeting of the Members of the Company on 11 April 2011. On 12 April 2011 the Company issued 
18 million share options to Directors, staff and consultants (note 22).
17  Share-based payments
Share options are granted to Directors, selected employees and consultants to the Company. The exercise price of the 
granted options is equal to the fair value of the shares on the date of the grant. The options granted to the Company’s 
Nominated Advisor on 2 September 2008 are exercisable in whole or in part at any time during a period of three years 
from the grant date. These were fully exercised during 2010.
The Group had no legal or constructive obligation to repurchase or settle any options in cash. Movements in the number 
of share options outstanding during the year are as follows:
    
  31 December 2010  31 December 2009 
  12 months  12 months
 
  Average  Average  
  exercise price  exercise price 
  per share No. options per share No. options
At beginning of year/period  4.55p 7,896,398 4.55p 7,896,398
Exercised  4.55p (7,896,398) – –
At end of year/period  – – 4.55p 7,896,398
No share options were granted during the year. Subsequent to the year end the Company has issued share options to the 
Directors, employees and certain consultants (see note 22).
Expenses arising from share-based payments transactions
Total expenses arising from equity-settled share-based payment transactions during the year were as follows:
    2010 2009 
    Group Group
    $ $
Expense in relation to options issued to Nominated Advisor, included as part of legal  
and professional expense    78,305 47,222
     78,305 47,222
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
49 18  Cash used in operating activities
  
    2010 2009 
    Group Group
    $ $
Loss after income tax    (5,318,458) (2,425,421)
Adjustments for:  
– Depreciation    38,779 92,056
– Loss on disposal of property, plant and equipment    – 13,147
– Share-based payment (note 17)    78,305 47,222
– Finance income (note 5)    – (4,026)
– Foreign exchange loss/(gain) on operating activities (note 7)   112,161 (336,964)
– Tax credits    (61,787) –
Changes in working capital  
– Other receivables    (426,569) 37,716
– Trade and other payables    154,950 (246,826)
Cash used in operating activities    (5,422,619) (2,823,096)
  
19  Contingencies and commitments    
    
i) Contingencies    
The Group has no contingent liabilities as at 31 December 2010. 
    
ii) Expenditure commitments
As at 31 December 2010 and 2009, the Group has discharged all of its work obligations under the terms of the exploration 
licences and there is no requirement for the Group to commit to further exploration/evaluation activities in order to 
maintain the good standing of the licences.
On 30 March 2011 the company signed a Letter of Award with CGG Veritas to carry out the 3D seismic survey across the 
Group’s southern licence area.
iii) Annual rental commitments    
The Group is required under the exploration licences to remit annual rentals in advance to the government of The Bahamas 
in respect of the licenced areas. By letter dated 20 March 2008, the government of The Bahamas has approved a two 
year extension to the existing three year licence period which now expires on 26 April 2012. Although not specified, 
management has assumed that the annual rental for the licences during the two year extension period will be the same  
as the third year’s rental.
Rental payments on licence areas were resumed in the year due to the lifting of the Bahamian government requested halt 
on exploration activities.
    31 December 31 December 
    2010 2009 
    Group Group
    $ $
No later than 1 year    575,000 575,000
Later than 1 year and no later than 5 years    575,000 1,150,000
Later than 5 years    – –
     1,150,000 1,725,000
  
iv) Operating lease commitments  
The Group leases various office premises under non-cancellable operating lease agreements. The leases have varying 
terms and renewal rights.
Notes to the Consolidated Financial Statements (continued)
Bahamas Petroleum Company plc Annual Report & Accounts 2010 50 The future aggregate minimum lease payments under non-cancellable operating leases are as follows:
    31 December 31 December 
    2010 2009 
    Group Group
    $ $
No later than 1 year    86,200 8,000
Later than 1 year and no later than 5 years    – –
Later than 5 years    – –
     86,200 8,000
20 Related party transactions    
Key management personnel    
Details of key management personnel are as follows:
Alan Burns    Non-Executive Chairman
Paul Crevello    Director and Chief Executive Officer
Dursley Stott    Non-Executive Director
Michael Proffitt    Finance Director, Non-Executive 
Edward Shallcross    Non-Executive Director
    31 December 31 December 
    2010 2009 
    Group Group
Key Management Compensation    $ $
Alan Burns    783,558 132,634
Paul Crevello    802,618 350,000
Michael Proffitt    78,298 52,045
Dursley Stott    54,513 4,776
Mark Savage    – 12,632
Timothy Jones    – 20,847
Robert Carroll    – 13,703 
Salaries and other short term benefits    1,718,987 586,637
During the year, Alan Burns was reimbursed for the purchase by the Company of two vehicles with a total value of $70,140.
These vehicles have been provided to staff and their cost has been expensed in full in the current year.
During the year, administration services totalling $40,870 were procured from Albert Technologies Limited,  
a company owned by Alan Burns.
Mr M Proffitt and Mr A Burns are both Directors and shareholders of Renewable Energy Holdings Plc (REH). During the 
year, management and administration fees totalling $116,531 were paid to REH. 
During the year, accountancy and other financial consultancy services were procured from BDP Orbita Limited,  
a company in which Benjamin and Daniel Proffitt, relatives of Michael Proffitt, are Directors. Fees totalling $331,629  
were paid to BDP Orbita Limited for these services.
During the year, accountancy services were procured from Daniel Proffitt, a relative of Michael Proffitt, totalling $4,198.
Subsequent to the year end the Company has issued share options to the Directors, employees and certain consultants 
(see note 22).
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
51 21 Scheme of Arrangement   
On 15 June 2010 Bahamas Petroleum Company plc (formerly BPC plc) (“BPC plc”), a company incorporated in the  
Isle of Man, became the Parent Company of BPC (Falklands) Limited (formerly BPC Limited) pursuant to a Scheme of 
Arrangement approved by the Chief Justice of the Falkland Islands and the shareholders of BPC (Falklands) Limited,  
the then AIM listed holding company of the BPC Group (the “Scheme of Arrangement”). Pursuant to the Scheme of 
Arrangement, ordinary shares, each having a nominal value of £0.00002, of BPC Limited (“BPC Limited Ordinary Shares”) 
were exchanged, on a one for one basis, for ordinary shares, each having a nominal value of £0.00002, of BPC plc  
(“BPC plc Ordinary Shares”).
As a result of the Scheme of Arrangement, BPC (Falklands) Limited is now a wholly owned subsidiary of BPC plc.  
The BPC plc Ordinary Shares carry substantially the same rights as did the BPC Limited Ordinary Shares. The Scheme  
of Arrangement did not involve any cash payment for the BPC plc Ordinary Shares. Immediately after the Scheme  
of Arrangement became effective, BPC plc had the same Board of Directors, management and corporate governance 
arrangements as BPC Limited had immediately prior thereto. The consolidated assets and liabilities of BPC plc immediately 
after the effective time of the Scheme of Arrangement are the same as the consolidated assets and liabilities of BPC 
(Falklands) Limited immediately prior thereto.
BPC plc was incorporated on 25 August 2009. Prior to 15 June 2010 BPC plc was held in trust for the Group. The Group 
at the time maintained full control over the economic decisions of BPC plc.
All BPC Limited share options that were in existence immediately prior to the Scheme of Arrangement were exchanged  
on a one for one basis for share options in BPC plc with no change in terms or conditions.
On 29 December 2010, the Directors and shareholder of BPC (Falklands) Limited authorised a dividend in specie to be 
paid to the Parent Company, Bahamas Petroleum Company plc. As consideration for the dividend, BPC (Falklands) Limited 
transferred all of its net assets to Bahamas Petroleum Company plc, including its 100% holding in BPC Jersey Limited. 
22 Events after the balance sheet date    
On 17 January 2011 the Company announced the retirement of Alan Robert Burns as Chief Executive Officer of the  
Group and the appointment of Paul Daniel Crevello to this role. Mr Burns continues to serve the Group as Non-Executive 
Chairman.
On 3 February 2011 the Group completed the acquisition of 1,100 km of 2D seismic lines in its southern licence areas. 
Detailed analysis results are expected by the end of summer 2011.
On 16 March 2011 the Company announced the placement of 233,100,000 new ordinary shares at 18.75 pence per share, 
raising gross proceeds of £45.6 million in total. Of this placing, 110,000,000 ordinary shares were allotted on 17 March 
2011 with the remaining 133,100,000 ordinary shares being allotted following shareholder approval at the Extraordinary 
General Meeting of the Members of the Company on 11 April 2011. It is intended that the proceeds of this placement be 
used to advance the Group’s technical work program in its licence areas.
On 30 March 2011 the Company signed a Letter of Award with CGG Veritas to carry out the 3D seismic survey across the 
Group’s southern licence area.
On 12 April 2011 the Company issued 18 million share options to Directors, staff and consultants. The options have an 
expiry period of five years and are split into two tranches, 50% vesting on grant and 50% vesting when the share price  
of the Company reached 50 pence. Details of options granted to Directors are as below:
     Total number 
    Exercise of ordinary 
   Number of price per shares held
   options granted ordinary share under option
Paul Crevello   4,000,000 21.25p 4,000,000
Alan Burns   3,000,000 21.25p 3,000,000
Mike Proffitt   2,500,000 21.25p 2,500,000
Dursley Stott   1,500,000 21.25p 1,500,000
Edward Shallcross   1,500,000 21.25p 1,500,000
Total   12,500,000  12,500,000
Notes to the Consolidated Financial Statements (continued)
Bahamas Petroleum Company plc Annual Report & Accounts 2010 52 Independent auditor’s report to the members of Bahamas Petroleum Company plc
Report on the Financial Statements
We have audited the accompanying financial statements of Bahamas Petroleum Company plc (“the Parent Company”) 
which comprise the balance sheet as of 31 December 2010 and the statement of changes in equity and cash flow 
statement for the year then ended and a summary of significant accounting policies and other explanatory notes. 
Directors’ Responsibility for the Financial Statements
The Directors are responsible for the preparation and fair presentation of these financial statements in accordance with 
applicable Isle of Man law and International Financial Reporting Standards as adopted by the European Union, and for 
such internal control as the Directors determine is necessary to enable the preparation of financial statements that are 
free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility 
Our responsibility is to express an opinion on these financial statements based on our audit. This report, including the 
opinion, has been prepared for and only for the Company’s members as a body in accordance with Section 15 of the Isle 
of Man Companies Act 1982 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility 
for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where 
expressly agreed by our prior consent in writing.
We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply 
with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial 
statements are free from material misstatement. 
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial 
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material 
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor 
considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order  
to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion  
on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting 
policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall 
presentation of the financial statements. 
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 
Opinion
In our opinion:
The financial statements give a true and fair view of the financial position of the Parent Company as of 31 December 2010, and its cash flows for the year then ended in accordance with International Financial Reporting Standards as 
adopted by the European Union as applied in accordance with the provisions of the Isle of Man Companies Act 1982; 
and 
The Parent Company financial statements have been properly prepared in accordance with the Isle of Man Companies Acts 1931-2004.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Isle of Man Companies Acts 1931-2004 require  
us to report to you if, in our opinion:
Proper books of account have not been kept by the Parent Company or, proper returns adequate for our audit have  not been received from branches not visited by us; or
The Parent Company’s balance sheet is not in agreement with the books of account and returns; or We have not received all the information and explanations necessary for the purposes of our audit; and Certain disclosures of Directors’ loans and remuneration specified by law have not been complied with. PricewaterhouseCoopers LLC
Chartered Accountants
Douglas, Isle of Man
27 April 2011
Parent Company Auditor’s Report
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
53      2010 
     Company
    Note $
ASSETS    
Non-current assets    
Cash not available for use    11 325,046
Property, plant and equipment    5 70,858
Investments in subsidiaries    6 29,560,456
      29,956,360
Current assets    
Cash and cash equivalents    12 6,068,558
Other receivables    4 1,271,559
      7,340,117
    
Total assets     37,296,477
    
LIABILITIES
    
Current liabilities    
Trade and other payables     281,846
      281,846
    
Total liabilities     281,846
    
EQUITY    
Ordinary shares    7 29,359
Share premium reserve    7 8,037,595
Other reserves    7 29,535,159
Share-based payments reserve    8 55,622
Retained earnings    9 (643,104)
Total equity     37,014,631
    
Total equity and liabilities     37,296,477
The financial statements on pages 54 to 61 were approved and authorised for issue by the Board of Directors on  
27 April 2011 and signed on its behalf by:
Paul Crevello   Michael Proffitt
Director    Finance Director, Non-Executive
The accompanying notes form an integral part of these financial statements.
Parent Company Balance Sheet 
As at 31 December 2010
Bahamas Petroleum Company plc Annual Report & Accounts 2010 54       Share 
   Share Share Merger based Retained Total 
   capital premium reserve payments earnings equity
  Note $ $ $ $ $ $
Comprehensive income:       
Total comprehensive income for the period 3 – – – – (643,104) (643,104)
Transactions with owners:
Issue of ordinary shares  7 29,359 8,037,595 29,535,159 – – 37,602,113
Share options – value of service   – – – 55,622 – 55,622
Balance at 31 December 2010  29,359 8,037,595 29,535,159 55,622 (643,104) 37,014,631
       
The accompanying notes form part of these financial statements.
Parent Company Statement of Changes in Equity
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
55      25 August 2009 to 
     31 December 2010 
     Company
    Note $
Cash flows from operating activities   
Payments to suppliers and employees     (3,922,435)
Net cash used in operating activities    10 (3,922,435)
   
Cash flows from investing activities   
Purchase of property, plant and equipment     (77,111)
Advances to group companies     (1,091,374)
Net cash used in investing activities     (1,168,485)
   
Cash flows from financing activities   
Proceeds from issuance of ordinary shares     8,041,657
Advances received from group companies     3,324,809
Increase in restricted cash     (206,988)
Net cash flows from financing activities     11,159,478
   
Net increase in cash and cash equivalents     6,068,558
   
Cash and cash equivalents at the beginning of the period    – 
   
Cash and cash equivalents at end of period     6,068,558
The accompanying notes form part of these financial statements.   
   
   
Parent Company Cash Flow Statement
Bahamas Petroleum Company plc Annual Report & Accounts 2010 56 1 General information 
The separate financial statements of Bahamas Petroleum Company plc (the ‘Company’) are presented as required by the 
Isle of Man Companies Acts 1931 to 2004.
The accounting reference date of the Company is 31 December. As these financial statements are the first to be prepared 
by the Company following its incorporation on 25 August 2009, they have been prepared for a period of 16 months.
The names of the Directors in office at any time during or since the end of the year are:
Alan Burns Non-Executive Chairman (appointed 25 August 2009)
Paul Crevello Chief Executive Officer (appointed 30 November 2009)
Michael Proffitt Finance Director, Non-Executive (appointed 25 August 2009)
Dursley Stott Non-Executive Director (appointed 23 October 2009)
Edward Shallcross Non-Executive Director (appointed 1 February 2011)
2 Accounting policies
2.1 Basis of preparation
The accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European 
Union (IFRS) and have been prepared under the historical cost convention.
The Company’s accounting policies are in line with those of the Group, as detailed in note 2 of the consolidated financial 
statements.
Going concern
These financial statements have been prepared on a going concern basis, which assumes that the Company will be able 
to meet its liabilities as and when they fall due for the foreseeable future.
The Directors have prepared cash flow forecasts that indicate that the Company will be able to meet its financial obligations 
through to the end of 2012 from its existing liquid cash resources and post year end placements of ordinary shares.
Additional cash resources may become available to the Company following the granting of three new exploration licences  
in the Bahamas resulting in the completion of the farm in agreement with Statoil and receipt of consideration funds thereof.
However, the Company’s ability to meet its obligations beyond 2012 is dependent on either further fund raising, 
completion of the Statoil farm in agreement or the agreement of further farm in arrangements of the Group’s licences.
3 Loss attributable to members of the Parent Company
The loss dealt with in the financial statements of the Parent Company for the 16 months ended 31 December 2010  
is $643,104. As permitted by part 1 section 3(5) of the Isle of Man Companies Act 1982, the Company has elected not  
to present its own statement of comprehensive income for the period.
Notes to the Parent Company  
Financial Statements
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
57 4 Other receivables
     2010 
     Company
     $
Prepayments     180,185
Amount owing by group undertakings     1,091,374
      1,271,559
  
5 Property, plant and equipment 
   Leasehold Furniture, fittings  
   improvements and equipment Total
Company   $ $ $
Net book value as at 25 August 2009   – – –
Additions   29,010 48,101 77,111
Depreciation charge   – (6,253) (6,253)
Net book value as at 31 December 2010   29,010 41,848 70,858
    
As at 31 December 2010    
Cost   29,010 48,101 77,111
Accumulated depreciation   – (6,253) (6,253)
Net book value   29,010 41,848 70,858
    
6 Investments in subsidiaries
     2010 
     Company
     $
Investment in BPC (Falklands) Limited  
At beginning of the period     –
Additions     29,560,456
Dividend in specie     (29,560,456)
At 31 December 2010     –
  
Investment in BPC Jersey Limited  
At beginning of the period     –
Dividend in specie     29,560,456
At 31 December 2010     29,560,456
  
On 15 June 2010 the Company acquired 100% of shares in issue in BPC (Falklands) Limited (formerly BPC Limited)  
through a Scheme of Arrangement resulting in the issue of 859,382,698 new ordinary shares to the existing shareholders 
of BPC (Falklands) Limited. The cost of investment in BPC (Falklands) Limited has been recorded as the value of the net 
assets of BPC (Falklands) Limited immediately prior to the Scheme of Arrangement of $29,560,456 which comprised  
of its investment in BPC Jersey Limited. The Scheme of Arrangement is explained in greater detail in note 21 of the 
consolidated financial statements.
On 29 December 2010, BPC (Falklands) Limited granted its investment in BPC Jersey Limited to the Company by way  
of a dividend in specie. This has had the effect of reducing the value of the Company’s investment in BPC (Falklands) 
Limited to nil whilst giving rise to the investment in BPC Jersey Limited of $29,560,456.
Notes to the Parent Company  
Financial Statements (continued)
Bahamas Petroleum Company plc Annual Report & Accounts 2010 58 7 Share capital and premium
Prior to 12 April 2010 the authorised share capital of the Company consisted of 2,000 ordinary shares of £1 each.
On 12 April 2010 the authorised share capital of the Company was increased to 5,000,000,000 ordinary shares of  
0.002p each.
Allotted, called up and fully paid shares are detailed below:
    Share   
  Number Share premium Other
  of shares capital reserve reserve Total
Incorporation – 25 August 2009 2 $4 $nil $nil $4
12 April 2010 Reclassification 100,000 – – – –
15 June 2010 Scheme of Arrangement 859,382,698 $25,298 – $29,535,159 $29,560,457
6 October 2010 Placement 120,000,000 $3,811 $7,462,963 – $7,466,774
11 October 2010 Options exercised 2,500,000 $80 $180,726 – $180,806
10 November 2010 Options exercised 2,500,000 $80 $183,213 – $183,293
23 November 2010 Options exercised 2,896,398 $90 $210,693 – $210,783
At 31 December 2010  987,379,096 $29,359 $8,037,595 $29,535,159 $37,602,113
       
Subsequent to the year end the Company announced the placement of 233,100,000 new ordinary shares at 18.75 pence 
per share, raising gross proceeds of £45.6 million in total. Of this placing, 110,000,000 ordinary shares were allotted on  
17 March 2011 with the remaining 133,100,000 ordinary shares being allotted following shareholder approval at the 
Extraordinary General Meeting of the Members of the Company on 11 April 2011 (note 14).
8 Share-based payments
On 15 June 2010 the Company underwent a Scheme of Arrangement which saw 7,896,398 share options in BPC 
(Falklands) Limited cancelled and replaced with 7,896,398 share options in the Company. The new share options were 
granted under identical terms to the pre-existing share options in BPC (Falklands) Limited with expiry on 2 September 
2011. IFRS 2 charges relating to these share options have been made to the Company’s reserves since the above date.
During the period, all share options outstanding were exercised. No share options were granted during the period.
Subsequent to the year end the Company has issued share options to the Directors, employees and certain consultants 
(see note 14). 
  
9 Retained earnings
     16 months ended 
     31 December 
     2010 
     Company
     $
Balance at beginning of period     –
Loss for the period     (643,104)
Balance at end of period     (643,104)
  
10 Cash used in operating activities
  
     16 months ended 
     31 December 
     2009 
     Company
     $
Loss before income tax     (643,104)
Adjustments for:  
– Depreciation and amortisation     6,253
– Intercompany payables written back     (3,442,867)
– Share-based payment     55,622
– Other receivables     (180,185)
– Trade and other payables     281,846
Cash used in operating activities     (3,922,435)
  
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
59 11 Cash not available for use 
 
     2010 
     Company
     $
Bank deposits     325,046
  
Bank deposits include amounts held by Barclays Bank Plc as security for a guarantee provided to HMRC. The guarantee 
was required to be in place prior to migrating the UK tax residency of the company’s subsidiary, BPC (Falklands) Limited 
(incorporated in the Falkland Islands) to Jersey in 2008 and was required to be increased by the Supreme Court of the 
Falkland Islands as a condition of the completion of the Scheme of Arrangement. These amounts are now due for release 
to the Company pending receipt of consent from HMRC.
Also included in bank deposits is the amount of £60,000 held as security for a company credit card facility.
12 Cash and cash equivalents
  
     2010 
     Company
     $
Cash at bank and in hand     6,068,558
Cash at bank and in hand
The 2010 balance includes interest bearing accounts at rates between 0% and 1%. 
13 Related party transactions
Key management personnel
Details of key management personnel are as follows: 
Alan Burns Non-Executive Chairman
Paul Crevello Director and Chief Executive Officer
Dursley Stott Non-Executive Director
Michael Proffitt Finance Director, Non-Executive 
Edward Shallcross Non-Executive Director
Key management compensation 
     31 December 
     2010 
     Company
     $
Salaries and other short term benefits     916,369
During the period, Alan Burns was reimbursed for the purchase of two vehicles for staff use with a total value of $70,140.
During the year, administration services totalling $40,870 were procured from Albert Technologies Limited, a company 
owned by Alan Burns.
Mr M Proffitt and Mr A Burns are both Directors and shareholders of Renewable Energy Holdings Plc (REH). During the 
year, management and administration fees totalling $116,531were paid to REH. 
During the year, accountancy and other financial consultancy services were procured from BDP Orbita Limited,  
a company in which Benjamin and Daniel Proffitt, relatives of Michael Proffitt, are Directors. Fees totalling $331,629  
were paid to BDP Orbita Limited for these services.
During the year, accountancy services were procured from Daniel Proffitt, a relative of Michael Proffitt, totalling $4,198. 
Subsequent to the year end the Company has issued share options to the Directors, employees and certain consultants 
(see note 14).
Notes to the Parent Company  
Financial Statements (continued)
Bahamas Petroleum Company plc Annual Report & Accounts 2010 60 14 Events after the balance sheet date 
On 17 January 2011 the Company announced the retirement of Alan Robert Burns as Chief Executive Officer of the Group 
and the appointment of Paul Daniel Crevello to this role. Mr Burns continues to serve the Group as Non-Executive Chairman.
On 3 February 2011 the Company’s Bahamian subsidiary completed the acquisition of 1,100 km of 2D seismic lines  
in its southern licence areas. Detailed analysis results are expected by the end of summer 2011.
On 16 March 2011 the Company announced the placement of 233,100,000 new ordinary shares at 18.75 pence per share, 
raising gross proceeds of £45.6 million in total. Of this placing, 110,000,000 ordinary shares were allotted on 17 March 
2011 with the remaining 133,100,000 ordinary shares being allotted following shareholder approval at the Extraordinary 
General Meeting of the Members of the Company on 11 April 2011. It is intended that the proceeds of this placement be 
used to advance the Group’s technical work program in its licence areas.
On 30 March 2011 the Company’s Bahamian subsidiary signed a Letter of Award with CGG Veritas to carry out the  
3D seismic survey across the Group’s southern licence area.
On 12 April 2011 the Company issued 18 million share options to Directors, staff and consultants. The options have  
an expiry period of five years and are split into two tranches, 50% vesting on grant and 50% vesting when the share  
price of the Company reaches 50 pence. Details of options granted to Directors are as follows:
     Total number  
    Exercise of ordinary
   Number of price per shares held 
   options granted ordinary share under option
Paul Crevello   4,000,000 21.25p 4,000,000
Alan Burns   3,000,000 21.25p 3,000,000
Mike Proffitt   2,500,000 21.25p 2,500,000
Dursley Stott   1,500,000 21.25p 1,500,000
Edward Shallcross   1,500,000 21.25p 1,500,000
Total   12,500,000  12,500,000
 
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
61 BN Billion
boe Barrels of oil equivalent
CPR Competent Person Report
MN Million
NOCs National Oil Companies
PSDM Pre-stack Depth Migration
PSTM Pre-stack Time Migration
Glossary of Terms
Bahamas Petroleum Company plc Annual Report & Accounts 2010 62 Notes
Bahamas Petroleum Company plc Annual Report & Accounts 2010
Overview Business Review Corporate  
Governance
Accounts
63 Notes
Bahamas Petroleum Company plc Annual Report & Accounts 2010 64  Registered Ofﬁce:
Bahamas Petroleum Company plc
IOMA House
Hope Street
Douglas
Isle of Man
IMI 1AP 
Website: www.bpcplc.com
Email: info@bpcplc.com
Bahamas Registered Ofﬁce:
BPC Limited
The Deanery
N
o
28 Cumberland Street
P .O. Box N-1991
Nassau, Bahamas