QUESTIONS TO THE PRIME MINISTER >>>> WILL THE BAHAMIAN PEOPLE HAVE A SAY IN THE OWNERSHIP OF THE COUNTRY’S VAST OIL RESERVES DISCOVERED IN 1986?

NASSAU, New Providence – Bahamas Petroleum is pleased to announce the following changes to the board of directors of the Company (“the Board”) with immediate effect. Former Bahamian State Minister of Finance official James Smith will join the Board as non-executive Deputy Chairman and William (Bill) Schrader will join as non-executive Chairman.

James Smith is widely acknowledged as a leading expert on monetary policy. He is perhaps best known in The Bahamas as a former senator and government Minister of State in the Ministry of Finance. He served for a decade as the governor of the Central Bank of The Bahamas; as ambassador for Trade in the Office of the Prime Minister; and as Chairman of the Bahamas Maritime Authority, The Paradise Island Bridge Company and The Bahamas Development Bank. He has also held a number of board positions at both private and public companies including the Bahamas Stock Exchange. As a much respected member of the greater Bahamas’ community, James was often the choice of governments and businesses to lead numerous Bahamian delegations to more than 24 countries for investment promotion and trade missions.

The new Board Chairman Bill Schrader has over 30 years’ experience in the oil and gas industry, having served as Chief Executive Officer of several country operations at BP plc, as the President of the Azerbaijan International Operating Company and as the Chief Operating Officer of TNK-BP. Bill is characterised as a strong leader by his peers with a proven ability to manage complex operating environments. The Board changes come at a time when the Company is seeing increased activity in its data room as part of ongoing farm-out discussions together with positive developments in oil drilling legislation, with petroleum exploration regulations reported by the Environment and Housing Minister as having reached the Cabinet for consideration. This, in conjunction with falling rig rates and thus drilling costs, the Government’s recent mandate to proceed with exploration drilling and the term extension for the five licences held by the Company, demonstrates positive momentum on the operational and regulatory timelines.

Simon Potter, Chief Executive Officer, commented: “We are pleased to welcome both Bill and James to the Board at such a crucial stage in the Company’s progression towards a potential farm-out and subsequent exploration drilling.

“James will bring a wealth of knowledge and experience on operating effective and efficient businesses, as well as a valued familiarity with the region in which we operate. As a native Bahamian, he will be able to impart an understanding of the vision Bahamians have for their economy over the long-term, of which the Company hopes to be significant and valuable part.

“As chairman, Bill will bring not only years of direct industry experience from some of the most respected companies in the business, but also the drive to see Bahamas Petroleum through to the next stage in its development.

“Together, the Board shares a positive outlook on the Company’s future prospects and we look forward to concluding a farmout and proceeding towards our first exploration well consistent with the obligations of our government licence.”