LONDON (ShareCast) - (Sharecast News) - Oil and gas exploration firm Bahamas Petroleum's shares more than doubled in price on Thursday as the company announced a confidentiality and exclusivity agreement with a major international oil company.
The AIM-traded company will receive a non-refundable payment of $0.75m for an initial three months of exclusivity, with the option for a further $0.25m per extra month of continued exclusivity between the two parties.

Simon Potter, chief executive of Bahamas Petroleum Company, said: "The decision to enter into an exclusivity agreement with a reputable international industry operator is a significant step in our ongoing process to secure a partner for our highly prospective assets in The Bahamas. We look forward to working closely with the counterparty over the coming months, and we will update the market of any material developments as and when appropriate."

The company holds 100% ownership of five offshore exploration licences in The Bahamas and is currently in the middle of the application process for another three.

The agreement comes after Bahamas Petroleum's recent work to evaluate its licences with a number of major companies with a view to concluding a mutually beneficial commercial transaction.

Management has, however, stated that despite the signing of the new agreement "no assurance can be provided that a commercial transaction will ultimately be concluded with the Counterparty."

As of 0932 BST, Bahamas Petroleum's shares were up 148.57% at 2.61p.

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