Bahamas Petroleum Company announced it had secured the license extension of its four southern licences in the Bahamas, sending shares higher on Friday.

The oil and gas exploration firm confirmed in an update that it had received formal notification of the extension from the Government of the Bahamas.

The second period the exploration license will be valid until 31 December 2020.

Simon Potter, Chief Executive Officer of Bahamas Petroleum Company, said:

“The confirmation from the Government of The Bahamas that the current term of our four southern licences extends to 31 December 2020 provides the Company with a certainty of tenure over the Company’s licences, replacing any perceived “above ground” issues with complete clarity in fact and law.

He added: “This position has been arrived at following extensive government consultation and whilst this has taken the Company a while to establish, there is now a very clear two-year window to advance plans for and to drill an exploratory well providing certainty to potential partners as we move forward in our farm-out discussions. Today’s news will add considerable impetus to this process.”

The company added that alongside advisers, it continues the process to locate a farm-in partner for the initial exploration well.

Shares (LON:BPC) in the firm are currently +14.77% as of 11:07AM (GMT).