Bahamas Petroleum Company (BPC) is set to merge with fellow London-listed junior Columbus Energy Resources, aiming to transform the combined company from single-country focus into an "Atlantic margin-focused, full-cycle exploration and production company".

BPC and Columbus reached an agreement on the terms of a recommended all-share merger by way of a share for share exchange offer to be made by BPC for Columbus.

The merger values Columbus at approximately £25.1 million (US$30 million).

The deal will transform BPC from a company holding assets offshore The Bahamas and expand its portfolio to include onshore assets in Trinidad & Tobago and Suriname.