Newswires http://www.proactiveinvestors.co.uk Proactiveinvestors Newswires RSS feed en Sat, 29 Apr 2017 10:21:46 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) BowLeven's chairman Billy Allan walks the plank http://www.proactiveinvestors.co.uk/companies/news/175687/bowleven-s-chairman-billy-allan-walks-the-plank-175687.html And then there was one … Billy Allan, non-executive chairman of BowLeven PLC (LON:BLVN), has walked the plank after last week’s board room carnage.

After shareholders voted to oust chief executive Kevin Hart, finance director Kerry Crawford, and three non-executive directors, only Allan and chief operating officer David Clarkson remained from the “old” BowLeven board.

Now only Clarkson remains, as Allan has picked up his ball and is taking it home.

Clarkson will have Christopher Ashworth and Eli Chahin for company in the board room; both were nominees of activist shareholder Crown Ocean Capital, which called the meeting at which the directors were pitched overboard.

Ashworth is taking over as chairman with immediate effect, and presumably will oversee the previously announced strategic review.

The board – what’s left of it - confirmed that the employment contracts of both former executive directors Kevin Hart and Kerry Crawford have been terminated with effect from 31 March 2017, and both are no longer involved in the running of the company.

“Given the broader reconstitution of the board following recent shareholder activism, Mr Allan’s position had not appeared particularly tenable to us, and we are therefore unsurprised by today’s news,” said Shore Capital, which rates BowLeven’s shares a ‘hold’.

Shares in BowLeven were up 4.1% at 36.19p.

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Thu, 30 Mar 2017 11:20:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/175687/bowleven-s-chairman-billy-allan-walks-the-plank-175687.html
Bowleven war of words continues http://www.proactiveinvestors.co.uk/companies/news/175440/bowleven-war-of-words-continues-175440.html Beleaguered oil explorer Bowleven PLC (LON:BLVN) said it is considering all options – including those put forward by an activist shareholder - as part of its strategic review.

The update came in the form of a response to a series of assertions and requests made by Crown Ocean Capital P1 Ltd on Friday (COC).

Bowleven said Monday: “As previously stated, the strategic review will consider all options available to the company, including transforming Bowleven into a holding company, as proposed by COC, alongside other matters already being progressed and negotiated by the Board prior to the GM.

“The strategic review is being undertaken in the interest of maximising value for shareholders.”

Crown Ocean, which it holds a 23% stake in Bowleven, believes the company should cease work on Bomono gas permit in Cameroon to focus on Etinde, in the shallow waters off the coast of the country.

However Bowleven has inked a deal with Victoria Oil & Gas (LON:VOG) to develop Bomono.

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Mon, 27 Mar 2017 08:25:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/175440/bowleven-war-of-words-continues-175440.html
Barclays downgrades Bowleven after activist-led boardroom cull http://www.proactiveinvestors.co.uk/companies/news/174905/barclays-downgrades-bowleven-after-activist-led-boardroom-cull-174905.html Bowleven Plc’s (LON:BLVN) new taskmasters will have a tough job on their hands, according to analysts at Barclays, who reckon the ‘simple strategy’ put forward by activist shareholder Crown Ocean Capital is easier said than done.

On Wednesday, it was confirmed that most of the Bowleven board had been sacked – after Crown Ocean‘s proposals garnered enough support at a general meeting of shareholders – leaving just chairman Billy Allan and chief operating officer David Clarkson in place.

Barclay’s today downgrades Bowleven to ‘underweight’ whilst noting that the shares now trade close to its new target price of 34p.

“The shareholder vote to remove CEO Kevin Hart and four other directors comes following the proposal from an activist investor of a simple strategy: minimise the cash burn while maximising the realised value of the company's existing assets, returning excess cash to shareholders,” Barclays analyst James Hosie said in a note.

“However, if delivering such a strategy was straightforward (and value-accretive) the evidence would be a long list of small cap E&Ps that efficiently monetised success and returned the cash to investors.”

“The reality is that a clean exit at a full price is rare, while scarce equity capital will continue to favour larger, diversified and self-funding businesses.”

Hosie says the company’s flagship Etinde project may have considerable upside potential, nonetheless, he reckons it will be challenging for Bowleven (as a minority partner in the project) to realise significant value from the asset quickly.

The analyst also cautions against any plans to strip cash from the group.

“The intuitive appeal of returning a large portion of the company's $95m cash balance is understandable, but can only enhance the longer-term outlook for shareholders if it comes with the monetisation of Etinde requiring limited further investment by Bowleven.”

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Thu, 16 Mar 2017 08:14:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/174905/barclays-downgrades-bowleven-after-activist-led-boardroom-cull-174905.html
Most of Bowleven board ousted as investors back call for change http://www.proactiveinvestors.co.uk/companies/news/174825/most-of-bowleven-board-ousted-as-investors-back-call-for-change-174825.html Africa-focused oil explorer Bowleven PLC (LON:BLVN) has seen almost all of the board depart after shareholders backed a rebel investor’s call for change.

Kevin Hart, chief executive, Kerry Crawford, finance director, and three non-executives John Martin, Tim Sullivan and Philip Tracy have all ceased to be directors following the shareholder vote.

Only chairman Billy Allan and chief operating officer David Clarkson are staying with the oil and gas company.

Monaco-based investment fund Crown Ocean Capital called the meeting claiming the company had badly managed its African oil assets. A string of disappointments has seen the shares lose 90% of their value over the past five years.

Two of COC's nominees, Christopher Ashworth and Eli Chahin, were also appointed as directors.

Bowleven’s statement pointed out that without COC’s 22% stake all of the resolutions would have been defeated by a ‘significant margin‘, while major institutional investors also all voted against bar one exception.

Earlier this month, Bowleven PLC (LON:BLVN) struck a deal with  Victoria Oil & Gas plc (LON:VOG)  that will see VOG's lcoal subsidiary take an 80% stake in the Bomono production sharing contract (PSC), with Bowleven keeping the remainder and continuing as operator.

Gas from Bomono will be sold to VOG minus a tolling fee for use of the pipeline. COC described the deal asmaking no sense for Bowleven shareholders.

Shares dropped 5% to 32.6p.

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Wed, 15 Mar 2017 09:09:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/174825/most-of-bowleven-board-ousted-as-investors-back-call-for-change-174825.html
BowLeven issues tit-for-tat response to Crown Ocean http://www.proactiveinvestors.co.uk/companies/news/173309/bowleven-issues-tit-for-tat-response-to-crown-ocean-173309.html The gloves are clearly off in the increasingly public ruck between Africa-focused oil and gas outfit Bowleven PLC (LON:BLVN) and activist shareholder Crown Ocean Capital.

Yesterday, private investment company Crown Ocean Capital (COC), which owns 16.2% of BowLeven, published an open letter to the the oil company's shareholders ahead of the general meeting on 14 March, in which COC has proposed two new, fully independent directors and a reduced board size of three directors.

BowLeven has responded to counter what it claims are ten significant errors in the open letter.

The oil company has taken issue with COC's assertion that the board's remuneration over a ten year period was US$44mln; BowLeven said the correct figure is US$33mln.

BowLeven's directors are also opposed to reducing the size of the board. The current board maintains that reducing the number of directors to just three, as per COC's proposals, would leave the board wholly reliant on existing director David Clarkson for relevant skills in terms of oil & gas industry and the continuity of the company's relationships with its partners and Cameroon authorities.

COC had claimed never to have proposed backing a management buy-out (MBO) of the company; BowLeven claims its management were approached by COC in 2016 with a view “to seeking their support for an MBO at a level equivalent to the cash balance of the company”.

Many of the other claims addressed by BowLeven encompass esoteric details relating to the company's activities – or lack of them – in Cameroon.

Suffice to say, the seven members of the board of BowLeven continue to exhort shareholders to vote against all the resolutions at the general meeting.

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Fri, 17 Feb 2017 07:38:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/173309/bowleven-issues-tit-for-tat-response-to-crown-ocean-173309.html
Bowleven tells investors to say no to activist shareholder http://www.proactiveinvestors.co.uk/companies/news/172848/bowleven-tells-investors-to-say-no-to-activist-shareholder-172848.html Bowleven Plc (LON:BLVN) told investors to reject the proposals made by activist shareholder Crown Ocean Capital (COC).

Monaco-based  COC requisitioned an EGM last month and Bowleven notes that the investor has been buying more shares in the company - a separate regulatory statement shows it now owns 15.56%.

In January, COC proposed to sack the board, cut spending on admin, cease spending on the Bomono project and return excess cash holdings to shareholders. It claims that its plan creates an alignment of stakeholders in the Etinde project and identifies a route to value maximisation from Etinde over time.

COC intends to take control of the company without paying fair value, Bowleven says.

 

 

The London-listed oil and gas company also said that COC had “no credible strategy” to maximise value from key assets Etinde and Bomono.

It further claimed that COC wants to convert Bowleven into a holding company by stripping cash from the balance sheet and it said that Bowleven would be left in a precarious position, unable to fund investment needed to realise value from its assets.

Bowleven also stated that COC has shown “utter inconsistency” during its involvement with the company – starting as an advocate of a management buy-out (at too low a price for directors to recommend), then proposing to appoint new additional directors, and latterly the proposal to remove the Bowleven board.

Billy Allan, Bowleven chairman, said: “Ahead of our formal response, we wish to give timely advice to shareholders that COC's proposal has absolutely no merit.

“It is self-evidently, and solely, a means to turn Bowleven into a cash dispenser for themselves, by taking control of the board.

“By contrast the company is progressing exciting plans at Etinde and Bomono that have the potential to deliver material upside.

“We see a clear choice for shareholders between losing control of the company, or retaining substantial upside in an E&P company at a favourable point in the market cycle."

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Wed, 08 Feb 2017 08:37:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/172848/bowleven-tells-investors-to-say-no-to-activist-shareholder-172848.html
Bowleven well test supports gas-to-power plans http://www.proactiveinvestors.co.uk/companies/news/121100/bowleven-well-test-supports-gas-to-power-plans-121100.html Bowleven (LON:BLVN) chief Kevin Hart declared himself “pleased” with the results of extended well testing on the Bomono Permit, onshore Cameroon.

The programme is now complete and early indications are the Moambe and Zingana wells produced enough gas to support the company’s initial plans for output of 5-6mln standard cubic feet a day.

This would then feed into a power generation plan currently being formulated in partnership with private equity firm Actis, which owns Eneo, the state generator.

Bomono is right next to Douala, Cameroon’s second city and the country’s industrial hub.

Those who follow the sector closely will know the pathfinder company in Cameroon gas-to-power is London-listed Victoria Oil & Gas (LON:VOG), which has created its own network in Douala.

Bowleven CEO Hart in a recent interview with Proactive said he has been in contact with Kevin Foo, the VOG boss, for advice and market intelligence.

And he isn’t ruling out some sort of collaboration when Bowleven is able to establish the potential of Bomono, which covers an area of 2,328 square-kilometres.

Of today’s update, Hart said: "We are pleased with the results of the extended flow testing programme at Bomono and are now looking forward to advancing gas sales negotiations and development planning."

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Fri, 08 Jan 2016 07:49:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/121100/bowleven-well-test-supports-gas-to-power-plans-121100.html
Bowleven moves to extended testing at Moambe well http://www.proactiveinvestors.co.uk/companies/news/119693/bowleven-moves-to-extended-testing-at-moambe-well-119693.html Bowleven (LON:BLVN) shares edged higher on Wednesday after it updated on its ongoing well testing programme for the Bomono project, onshore Cameroon.

The Moambe well, on the Bomono permit, has to date flowed at a maximum stabilised rate of 7.3mln cubic feet of gas per day (mmscfd), through a 48/64 choke with a flowing well head pressure of 664 psig.

There have been no signs of depletion during this initial test period, the company added.

Bowleven told investors that, due to the success to date, the programme has now moved into the planned extended well test period. This phase aims to confirm the field’s sustainable deliverability for a gas-to-power development.

Based on initial indications the company believes the well would be capable of delivering around 4 to 5 mmscfd.

The company added that it continues to work on plans for extended well testing of the Zingana well.

Kevin Hart, Cameroon chief executive, said: "We are pleased with the positive initial flow test results on Moambe which give us increased confidence in the commercial viability of future development plans at Bomono.

“We look forward to the Zingana test augmenting the results at Moambe and to progressing gas sales negotiations."

In London, Bowleven shares were up just over 1% changing hands at 24.25p each.

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Wed, 25 Nov 2015 10:41:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/119693/bowleven-moves-to-extended-testing-at-moambe-well-119693.html
Bowleven sitting on US$145mln in cash http://www.proactiveinvestors.co.uk/companies/news/117292/bowleven-sitting-on-us145mln-in-cash-117292.html Prelims from Bowleven (LON:BLVN) reveal it is in a healthy position for a junior oiler as it is sitting on US$145mln of cash.

The source of the company’s riches is a US$250mln deal struck with Russia’s LUKOIL and privately-owned NewAge, which now each own 30% of the Etinde Permit, offshore Cameroon.

Bowleven, which has been left with 20% (the remainder is owned by the state oil firm), is now carried on a two well programme next year.

That carry is estimated to worth US$40mln, while Bowleven will receive a further U$15mln on completion of appraisal drilling and US$25mln once the final investment decision is made on the project.

Etinde lies in shallow waters off the coast of Cameroon and is host to a number of discoveries including oil, condensate and gas.

The P50 contingent resources is 58mln barrels of oil equivalent.

However, there is huge potential upside and the appraisal work being carried out in 2016 is targeting an additional one to two trillion cubic feet of gas (tcf) in place at the P90 level.

It will depend on how much gas the partners find as to how the asset will be developed.

There is the opportunity to develop a liquefied natural (LNG) gas facility, a fertiliser plant or power project.

Bowleven is not a one asset company. It also owns Bomono, an onshore gas discovery right next to Douala, Cameroon’s second city and industrial hub.

An extended well test will determine the potential for commercialising this asset, but it is already talking to private equity fund Actis, owner of the local electricity company, about collaborating on a gas-to-power deal.

Bowleven in its results statement said one of its key objectives for the coming year is to manage its cash resources carefully, although the company is on record as saying it will consider value accretive, Africa focused acquisition opportunities.

“The sustained low oil price has created a challenging environment for E&P companies and we have taken the time to examine our current cost base to ensure that it is right-sized for current plan, and our strategic objectives,” said chief executive Kevin Hart.

“However, for those with balance sheet strength there are opportunities.

“We will evaluate this new business potential against a background of capital discipline and operational capability while continuing to drive forward progress on our existing assets."

In common with companies involved in exploration, Bowleven was loss-making in the 12 months to June 30. The deficit was US$90mln, compared with US$13.6mln a year earlier, although the former number included an impairment charge of US$76mln.

Analyst Craig Howie, at Shore Capital, said: "We look forward to completion of well testing at Bomono and the commencement of appraisal drilling at Etinde; in the meantime, we highlight Bowleven's $145mln net cash balance at the period end, which provides significant valuation support in our opinion."

Meanwhile, Mirabaud noted that operationally there was not "a great deal" to report in the statement..

Testing continues at the Moambe gas discovery at the Bomono permit in Cameroon with the rig expected to move to the Zingana discovery on completion, the broker said.

"In preparation for commercial flow rates, Bowleven has signed an MOU with Actis/Eneo, which will spell out the terms for a gas sales agreement. Meanwhile, appraisal drilling at Etinde is expected to commence next year (in line with previous guidance) with BLVN carried for the cost of the two wells up to a net cap of US$40m."

Bowleven shares eased 5.83% on the day to 24.25p.

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Tue, 10 Nov 2015 08:38:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/117292/bowleven-sitting-on-us145mln-in-cash-117292.html
Bowleven ready to take advantage of oil sector distress http://www.proactiveinvestors.co.uk/companies/news/116292/bowleven-ready-to-take-advantage-of-oil-sector-distress-116292.html Kevin Hart is confident the oil price will drift back to its pre-slump norm; the issue is one of timing, says the boss of oil and gas explorer Bowleven (LON:BLVN).

The assertion is made with the confidence of a man who has been through four cycles where the doom and gloom-mongers have predicted Armageddon.

In each case the market has rebounded and the industry has dusted itself down and got on with job of finding and producing crude, Hart, a former Cairn Energy executive, points out. 

For companies with enough cash to see them through the tough times the current downturn throws up opportunities along with the challenges.

Bowleven, which banked US$165mln from a farm-out deal in March, is one of those companies lucky enough to be cashed up as the sector headed into the downturn.

“We have distressed sellers out there having to drill wells where they have commitments,” Hart points out.

“We can therefore jump into the race without having to run the first 23 miles of the marathon.”

The source of the company’s riches is a US$250mln deal struck with Russia’s LUKOIL and privately-owned NewAge, who now each own 30% of the Etinde Permit offshore Cameroon. 

Bowleven, which has been left with 20% (the remainder is owned by the state oil firm), is now carried on a two well programme next year.

Etinde lies in shallow waters off the coast of Cameroon and is host to a number of discoveries including oil, condensate and gas. 

The P50 contingent resources is 58mln barrels of oil equivalent. 

However, there is huge potential upside and the appraisal work being carried out in 2016 is targeting an additional one to two trillion cubic feet of gas (tcf) in place at the P90 level. 

It will depend on how much gas the partners find as to how the asset will be developed.

There is the opportunity to develop a liquefied natural (LNG) gas facility, a fertiliser plant or power project.

Local intelligence suggests the Cameroon government is keen on the fertiliser or power option, while commercially it might make more sense to concentrate on LNG.

The ideal would be to have resource and reserves large enough to do two of the three projects. Hart reckons the partners will need to find 1tcf to make the twin track approach viable.

Bowleven is not a one asset company. It also owns Bomono, an onshore gas discovery right next to Douala, Cameroon’s second city and industrial hub.

An extended well test will determine the potential for commercialising this asset, but it is already talking to private equity fund Actis, owner of the local electricity company, about collaborating on a gas-to-power deal.

Those who follow the sector closely will know the pathfinder company in Cameroon gas-to-power is London-listed Victoria Oil & Gas, which has created its own network in Douala.

Hart said he has been in contact with Kevin Foo, the VOG boss, for advice and market intelligence.

And he isn’t ruling out some sort of collaboration when Bowleven is able to establish the potential of Bomono, which covers an area of 2,328 square-kilometres.

With money in its pocket, might the company look to fast-track other assets in its portfolio, such as Kenya and Zambia?

Probably not, judging by the benchmarks it has set for its assets – amended to take into account the current depressed state of the industry.

So, Bowleven will only fund opportunities that can be on-stream in 24-36 months, which are onshore, or shallow offshore and are close to infrastructure.

Kenya and Zambia fail to meet those standards, so will progress at the pace mapped out previously by executives.

However, there are projects out there that do clear Bowleven’s high hurdles – so many in fact the company has had to filter them.

In making acquisitions, Bowleven will maintain its focus on Africa, and will eschew production opportunities in favour of exploration acreage where it knows it can add value, Hart reveals.

Even without deals, the company is in a unique position in being cashed up and carried on a two-well programme.  

As Etinde reaches the crucial and expensive development phase, it may have to stand back and look rationally at its continued participation. 

Does the company spend an estimated US$140mln funding the upstream infrastructure, or does it sell the asset on to some other company higher up the food chain?

The analysts will tell you it is likely to be the latter option is most likely, which would mean a further significant windfall at some point in the future.

So, with so much potential value catalysts it will probably come as a shock to learn that shares in Bowleven are trading at a discount to cash. Not a discount to net asset value, but cash. Cold, hard cash.

Hart is at a loss to explain the disconnect, although there are some barmy valuations at the junior end of the market at the moment.

“I think we are clever enough to realise there is a viable model here. The difficulty is knowing when things are likely to turn,” says a philosophical Hart. 

“All you can do in the meantime is make sure you don’t over-expose yourself and don’t put yourself in the position where you need risk capital. In other words you work within your means.”

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Fri, 16 Oct 2015 09:48:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/116292/bowleven-ready-to-take-advantage-of-oil-sector-distress-116292.html
Bowleven extends deadline for Etinde transaction http://www.proactiveinvestors.co.uk/companies/news/64825/bowleven-extends-deadline-for-etinde-transaction-75723.html Bowleven (LON:BLVN) has said its Etinde farm-out is at the final stage of completion and it has been agreed that the deadline will now be extended to February 28.

The transaction with LukOil and NewAge has already received official government approval in Cameroon, and it is now awaiting presidential signature; this sign off is expected imminently, Bowleven said.

Although formal gazetting of the decree remains achievable before end of the month, the extension allows additional time should it be required.

Bowleven added that talks are ongoing with the Cameroon government with a view to re-securing exploration acreage in the Etinde area (which is separate to the anticipated Etinde production area).

The Etinde Exploitation Authorisation (EEA), spanning 461 square kilometres, was awarded in July 2014 and it provides exploitation and development rights for an initial period of 20 years.

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Tue, 23 Dec 2014 08:02:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/64825/bowleven-extends-deadline-for-etinde-transaction-75723.html
Bowleven to close Cameroon farm-out in October http://www.proactiveinvestors.co.uk/companies/news/61139/bowleven-to-close-cameroon-farm-out-in-october-71592.html Bowleven (LON:BLVN) told investors that the farm-out deal with LUKOIL and New Age has been set back by two months.

The ‘long-stop’ date for closing the transaction has been moved to October 31 to enable the satisfaction of the few remaining conditions.

A US$250mln deal was agreed in June and it sees Bowleven divest 50% of the Etinde project, in Cameroon.

Bowleven will be due US$170mln of cash as well as US$40mln of further cash deferred until Etinde reaches a final investment decision, while a further US$40mln has been committed for two appraisal wells.

LUKOIL will acquire 37.5% of the project, while existing Etinde partner New Age will acquire an additional 12.5% (giving it 37.5%). A subsidiary of New Age will take over as operator.

For Bowleven the cash boost from the sale gives it greater flexibility to fund its share of the project.

Today, the company said that the majority of conditions to transaction completion are now satisfied.

The outstanding condition is governmental approval in Cameroon, though Bowleven says this is being processed.

"We have made significant progress towards completion of the Etinde farm-out transaction,” said Bowleven chief executive Kevin Hart.

“We look forward to the support of the Cameroon authorities in concluding the transaction approval process and in so doing facilitating the progression of Etinde development plans and enhancing the monetisation of the Etinde acreage."

In early deals Bowleven shares were down 1.25p (3.5%) at 33.75p.

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Tue, 26 Aug 2014 09:49:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/61139/bowleven-to-close-cameroon-farm-out-in-october-71592.html
Bowleven shares advance on US$250mln Etinde stake sale http://www.proactiveinvestors.co.uk/companies/news/59399/bowleven-shares-advance-on-us250mln-etinde-stake-sale-69754.html Bowleven (LON:BLVN) shares jumped in early deals with the news it is to sell 50% of the Etinde project in a deal worth US$250mln.

Through the deal with Russia’s LUKOIL and New Age, Bowleven will receive and initial US$170mln of cash, as well as US$40mln deferred until the project reaches final investment decision and a US$40mln ‘carry’ on two appraisal wells.

LUKOIL will acquire 37.5% of the project, while New Age will acquire an additional 12.5% giving it a total stake of 37.5%. A subsidiary of New Age will take over as operator.

Bowleven says the cash boost from the sale gives it greater flexibility to fund its share of the project.

"We are extremely proud of the substantial progress that we have made with Etinde in discovering resource and creating markets,” said chief executive Kevin Hart.

“I am delighted that LUKOIL are joining us as a value-adding partner in Cameroon, alongside our existing co-venturer, NewAge.

LUKOIL are a major international integrated oil and gas group with extensive operating and marketing expertise globally and a track record of delivering world class oil and gas developments. The expanded joint venture will work together to realise the considerable potential of this world class asset.”

In London, Bowleven shares moved 5p or 12.58% higher to trade at 44.75p each.

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Tue, 24 Jun 2014 09:41:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/59399/bowleven-shares-advance-on-us250mln-etinde-stake-sale-69754.html
Bowleven unveils latest steps at Etinde permit http://www.proactiveinvestors.co.uk/companies/news/55453/bowleven-unveils-latest-steps-at-etinde-permit-65565.html FTSE 250 oil and gas explorer Bowleven (LON:BLVN) updated on its three blocks offshore Cameroon - saying the Etinde exploitation authorisation application (EEAA) has been formally submitted to the authorities.

The application, submitted on January 6 this year, details the means by which the Etinde hydrocarbons will be monetised by supplying treated gas to a government sponsored fertiliser plant and also through a liquefied natural gas (LNG) scheme.

In all, the firm holds equity interests in five blocks in Cameroon, with three blocks in shallow water and two onshore.

All are operated by Bowleven.

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Thu, 06 Feb 2014 07:45:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/55453/bowleven-unveils-latest-steps-at-etinde-permit-65565.html
Bowleven lands US$9mln investment for East Africa venture http://www.proactiveinvestors.co.uk/companies/news/49258/bowleven-lands-us9mln-investment-for-east-africa-venture-58675.html Oil junior Bowleven (LON:BLVN) has landed a US$9mln investment into its new East Africa focused subsidiary.

With this initial investment, First Oil, a privately owned British company, is taking a 30% stake in the East Africa venture.

First Oil may invest a further US$12.5mln in a second, contingent, work programme.

It has also agreed to work with Bowleven to investigate early entry opportunities in the East African Rift System, and it could contribute US$3.6mln to the AIM quoted firm's share of any subsequent investment.

"We are delighted to welcome First Oil as a strategic partner in our early stage exploration activities in East Africa and we look forward to working with the team going forward in this exciting emerging area," said chief executive Kevin Hart said in a statement.

First Oil's Steve Bowyer added: "We are pleased to announce our entry into the developing East African Rift System and look forward to working in partnership with Bowleven."

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Thu, 04 Jul 2013 09:41:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/49258/bowleven-lands-us9mln-investment-for-east-africa-venture-58675.html
Bowleven still on target for first gas in Cameroon http://www.proactiveinvestors.co.uk/companies/news/48025/bowleven-still-on-target-for-first-gas-in-cameroon-57239.html  

Bowleven (LON:BLVN) has confirmed it is still on target for first gas production from its Etinde Permit in the shallow waters off the coast of Cameroon following the completion of work on its latest well.

IM-5 successfully tested the Middle Isongo and Intra Isongo reservoirs, but has now been suspended pending the roll out of production.

Stage-one of the Etinde development is to supply 70 million cubic feet of gas a day and a formal signing ceremony, rubber stamping a deal first inked in March, was completed on Wednesday.

Bowleven and its partners will now focus on agreeing gas sales prior to making a final investment decision by the end of the year.

Separately, the Etinde exploitation authorisation application is expected to be formally submitted to the Cameroon authorities next month.

Chief executive Kevin Hart said: "We are focused on the planned phased development of Etinde and the delivery of first production from the permit, anticipated in 2016.”

 

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Thu, 23 May 2013 08:26:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/48025/bowleven-still-on-target-for-first-gas-in-cameroon-57239.html
BowLeven's price target lifted by Deutsche Bank http://www.proactiveinvestors.co.uk/companies/news/47486/bowlevens-price-target-lifted-by-deutsche-bank-56614.html Deutsche Bank (DB) has bumped up its price target for oil and gas explorer Bowleven (LON:BLVN) but not enough to justify a change in its neutral stance.

The challenge in the Bowleven investment case, according to DB, is balancing the pros with the cons.

On the positive side is the DB-calculated 186p per share net present value (using a 10% discount rate) resulting from a 20-year gas supply into the proposed fertiliser plant; on the downside, there are near-term cash constraints, and there is concentration risk.

“We would like to see more progress towards FID [final investment decision], particularly on fertiliser plant funding, before we become more constructive with our recommendation,” said Phil Corbett, an investment analyst at DB.

The key question for Corbett is how much of a discount to that 186p net present value (NPV10) to apply to the current share price. After giving the abacus a bit of a bashing, Corbett comes up with a new target price of 100p, up from 80p.

“We have moved to a formula which takes the midpoint between free cash and the unrisked NPV10 of Etinde stage 1 and adding in the Bomono upside,” Corbett explains, for those stats fan keen to understand the investment analyst’s methodology.

“In reality, any point estimate of value at this point is highly arbitrary and subject to significant revision - we would focus more on our retained Hold recommendation. Key risks: progress on Etinde Stage 1 development, Bomono farm-out,” Corbett concludes.

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Tue, 07 May 2013 11:40:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/47486/bowlevens-price-target-lifted-by-deutsche-bank-56614.html
Bowleven confirms commercial production rates in IM-5 well http://www.proactiveinvestors.co.uk/companies/news/46949/bowleven-confirms-commercial-production-rates-in-im-5-well-55987.html  

Bowleven (LON:BLVN) has announced its latest flow testing results from the IM-5 well which has bettered the group’s expectations.

The company said the testing confirmed commercial production rates and the significant liquids content of gas discovery.

The latest update revealed the findings from the Intra Isongo interval, the second of the two main reservoirs in the well, which achieved an average flow rate of 37mln cubic feet of gas and 4,664 barrels of gas condensate per day.

Combined with the previously tested Middle Isongo, the well has now demonstrated a maximum flow rate of 60mln cubic feet of gas and 7,819 barrels of condensate per day.

"We are delighted with the overall results from the IM-5 well which have surpassed our expectations,” said chief executive Kevin Hart.

“The flow rates that have been achieved on test demonstrate substantial well deliverability from both the Middle and Intra Isongo intervals and further strengthen the foundation for the planned phased development of Etinde.

“Due to the high deliverability of the Intra and Middle Isongo reservoirs we are confident we will be able to reduce the number of wells required to supply the planned fertiliser plant.”

 

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Fri, 19 Apr 2013 08:28:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/46949/bowleven-confirms-commercial-production-rates-in-im-5-well-55987.html
Bowleven confirms significant condensates in IM-5 well test http://www.proactiveinvestors.co.uk/companies/news/46383/bowleven-confirms-significant-condensates-in-im-5-well-test-55338.html  

Bowleven (LON:BLVN) has revealed ‘pleasing’ test results from the IM-5 well on the Entinde permit offshore Cameroon.

Testing of the Middle Isongo interval has confirmed significant liquid gas condensate content.

At its peak, the drill stem test flowed at a rate of 23mln cubic feet of gas and 3,155 barrels of condensate, which together equates to 7,000 barrels of oil equivalent per day.

Testing will now continue to assess the Intra Isongo interval.

"The results from the IM-5 well continue to please,” said chief executive Kevin Hart.

“We are encouraged to see the first DST result at IM-5 confirm the deliverability of liquid-rich hydrocarbons from the Middle Isongo reservoir interval at commercial rates in excess of our pre-drill estimates.

“This result bodes well for the planned phased development of Etinde. We now look forward to test results from the Intra Isongo."

 

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Tue, 02 Apr 2013 08:20:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/46383/bowleven-confirms-significant-condensates-in-im-5-well-test-55338.html
Bowleven spikes 10% after well results exceed expectations http://www.proactiveinvestors.co.uk/companies/news/45639/bowleven-spikes-10-after-well-results-exceed-expectations-54454.html  

Shares in the explorer Bowleven (LON:BLVN) opened 10% higher this morning after better-than-expected results from its IM-5 well, on the Etinde Permit, in Cameroon.

An assessment of the reservoir intervals suggests there is 1.2 trillion cubic gas in place, a rise of around 162% on initial estimates.

They are also thought to contain 184mln barrels of condensate, representing an 868% increase on earlier figures.

Chief executive Kevin Hart said: "We are very pleased with the results of the IM-5 well to date which have significantly exceeded our pre-drill expectations.

“The substantial increase in gas volumes and more importantly liquid hydrocarbons place Bowleven in an excellent position to progress with the development of Etinde.  We look forward to the results of testing."

At 8.40am, the stock was changing hands for 87.5 pence, representing a rise of 9.72%.


 

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Wed, 06 Mar 2013 08:40:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/45639/bowleven-spikes-10-after-well-results-exceed-expectations-54454.html