Shares in BowLeven PLC (AIM:BLVN) fell 12% to 0.57p on Friday, down around 8% over the past 12 months, after the Cameroon-focused E&P company released its full year results, where it said it is still awaiting government approval for Perenco to take over the operatorship of the Etinde project.
The company reported a $2 million loss for the financial year to 30 June, down from US$2.5 million.
A limited “care and maintenance” work programme and budget for Etinde project has been approved by the joint venture partners on a quarter-by-quarter basis.
Bowleven said it continues to believe that governmental approval "will be forthcoming and the transaction will complete either in late 2023 or more likely early 2024" but acknowledged that it "has remained outstanding for a significant period and Bowleven reminds stakeholders that there can be no guarantee that it will complete, nor as to the timing of completion".
The company reported closing available funds of $1.5 million at the end of June, reduced to $1 million at the end of October.
Bowleven said its projections indicate current funds may be depleted by summer 2024 without new investment.
The board is said to be exploring various fundraising options, including a potential equity infusion from its major shareholder at a significant discount, though the terms and timing remain uncertain.
House broker Shore Capital said: "We remain of the view that the investment case for Etinde is fundamentally strong, with Bowleven’s interest having a carrying value exceeding US$150m – we will, however, continue to look forward to further updates, particularly with regard to progress towards completion of the Perenco transaction, and regarding ongoing equity fundraising initiatives."