Bowleven PLC, the Africa-focused oil and gas company, has a new partner on its Etinde permit.
The company has been informed by New Age (African Global Energy) Limited, the operator of the Etinde joint venture (JV), that New Age has signed a definitive conditional agreement with a subsidiary of Perenco SA to transfer all of New Age's participating interests in the Etinde permit, and operatorship of the Etinde JV, to Perenco.
Under the terms of the joint operating agreement, both LUKOIL and Bowleven have a 30 day right of pre-emption over New Age's interest.
Notwithstanding the outcome of the Perenco transaction, Bowleven will continue to be entitled to a final investment decision (FID) payment of US$25mln from its Etinde JV partners which, following completion of the transaction, would include Perenco.
"The prospect of Perenco becoming our partner and operator at the Etinde permit is very positive news. We believe that Perenco's proven Cameroon oil and gas developments and substantial experience provide an opportunity to accelerate our efforts to secure FID and the associated US$25mln payment to Bowleven," said Eli Chahin, the chief executive officer of Bowleven.
Shares in Bowleven were up 40% at 3.5p in the first half-hour of trading.