TIDMBLVN
RNS Number : 6849F
BowLeven Plc
24 February 2015
24 February 2015
Bowleven plc ('Bowleven' or 'the Company')
Etinde Farm-Out Update - Presidential Decree Gazetted
Bowleven, the Africa focused oil and gas exploration group
traded on AIM, is pleased to announce that the Presidential decree
regarding the Etinde transaction has now been gazetted. This has
satisfied the final outstanding condition of the farm-out process
with LUKOIL and NewAge. The transaction is now scheduled to
complete within 15 business days, at which point the company will
receive the initial cash proceeds of approximately $170 million
from LUKOIL and NewAge.
The farm-out transaction was announced on 24 June 2014 and
comprises the acquisition of a 30% and additional 10% interest in
Etinde by LUKOIL and NewAge, respectively, in return for an
aggregate consideration of approximately $250 million. The proceeds
comprise:
-- Approximately $170 million cash at completion (includes $5
million estimated working capital adjustment, subject to
finalisation);
-- Up to $40 million (net) carry for two Etinde appraisal wells;
-- $15 million cash to be received on completion of appraisal drilling; and
-- $25 million cash contingent upon and to be received at Etinde development project FID.
Bowleven will retain a 20% interest in Etinde and operatorship
transfers to NewAge.
Kevin Hart, Chief Executive of Bowleven plc, said:
"The completion of the Etinde farm-out places us in a strong
position to exploit further our existing asset base. The resulting
consideration of cash and carry, together with an expanded and
strengthened joint venture, will enable us to progress both the
Etinde development and importantly to participate in the near-term
appraisal of the exciting Intra Isongo formation.
Looking forward, our immediate challenge is to continue to
optimise the potential of our Cameroon acreage, with drilling and
commercialisation activities on Etinde and, shortly, Bomono. While
our strengthened balance sheet is a real advantage through this
volatile period for the sector, we remain determined to exercise
discipline in the choice and timing of our capital spending."
ENQUIRIES
For further information please contact:
Bowleven plc
Kevin Hart, Chief Executive 00 44 131 524 5678
Kerry Crawford, Finance Director
Brunswick Group LLP
Patrick Handley 00 44 207 404 5959
Simon Maine
Macquarie Capital (Europe) Limited (Nomad)
Jon Fitzpatrick 00 44 203 037 2000
Ken Fleming
Nick Stamp
Notes to Editors:
Bowleven is an African focused oil and gas exploration group,
based in Edinburgh and traded on AIM. Bowleven's strategy is
focused on creating and realising material value through
exploration-led organic growth. Bowleven holds equity interests in
three blocks in Cameroon, with one block located offshore in
shallow water and two onshore. All of these blocks are currently
operated by Bowleven.
Bowleven also holds an equity interest in an onshore block in
Kenya, operated by Adamantine Energy, and has been awarded three
blocks in Zambia, with applications on two blocks pending.
On 24 June 2014, Bowleven announced that the Group had entered
into a conditional farm-out agreement to sell an aggregate 40%
(post government back-in) operated interest in the Etinde Permit,
Cameroon to LUKOIL and NewAge (or their nominated affiliates).
On completion of the farm-out transaction operatorship of the
offshore Etinde Permit in Cameroon will transfer to NewAge and
participating interests will be:
NewAge: 30%
LUKOIL: 30%
Bowleven: 20%
SNH: 20%
Information on LUKOIL
LUKOIL is one of the largest listed oil and gas companies in the
world with a market capitalisation of around $40 billion. LUKOIL is
listed on the Russian Stock Exchange (MICEX) and has had a full
listing on the London Stock Exchange for over 10 years.
It has over 20 years of operating experience. Most of the LUKOIL
group's exploration and production activity is located in Russia
and its main resource base is in Western Siberia. It also has
E&P interests in Sierra Leone, Cote d'Ivoire, Ghana, Egypt,
Saudi Arabia and Iraq amongst others and is currently implementing
oil & gas exploration and production projects in over 10
countries. It has extensive experience in operating multi-tcf gas
fields, developing and producing hydrocarbons (including the
processing of natural gas liquids) and working with multiple
stakeholders.
Information on NewAge
NewAge (African Global Energy) Limited is a privately-owned oil
and gas exploration and production company, with operations in 7
countries and a portfolio of 21 oil and gas concessions covering 6
hydrocarbon basins. NewAge has experience in finding and developing
oil and gas in emerging areas. NewAge has completed seismic
acquisition in all assets and has discovered and appraised 5 oil
fields and 6 gas fields. NewAge is currently producing from two
fields and has two further development fields expected to commence
production in 2015. Camop, an existing partner in the Etinde joint
venture, is a subsidiary undertaking of NewAge and has held a 25%
(20% post government back-in) equity interest in the Permit since
2009.
As previously announced, the Group has a $30 million bridge
facility available for utilisation pending completion of the
farm-out transaction. This facility is not currently drawn.
Following completion any amounts drawn will be repaid and the
facility cancelled.
Notes to Announcement:
(1) The information in this release reflects the views and
opinions of Bowleven as operator and has not been reviewed in
advance by its joint venture partners.
Glossary of Terms:
The following are the main terms and abbreviations used in this
announcement:
AIM the market of that name operated by the London
Stock Exchange
Bowleven Bowleven plc (LSE:BLVN) and/or its subsidiaries
as appropriate
Etinde Permit the Etinde Exploitation Authorisation (EA)
Area. The Etinde EA, granted on 29 July 2014,
covers an area of approximately 461km(2) (formerly
block MLHP-7) and is valid for an initial period
of 20 years
FID final investment decision
LUKOIL LUKOIL Overseas West Project Ltd, a subsidiary
undertaking of OAO LUKOIL
NewAge New Age (African Global Energy) Limited
SNH Société Nationale des Hydrocarbures,
the national oil and gas company of Cameroon
$ United States of America Dollars
This information is provided by RNS
The company news service from the London Stock Exchange
END
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