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Bowleven announces 2H19 interim results

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Oilfield Technology,

Bowleven, the Africa-focused oil and gas exploration Group traded on AIM, has announced its unaudited interim results for the six months ended 31 December 2019.


  • Continued progress on Etinde development options and working with joint venture (JV) partners towards agreeing Final Investment Decision (FID) in late 2020.
  • Lead contractor appointed to manage the FEED process.
  • TechnipFMC are expected to commence project activity in early April, with a planned duration of five to eight months.
  • Letter of Intent (LOI) signed between Victoria Oil & Gas Plc and New Age (African Global Energy) Ltd, for the supply of gas from the Etinde field, offshore Cameroon.
  • Ongoing market volatility, caused by the Covid-19 global pandemic and the recent fall in global oil prices could potentially have an adverse effect on the Etinde project timeline.


  • The JV partners are proceeding with:
  • - FEED related processes
    - Continuing commercial activities focused around a liquids-based development alongside discussion of sales terms with potential gas, condensate and Liquefied Petroleum Gas (LPG) off-takers
    - Preparatory steps for raising development finance, potentially on a jointly funded basis, to implement the Etinde development project
  • Reprocessing seismic data relating to the IE/ID/IB/IC areas of Etinde.


  • Discussions with the Government of Cameroon and Société Nationale des Hydrocarbures (SNH) to finalise the closing position and return the licence to the State are ongoing.
  • Group cash balance at 31 December 2019 was circa US$10.9 million with a further US$2.3 million held in financial investments with no debt and material financial commitments.
  • A bank guarantee relating to the deposit of US$0.5 million is due to end shortly and we expect this amount will be added to our free cash resources shortly.
  • Bowleven considers the value of cash and investment of US$13.7 million to be sufficient to meet the Group’s financial requirements until FID on Etinde is reached.
  • The loss for the six month period was US$1.4 million compared to US$1.4 million in the equivalent period last year.

Eli Chahin, CEO of Bowleven plc, said: “During the period, we were pleased with the progress made towards achieving FID at Etinde. We advanced a number of important project related work streams, including; appointing a lead FEED contractor, assessing commercial arrangements for the produced condensate and gas, and reviewing potential financing options for the project.

At a time of considerable market turbulence, we are fortunate to benefit from a robust financial position, with in excess of US$10 million of cash on the balance sheet and no debt. Coupled with our low cost base, we are well funded to reach FID, after which we will receive US$25 million from the JV partners.

Despite the solid progress Bowleven has been making, recent macro conditions have the potential to impact the timing of the Etinde project. As a business, we will continue to work towards achieving FID before year-end and we look forward to keeping all of our stakeholders appraised on progress over the coming months.”

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