Bowleven, the Africa focused oil and gas, Exploration and Production Company with key interests in Cameroon, has announced its unaudited interim results for the six months ended 31 December 2023.
HIGHLIGHTS
Operational
Etinde
- In January 2024, Perenco wrote to New Age formally withdrawing its interest in acquiring New Age's stake and operatorship in the Etinde licence and cancelled their sale and purchase agreement. New Age wrote to the Government of Cameroon to withdraw their request to approve the transfer of ownership. Perenco gave no specific reasons for its withdrawal.
- Etinde operations are currently in a "care and maintenance" mode with limited ongoing activity other than New Age's maintenance of the Cameroon project office. The JV partners are now jointly re-energising efforts and have held an initial meeting to discuss the next steps. The JV partners have agreed an outline for a way forward and New Age has been tasked to prepare to hold a meeting with SNH as soon as possible to present a development proposal and discuss the potential for the Etinde development project going forward.
Corporate
- The loss for the 6-month period was $1.1 million compared to $1.0 million for the same period in the prior year. The slightly increased loss is primarily due to a combination of lower recharges from Etinde, as project development activities have been reduced, and further expenditure reduction measures imposed by Bowleven's Board, offset by a $0.2 million inventory impairment charge at Etinde. The Group cash balance at 31 December 2023 was $0.57 million with no financial investments. The Group has no debt or material financial commitments. As at 29 February 2024, the Group's cash and cash equivalents balance was $0.37 million.
- Bowleven's expenditure run rate has been temporarily reduced to between $125,000 and $200,000 per month (with actual monthly expenditure depending on Etinde cash call amounts) to extend Bowleven's current cash resources.
- On 14 March 2024 the Company announced a proposed open offer to all qualifying existing shareholders at an offer price of 0.1 pence per new share with a view to raising a c£1.38 million (net of issue costs). Crown Ocean Capital, the company's largest shareholder has agreed to subscribe for all shares not otherwise taken up in the open offer. The completion of the open offer is conditional on, inter alia, the passing of all resolutions to be put to a general meeting of shareholders to be held on 2 April 2024. Further details can be found in the circular and announcement published by the Company on 14 March 2024.
Eli Chahin, Chief Executive Officer of Bowleven plc, said:
'We are disappointed that the proposed New Age/Perenco transaction did not receive formal approval from SNH and the Government of Cameroon. However, we are satisfied that the JV partnership all agree that Etinde has significant value and excellent prospects so long as we can reach agreement with SNH and the Government of Cameroon on the lowest risk, economically optimum development option as soon as possible. As we continue to keep extremely close control over our finances, the completion of our proposed open offer will give us the necessary capital to continue operating and work towards FID at Etinde.'
Source: Bowleven
