BowLeven Plc Group Operational Update (4522G)
March 04 2015 - 1:00AM
UK Regulatory
TIDMBLVN
RNS Number : 4522G
BowLeven Plc
04 March 2015
4 March 2015
Bowleven plc ('Bowleven' or 'the Company')
Group Operational Update
Bowleven, the Africa focused oil and gas exploration group
traded on AIM, announces an update on its operational activities,
onshore Cameroon and Kenya.
Bomono Permit, Cameroon
Drilling contractor AODL has assembled the rig and drilling
systems at Zingana, the first of two well locations in the 2015
exploration programme. Routine function checks have identified
certain mechanical and control issues that need to be addressed by
AODL before drilling operations commence. A further update on the
expected spud date will be provided in due course.
The technical and commercial work on the development options in
the event of success on Bomono continues, and is clearly advantaged
by the evolving industry cost environment.
Block 11B, Kenya
Adamantine, operator of block 11B, has advised that they have
applied to the Kenyan authorities for a 15 month extension to allow
for the acquisition, processing and evaluation of 2D seismic.
Logistical issues, including security concerns, have delayed the
commencement of seismic operations, such that the programme will be
unable to be completed prior to the expiry of the first exploration
phase of the licence on 26 May 2015.
Interim Results
The company will announce its Interim Results for the six months
ended 31 December 2014 as planned on Wednesday 25 March 2015.
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) 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.
As announced on 24 February 2015, the final condition of the
farm-out has been satisfied and the transaction is now scheduled to
complete within 15 business days of the final condition being met.
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%
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:
Adamantine Adamantine Energy (Kenya) Limited,
the current operator of, and holder
of a 50% participating interest
in block 11B.
AIM the market of that name operated
by the London Stock Exchange
AODL Africa Onshore Drilling LDC, a wholly-owned
subsidiary of Africa Fortesa Corp
Ltd, and the entity which has entered
into the rig contract with Bowleven
in respect to the Bomono Permit
Block 11B The production sharing contract
between the Republic of Kenya, Adamantine
Energy (Kenya) Limited and Bowleven
(Kenya) Limited dated 30 May 2012,
in respect of the area of approximately
14,287km(2) onshore Kenya and designated
as block 11B; or, as the context
may require, the contract area to
which this production sharing contract
relates
Bomono Permit the production sharing contract
between the Republic of Cameroon
and EurOil, dated 12 December 2007,
in respect of the area of approximately
2,328km(2) comprising former blocks
OLHP-1 and OLHP-2 onshore Cameroon;
or, as the context may require,
the contract area to which that
production sharing contract relates
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
LUKOIL LUKOIL Overseas West Project Ltd,
a subsidiary undertaking of OAO
LUKOIL
NewAge New Age (African Global Energy)
Limited
This information is provided by RNS
The company news service from the London Stock Exchange
END
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