TIDMBLVN
RNS Number : 3911U
Bowleven plc
29 March 2019
29 March 2019
Bowleven plc
('Bowleven' or 'the Group' or 'the Company')
Interim Results
Bowleven, the Africa focused oil and gas exploration Group
traded on AIM, today announces its unaudited interim results for
the six months ended 31 December 2018.
HIGHLIGHTS
-- Loss for the 6 month period was $1.4 million compared to $2.8
million in the equivalent period last year
-- Special dividend of GBP0.15 per share declared on 7 January
2019, equivalent to GBP48.5 million, paid in full on 8 February
2019
-- Ongoing data analysis following the completion of the 2018
two well appraisal drilling programme continues
-- Field development plans for an Isongo Marine ("IM") focused
development and update of the volumetric Resource held in the
licence area expected to be formalized later in the year
-- Focus on Etinde development options and working with joint
venture ("JV") partners with aim of agreeing Final Investment
Decision ("FID") during late 2019 or early 2020
-- G&A further reduced to $2.1 million (H1 2018: $3.6 million)
Operational
Etinde
-- 2018 appraisal drilling programme made new discoveries and
further improved understanding of the reservoir. Analysing and
interpreting the impact of the data collected is ongoing
-- The JV partners are proceeding with:
o Technical analysis of the data collected from the 2018
appraisal drilling programme to validate the IM and Isongo E ("IE")
field development plans and the Etinde resource volumetric
update
o Engineering design studies to assess the engineering and
commercial feasibility of all available development options. The JV
partners expect to discuss and agree our preferred development
solution(s) in the near future
o Commercial analysis of all available development options
focused around a liquids-based development alongside discussion of
sales terms with potential gas off-takers
-- Etinde FID decision expected in late 2019 or early 2020
Bomono
-- The licence term ended on 12 December 2018. Discussions are
ongoing with the Government of Cameroon and Société Nationale des
Hydrocarbures ("SNH") regarding the future of the licence. The
Company will update as appropriate
Corporate
-- Group cash balance at 31 December 2018 was circa $70.1
million (excluding $0.5 million held on deposit in respect of a
guarantee) with a further $8.7 million held in financial
investments, with no debt and material financial commitments.
Following the payment of the special dividend, the cash balance has
reduced to $6.9 million at the end of February 2019. Bowleven
considers this sufficient to meet the Group's financial
requirements until FID on Etinde
-- The loss for the 6 month period was $1.4 million compared to
$2.8 million in the equivalent period last year
Eli Chahin, Chief Executive Officer of Bowleven plc, said:
"The 2018 appraisal drilling programme further strengthened our
understanding of Etinde and has been vital in progressing our
thinking on the development of this significant asset with proven
and probable resource of 1 TCF of wet gas in place.
We continue to move towards selecting a development plan with
our JV partners which we expect to culminate in a Final Investment
Decision in the coming months, an important value accretive point
for the Company.
The Board was pleased to be able to return a significant amount
of cash to shareholders in the financial year creating an important
liquidity event for our investors, whilst ensuring the Company
retained the financial flexibility to reach FID on the Etinde
project."
ENQUIRIES
For further information, please contact:
Bowleven plc
Eli Chahin, Chief Executive 00 44 203 327 0150
Celicourt Communications Ltd
Mark Antelme 00 44 207 520 9261
Henry Lerwill
Stockdale Securities Ltd (NOMAD and Broker)
Robert Finlay 00 44 207 601 6100
Antonio Bossi
David Coaten
A copy of this announcement is available on the Bowleven website
www.bowleven.com
Notes to Editors:
Bowleven is an African focused oil and gas exploration group,
based in London and traded on AIM. Bowleven's vision is to maximise
value for shareholders by (i) realising the greatest value of the
Group's Etinde asset, (ii) maintaining a relentless focus on both
Operational and Capital expenditure discipline and (iii) ensuring
that cash is wisely invested to cover G&A costs. Bowleven holds
equity interests in three blocks in Cameroon, with one block
located offshore in shallow water (operated by NewAge) and two
onshore (operated by Bowleven).
Notes to Announcement:
The information in this release reflects the views and opinions
of Bowleven and has not been reviewed in advance by its joint
venture partners.
CEO's REVIEW
In the six month period progress has continued to be made
following the Board's revised strategy, implemented when the new
management team assumed control in March 2017.
The Group's strategy remains focused on monetising our Cameroon
assets. The active management of the portfolio and the readjustment
of the cost base has positioned the Group to deliver accelerating
returns to shareholders by focusing on developing our Etinde asset
as our highest priority. The Company's relationship with the Joint
Venture partners has improved under the new management team, which
bodes well for the Etinde project going forward. Both SNH and the
Government of Cameroon are increasingly aligned on the best way to
develop Etinde, which should ensure that the development of this
key asset proceeds as rapidly as possible. This is a fundamental
priority for all the parties involved.
The results for the six month period ending 31 December 2018
demonstrate further significant reduction in the business'
controllable G&A, notwithstanding the significant increase in
the level of activity on the Etinde licence due to the delivery of
the 2018 appraisal drilling programme, followed by the commencement
of a wholesale reappraisal of the Etinde development plans during
late 2018.
The short-term focus of the Etinde upstream JV partners is to
complete the review of the field development options during the
first half of 2019. In addition to in-house activity by each of the
JV partners, the JV has placed significant contracts with a number
of consultancies and providers to undertake Front End Engineering
Design (FEED) studies across a range of development options. This
will be followed by a more detailed investigation of the
preferences. Commercial discussions with potential gas off-takers
are running in parallel to development planning. Total expenditure
incurred across the 12 month period from September 2018 to
September 2019 on these studies is budgeted to be around $15
million in total for the JV. Additional expenditure will be
incurred by each JV partner in validating the approach which is
deemed in the best interest of our shareholders.
Technical work is also ongoing to maximise the value and utility
of the data acquired from the 2018 drilling programme. Whilst the
resource increment from the programme will not be as large as
hoped, valuable data was collected which will significantly reduce
the technical risk attached to the development programme. Bowleven
expects to announce revised Resource volumetric data during late
2019.
Cash Investment Strategy
The Group has continued to review its "surplus" cash investment
strategy. Our initial plan during the last financial year, was to
significantly increase the rate of return earned from our cash
deposits, by making financial investments, without any major shift
in the risk profile of the investment pool. As a result, the Group
invested around 25 % of its cash in a number of financial
investments in shares, preference shares and long term corporate
debt. The remainder continued to be held in cash short term Money
Market deposits and in various investment grade cash funds.
Special Dividend
On 7 January 2019 Bowleven declared a special dividend of
GBP0.15 per share, which after adjustment for Treasury and Employee
Benefit Trust shares, was equivalent to GBP48.5 million in total.
The special dividend was paid on 8 February 2019.
The Board's decision hinged on the immediate capital spending
requirements on Etinde and Bomono and the proximity of the Etinde
FID point. Following the results of the 2018 Appraisal drilling
programme, and the unsuitability of the proposed Etinde FLNG based
development, it became clear that a significant revision to the
Etinde development proposals was needed and that FID would be
reached in 2020. In light of the absence of a short term investment
requirement, the Board believed it would be best to honour its
commitment to return "surplus" funds to shareholders. The Board
considers Bowleven's cash resources will be sufficient to meet the
Group's financial needs prior to the receipt of $25 million on
FID.
Final Investment Decision for Etinde
The Etinde development will be more liquids-focused, as opposed
to gas based as originally contemplated, with a FLNG development.
Accordingly, the relative importance of LNG to the success of the
Etinde development has diminished. Lower than forecast gas volume
reopened other development options which had earlier been
de-prioritised given the focus on an Etinde FLNG development.
Whilst the development time line has extended, the likely
capital investment cost has significantly reduced as the potential
gas production volume has fallen. We believe that this has
increased the likelihood of the successful development of Etinde
and we remain convinced that it will proceed in the short term.
OPERATIONS REVIEW
Etinde Exploitation, Offshore Cameroon (20% equity interest)
During 2018, the Etinde joint venture partners (comprising
NewAge (operator), Lukoil and Bowleven) completed a two well
appraisal drilling programme comprising the IM-6 and IE-4
wells.
Since ending the drilling programme, we have continued to
undertake analysis of the data collected, which includes fluid
samples, cores, side wall cores and log data. The samples taken are
being subject to chemical analysis, petrophysical analysis,
micro-fossil based stratigraphic studies and sedimentological
analysis. This comprehensive analysis programme aims to extract the
maximum technical value from the two wells and then update and
revise the geological and structural models of the IM and IE
fields, with initial priority being given to the IM field. As well
as integrating the new well derived data, we are also seeking to
improve the geological correlation between all of the existing
wells to update reservoir mapping and continuity models. Alongside
this data analysis programme, we are reviewing and updating our
interpretation of the geophysical data to ensure that the reservoir
horizons and structural boundaries are consistent with the new
data.
Once data analysis and interpretation are completed, the revised
geological model will be used to update the IM and IE field
development models and to determine the JV's view of the licence's
resources. This will be subject to external review and a revised
third party resource update will be prepared by the end of the
calendar year. Bowleven will update our Resource volumetric data
accordingly.
Alongside this technical data update, the JV partners are
running two parallel work streams.
One comprises commencing or continuing commercial discussions
regarding gas sales, whilst the other is focused on engineering
design studies for the proposed liquids based development of the IM
field. These consultant-led studies are often referred to as
pre-FEED/FEED activity.
The JV partners are aligned on the view that the economic value
of the Etinde field lies in the condensate and light oil resource
base. However, the volume of wet gas (natural gas, liquefied
petroleum gas fractions and CO2 content) fraction is very
significant and the feasibility of any commercial development will
depend on how the gas fraction is utilised.
Bowleven considers that the most likely commercial development
will be based around liquid sales alongside a mixture of domestic
gas supply (for electricity generation in Cameroon) and Export LNG.
The LPG component of the wet gas would also be sold domestically or
for export depending on how and where gas processing occurs.
The initial pre-FEED/FEED studies currently underway are based
on the assessment of the economic viability parameters for each of
the commercial development options outlined above. We expect to be
able to narrow our development preferences in the immediate future,
although we doubt any option will be removed from further
consideration at this stage pending extensive commercial
discussions with third parties, of whom SNH and the Government of
Cameroon are key.
The JV partners are also actively addressing development
scenarios where the potential gas offtake solutions are not
available in time for the completion of the Etinde field
development project.
Bomono, Onshore Cameroon (100% equity interest)
Bowleven was awarded a two year extension to the Bomono
Exploration licence (to 12 December 2018) in late 2016. An
application for a Provisional Exploitation Authorisation was made
alongside the 2016 licence extension application. We have renewed
this application in late 2018 with a view to exploring the
potential for a small scale gas to power development of the
discovered Moambe and Zingara gas fields. These applications
currently remain under review by the Cameroon authorities.
Although the licences formerly reached the end of their term in
December 2018, discussions remain ongoing between Bowleven, SHN and
the Government of Cameroon regarding Bowleven continuing the Bomono
PSC under a development licence. No decision has been reached at
the current time.
Volumetric Update
P50 (C2) net contingent resources to Bowleven remain as 58 mmboe
at this time. Net contingent resources do not currently include any
contingent resource volumes for the Bomono Permit. An update to
Etinde volumes is anticipated later this year.
FINANCE REVIEW
The Group has reported a loss of $1.4 million (H1 2018: loss of
$2.8 million) for the six months ended 31 December 2018.
The Group's current G&A charge was $2.1 million compared to
$3.6 million for the equivalent period last year. This includes
$1.2 million of G&A costs relating to the Etinde project (H1
2018: $0.3 million) charged by the Operator. The reduction in
period on period controllable G&A expenditure reflects
Management's continued attention to managing the Group's
expenditure. Current Group controlled cash expenditure is around
$150,000 per month, with a similar additional amount due to the
Etinde Operator's G&A recharge. Bowleven is likely to incur
slightly higher costs going forward reflecting both our in-house
activity and the Etinde Operators G&A relating to the pre-FID
Etinde development project.
Finance income comprises interest and dividend income of $1.1
million, foreign exchange gain of $0.3 million and a mark to market
loss of $0.6 million arising from the revaluation of the Group's
financial investments. This contrasts with the equivalent period in
FY 2017/18, where net income was $0.8 million, comprising a Forex
gain of $0.2 million and interest income of $0.6 million. The
change in magnitude of Forex, especially in respect of the Foreign
Exchange movement in equity, is largely due to changing the
functional currency of Bowleven plc company from GBP to USD as
explained in the 2018 Annual report & accounts.
As a result of the 2015 farm-out agreement, the Group was
carried for its share of the budgeted cost of the two well Etinde
2018 appraisal drilling programme, up to a maximum amount of $40
million. The Group capitalised $13 million of non-cash capital
expenditure arising from the application of the carry and the
release of surplus deferred consideration during the reporting
period. The accounting treatment adopted is explained in detail in
Note 14 of the Bowleven 30 June 2018 Annual Report & Accounts.
Whilst the drilling programme has largely been completed, there is
some expenditure which remains under discussion as well as some
on-shore contractual costs which will continue until Spring 2019.
The Group holds $0.5 million of deferred consideration on its
balance sheet, pending notification of the final cost from the
Operator. Post completion geological, reservoir engineering studies
and other studies are not subject to the carry.
Capital expenditure cash flows during the period were $1.4
million (H1 2018: $0 million), of which $1.3 million was Bowleven's
share of the Etinde geological and development project expenditure
recharged by the Operator.
At 31 December 2018, Bowleven had $70.1 million of cash and cash
equivalents and no debt (H1 2018: $83.3 million and no debt) plus
$0.5 million of bank deposits (H1 2018: $0.5 million). The primary
cause of period on period reduction is due to the net expenditure
on the acquisition of Financial Investments across the intervening
period alongside Bowleven's operating costs and capital expenditure
incurred on the Etinde project.
Under the terms of the Etinde farm-out transaction that
completed in March 2015, the Group also has access to a further $25
million which is receivable on achieving Etinde FID. This is held
as a contingent asset pending further clarity around Etinde project
sanction.
OUTLOOK
During the remainder of 2019, the Group expects to continue to
work alongside the other Etinde JV partners, exploring both
commercial opportunities and related development engineering
designs and costs, with a view to having sufficiently detailed,
costed development plan to reach an FID by late 2019 or early
2020.
The post drilling analysis of the results of the IM-6 and IE-4
appraisal wells drilled in Summer 2018 is ongoing. The new well
data is being incorporated into the Etinde sub-surface geology and
structural maps alongside a remapping exercise to ensure that the
sub-surface development plan, which is integrated into the JV's
commercial and engineering design work, reflects our best
understanding of the IM and IE fields resource base. The JV
partners' plan to undertake an external resource assessment of the
revised data with a view to releasing a Resource update later in
2019.
PRINCIPAL RISKS AND UNCERTAINTIES
The ultimate development of the Etinde wet gas and light oil
discoveries is likely to be technically dependent on our ability to
utilise the volume of gas produced by the liquid.
The Bomono PSC reached its contractual termination date in
December 2018. The Government of Cameroon has not formally
terminated Bowleven's licences at the current date. We consider
that it may be possible to find a way to develop the Moambe and
Zingana gas discoveries. Hence, we remain in discussion with SNH
regarding the potential opportunity and seek the issue of an
exploitation licence by the Government following approval by SNH.
In the absence of any such exploitation licence, we expect
discussions to focus on the termination of the licence, which may
give rise to a potential charge being levied by SNH.
RESPONSIBILITY STATEMENT
The Directors confirm that to the best of their knowledge:
-- The condensed set of financial statements has been prepared
in a manner consistent with lAS 34 'Interim Financial Reporting'
and the full year end accounts; and
-- The interim management report includes a fair review of the
important events during the first six months and description of
principal risks and uncertainties for the remaining six months of
the year
Eli Chahin
Chief Executive Officer
28 March 2019
GROUP INCOME STATEMENTS
6 months 6 months Year ending
ending ending
31 December 31 December 30 June
2019 2018
(unaudited) (unaudited) 2018
$000 $000 (audited)
$000
-------------------------------------- ---- ------------- ------------- ------------
Revenue - - -
Administrative expenses (2,148) (3,570) (6,294)
-------------------------------------------- ------------- ------------- ------------
Operating loss before financing (2,148) (3,570) (6,294)
Finance and other income/(expense) 753 795 (748)
-------------------------------------------- ------------- ------------- ------------
Loss from operations before taxation
Taxation - - -
Loss for the period/year from
continuing operations (1,395) (2,775) (7,042)
Loss attributable to:
Owners of the parent undertaking (1,395) (2,775) (7,042)
-------------------------------------------- ------------- ------------- ------------
Basic and diluted loss per share
($/share) from continuing operations (0.00) (0.01) (0.02)
-------------------------------------------- ------------- ------------- ------------
GROUP STATEMENTS OF COMPREHENSIVE INCOME
6 months 6 months
ended ended Year ended
31 December 31 December 30 June
2018 2017 2018
(unaudited) (unaudited) (audited)
$000 $000 $000
---------------------------------------------- ------------- ------------- -----------
Loss for the year (1,395) (2,775) (7,042)
---------------------------------------------- ------------- ------------- -----------
Other Comprehensive Income:
Items that will be reclassified to
profit and loss:
Currency translation differences - (700) 1,986
Total comprehensive loss for the period/year (1,395) (3,475) (5,056)
Attributable to:
Owners of the parent undertaking (1,395) (3,475) (5,056)
---------------------------------------------- ------------- ------------- -----------
GROUP BALANCE SHEETS
31 December 31 December 30 June
2018 2017 2018
(unaudited) (unaudited) (audited)
$000 $000 $000
================================== ============= ============= ===========
Non-current assets
Intangible exploration assets 214,222 172,744 199,712
Property, plant and equipment 45 155 39
---------------------------------- ------------- ------------- -----------
214,267 172,899 199,751
Current assets
Financial investments 8,739 - 19,073
Inventory 0 1,179 746
Trade and other receivables 2,839 1,894 2,903
Deferred consideration 450 39,633 12,984
Bank deposits 500 500 500
Cash and cash equivalents 70,124 83,307 62,734
---------------------------------- ------------- ------------- -----------
82,652 126,513 98,940
---------------------------------- ------------- ------------- -----------
Total assets 296,919 299,412 298,691
---------------------------------- ------------- ------------- -----------
Current liabilities
Trade and other payables (604) (823) (1,066)
---------------------------------- ------------- ------------- -----------
Total liabilities (604) (823) (1,066)
---------------------------------- ------------- ------------- -----------
Net assets 296,315 298,589 297,625
---------------------------------- ------------- ------------- -----------
Equity
Called-up share capital 56,517 56,390 56,517
Share premium 1,599 1,276 1,599
Foreign exchange reserve (69,857) (72,543) (69,857)
Other reserves 1,161 4,730 1,076
Retained earnings 306,895 308,736 308,290
---------------------------------- ------------- ------------- -----------
Total equity 296,315 298,589 297,625
---------------------------------- ------------- ------------- -----------
Attributable to:
Owners of the parent undertaking 296,315 298,589 297,625
Total equity 296,315 298,589 297,625
---------------------------------- ------------- ------------- -----------
GROUP CASH FLOW STATEMENT
6 months 6 months
ended ended Year ended
31 December 31 December 30 June
2018 2017 2018
(unaudited) (unaudited) (audited)
$000 $000 $000
============================================== ============= ============= ===========
Cash Flows from Operating Activities
Loss before tax (1,395) (2,775) (7,042)
---------------------------------------------- ------------- ------------- -----------
Adjustments to reconcile Company loss before tax to net cash used in
operating activities:
Depreciation of property, plant and
equipment 30 27 88
Inventory Impairment 150 - 1,607
Finance (income)/expense (753) (795) 748
Equity-settled share based payment
transactions 85 - 167
Profit on disposal of financial investments (45) - -
Loss on disposal of fixed assets 49 - 17
---------------------------------------------- ------------- ------------- -----------
Adjusted loss before tax prior to
changes in working capital (1,879) (3,543) (4,415)
Decrease in Inventory - 1,179 -
Decrease/(Increase) in trade and other
receivables 160 42 (629)
Decrease in trade and other payables (462) (462) (445)
Exchange differences 92 (456) (418)
---------------------------------------------- ------------- ------------- -----------
Net (Cash used) in operating activities (2,089) (3,240) (5,907)
Cash flows from/(used in) investing
activities
Purchases of financial investments - - (19,075)
Proceeds from sale of Financial investments 9,570 - -
Purchase of intangible exploration
assets (1,430) - (319)
Purchase of property, plant and equipment - (5) (6)
Proceeds from the sale of fixed assets 13 - 91
Dividends received from financial
investments 304 - 194
Interest received 1,013 657 1,262
---------------------------------------------- ------------- ------------- -----------
Net Cash from/(used in) investing
activities 9,470 652 (17,853)
---------------------------------------------- ------------- ------------- -----------
Cash flows from/(used in) financing
activities
Proceeds from issue of share capital - 619 1,069
Purchase of treasury shares - - -
---------------------------------------------- ------------- ------------- -----------
Net cash flows from financing activities - 619 1,069
Net increase/(decrease) in cash and
cash equivalents 7,381 (1,969) (22,691)
---------------------------------------------- ------------- ------------- -----------
Cash and cash equivalents at the beginning
of the period/year 62,734 85,307 85,307
Effect of exchange rates on cash and
cash equivalents 9 (31) 118
Net increase/(decrease) in cash and
cash equivalents 7,381 (1,969) (22,691)
---------------------------------------------- ------------- ------------- -----------
Cash and cash equivalents at the period/year
end 70,124 83,307 62,734
---------------------------------------------- ------------- ------------- -----------
GROUP STATEMENT OF CHANGES IN EQUITY
Foreign
Called-up exchange Other Retained Total
share capital Share Premium reserve reserves earnings equity
$000 $000 $000 $000 $000 $000
At 1 July 2017 56,186 861 (71,843) 4,730 311,511 301,445
Loss for the period - - - - (2,775) (2,775)
Other comprehensive income for
the period - - (700) - - (700)
Total comprehensive income for
the period - - (700) - (2,775) (3,475)
Proceeds from issue of share
capital 204 415 - - - 619
Share based payments - - - - - -
Transfer between reserves - - - - - -
At 31 December 2017 56,390 1,276 (72,543) 4,730 308,736 298,589
------------------------------------ --------------- ---------------- ---------- ---------- ---------- ---------
Loss for the year - - - - (4,267) (4,267)
Other comprehensive income for
the period - - 2,686 - - 2,686
------------------------------------ --------------- ---------------- ---------- ---------- ---------- ---------
Total comprehensive income for
the period - - 2,686 - (4,267) (1,581)
Proceeds from issue of share
capital 127 323 - - - 450
Share based payments - - - 167 - 167
Transfer between reserves - - - (3,821) 3,821 -
At 30 June 2018 56,517 1,599 (69,857) 1,076 308,290 297,625
------------------------------------ --------------- ---------------- ---------- ---------- ---------- ---------
Loss for the period - - - - (1,395) (1,395)
Other comprehensive income for - - - - - -
the period
------------------------------------ --------------- ---------------- ---------- ---------- ---------- ---------
Total comprehensive income for
the period - - - - (1,395) (1,395)
Proceeds from issue of share - - - - - -
capital
Share based payments - - - 85 - 85
Transfer between reserves - - - - - -
------------------------------------ --------------- ---------------- ---------- ---------- ---------- ---------
At 31 December 2018 56,517 1,599 (69,857) 1,161 306,895 296,315
------------------------------------ --------------- ---------------- ---------- ---------- ---------- ---------
NOTES TO THE INTERIM STATEMENTS
For the 6 months ended 31 December 2018
1. Accounting Policies
Basis of Preparation
This Interim Report has been prepared on a basis consistent with
the accounting policies applied to all the periods presented in
these consolidated financial statements.
Change in Functional Currency
Up to 31 December 2017, the Bowleven plc (The "Company")
operated using a functional currency of GB Pounds. Following the
completion of the Company's operations strategy review, a review of
the Company's accounting policies was undertaken. As a result of
the change in circumstances outlined below, the Company's
functional currency needed to be changed to US Dollars.
As an oil and gas investment holding company, the future
operations of the Company would have a very significant reduction
in the size and value of the Group's UK holding company activity.
Accordingly, expenditure in GBP has reduced significantly and the
importance of USD in respect of both balance sheet and profit and
loss account activities increased considerably. In addition, the
Company mainly holds or has investments in USD functional currency
businesses and no longer holds an appreciable amount of GBP
denominated assets and liabilities. The change in functional
currency was effective from 1 January 2018.
The functional currency of the Company's investments in
subsidiaries and JV are USD. The presentational currency of the
Group is USD.
The disclosed figures are not statutory accounts in terms of
section 435 of the Companies Act 2006. Statutory accounts for the
year ended 30 June 2018, on which the auditors gave an unqualified
opinion and no statements under section 498 (2) or (3), have been
filed with the Registrar of Companies.
2. Going Concern
The financial statements have been prepared on a going concern
basis as the Directors are of the opinion that the Group has
sufficient funds to meet their ongoing working capital and
committed capital expenditure requirements. In making this
assessment, the Directors considered the Group budgets, the cash
flow forecasts and associated risks.
3. Other Notes
a) The basic earnings per ordinary share is calculated on a loss
of $1,395,000 (H1 2018: loss of $2,775,000) on a weighted average
of 327,465,652 (H1 2018: 325,531,910) ordinary shares.
b) In respect of the 6 months to 31 December 2018, the diluted
earnings per share is calculated on a loss of $1,395,000 on
327,465,652 ordinary shares. The loss attributable to ordinary
shareholders and the number of ordinary shares for the purpose of
calculating the diluted earnings per share are identical to those
used for the basic earnings per share.
c) No dividend has been declared (2018: nil).
4. Electronic Shareholder Communication
As per the prior year Interim Results and recognising increased
automation in shareholder communications, the Group no longer
produces hard copy Interim Reports. The Annual Report will also be
distributed electronically unless shareholders specifically elect
to receive a hard copy. Copies can be obtained from the Company on
request.
5. Interim Report
This announcement represents the Interim Report and half yearly
results of Bowleven plc. The announcement will be available to
download from the Company website www.bowleven.com.
GLOSSARY
AGM annual general meeting
AIM the market of that name operated by the London
Stock Exchange
Board of Directors the Directors of the Company
boe barrels of oil equivalent
Bomono Permit the production sharing contract between the
Republic of Cameroon and EurOil Limited, 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
Companies Act 2006 the United Kingdom Companies Act 2006 (as amended)
('the Act')
Company Bowleven plc
contingent resources those quantities of hydrocarbons that are estimated
to be potentially recoverable from known accumulations,
but which are not currently considered to be
commercially recoverable
EBT employee benefit trust
Etinde Permit the Etinde Exploitation Authorisation (EA).
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. Currently SNH have exercised their
right to back into this licence, but this is
subject to completion
FID final investment decision
FLNG floating liquefied natural gas
G&A general and administration
GIIP Gas initially in place, the volume of gas in
a reservoir before production
Group the Company and its direct and indirect subsidiaries
H1, H2 etc. first half of the financial year, second half
of the financial year etc.
IFRS International Financial Reporting Standards
km(2) square kilometres
LNG liquefied natural gas
mmboe million barrels of oil equivalent
NewAge NewAge (African Global Energy) Limited, a privately
owned oil and gas company
ordinary shares ordinary shares of 10p each in the capital
of the Company
PEA provisional exploitation authorisation
PSC production sharing contract
P50 50% probability that volumes will be equal
to or greater than stated volumes
P90 90% probability that volumes will be equal
to or greater than stated volumes
Q1, Q2 etc. first quarter, second quarter etc.
SNH Société Nationale des Hydrocarbures,
the national oil and gas company of the Republic
of Cameroon
tcf trillion cubic feet
US United States of America
$ or US Dollars United States of America Dollars
GBP or GB Pounds Great Britain Pounds Sterling
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London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR GMGZFNRNGLZM
(END) Dow Jones Newswires
March 29, 2019 03:00 ET (07:00 GMT)
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