Bowleven plc LOI signed for supply of gas from Etinde (9713B)
February 05 2020 - 1:13AM
UK Regulatory
TIDMBLVN
RNS Number : 9713B
Bowleven plc
05 February 2020
5 February 2020
Bowleven plc
('Bowleven' or 'The Company')
Letter of Intent signed for supply of gas from Etinde, offshore
Cameroon
Bowleven, the Africa focused oil and gas exploration group
traded on AIM, is pleased to confirm the signature of a non-binding
Letter of Intent ("LOI") between Victoria Oil & Gas Plc
(AIM:VOG) and New Age Ltd ("New Age"), for the supply of gas from
the Etinde Field, offshore Cameroon.
Under the terms of the LOI, VOG and New Age will seek to enter
into a gas supply agreement ("GSA"). The LOI envisages that New Age
will supply processed Gas to Gaz du Cameroun S.A. ("GDC"), a wholly
owned subsidiary of Victoria Oil & Gas Plc, at Limbe. GDC would
then transport the gas to Douala.
The LOI anticipates that the GSA would be for a period of 20
years and would see New Age supply a minimum of 25mmscf per day of
gas to GDC for the first three years, increasing to a minimum of
30mmscf per day. The LOI remains in force until the earlier of the
signature of a GSA or 31 March 2021. Ultimately, finalisation of
the proposed GSA terms and conditions is directly linked to the
Final Investment Decision ("FID") in relation to the Etinde field
development project.
Eli Chahin, Chief Executive Officer of Bowleven plc, said:
"As we work towards making a final investment decision on Etinde
this year, today's announcement by VOG is a positive step towards
reconfirming the commerciality of the licence. The agreement is
also positive for Cameroon, as it will see gas delivered to
independent power suppliers in the country, and for our
stakeholders, as it demonstrates the high demand for natural gas in
the region. We look forward to updating the market on future
progress as appropriate."
ENQUIRIES
For further information, please contact:
Bowleven plc
Eli Chahin, Chief Executive 00 44 203 327 0150
Celicourt Communications Ltd
Mark Antelme 00 44 208 434 2643
Jimmy Lea
Shore Capital & Corporate Ltd (NOMAD)
Shore Capital Stockbrokers Ltd (Broker)
Robert Finlay 00 44 207 408 4090
Antonio Bossi
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END
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