LONDON--Oil and gas explorer Bowleven PLC (BLVN.LN) Tuesday said
it received $165 million after completing the farm-out of the
Etinde permit in Cameroon.
The farm-out transaction saw Bowleven sell 30% and 10% stakes in
the permit to Lukoil Holdings and NewAge (African Global Energy)
Ltd. respectively in return for a total consideration of around
$250 million.
In addition to initial cash proceeds of $165 million, Bowleven
will receive an estimated $5 million cash for working capital; up
to $40 million carry for two Etinde appraisal wells, including
testing; $15 million cash when appraisal drilling is complete; and
$25 million cash, depending on a final investment decision for the
project.
"The resulting consideration of cash and carry, together with
the expanded and strengthened joint venture, will enable the
progression of appraisal and development activities on Etinde,"
said CEO Kevin Hart.
"Planning for the appraisal drilling on the Intra Isongo is
already underway with locations for the two wells nearing
finalization. With a carry in place to cover our share of drilling
and testing we are looking forward to appraising this exciting
reservoir interval."
Shares at 0848 GMT traded a penny or 3.2% higher at 32
pence.
Write to Ed Ballard at ed.ballard@wsj.com
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