Petroleum Africa
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Tuesday, July 1, 2014
Bowleven entered into a conditional drill-to-earn arrangement with privately held Africa Fortesa Corp Ltd. (AFC) and its affiliate, subject to approval by the Cameroonian government. In return for drilling two exploration wells at cost on the Bomono Permit, AFC will earn a 20% interest in the Bomono Permit. Based on the terms of the arrangement the budgeted cost of the two-well program (excluding testing) net to Bowleven is estimated to be approximately $13-$15 million.
Drilling is envisaged to commence prior to the end of 2014.
Bowleven, at the outset of the farm-down process, was looking to farm out at least a 40% stake, so in addition to the AFC agreement the company would be willing to sell off at least another 20% to interested parties in return for a contribution of up to $15 million towards the peripheral costs of drilling the wells (including casing, logging and potential testing), before the first of two wells are scheduled to spud before the end of 2014. As Bowleven is not asking for any contribution to past costs, this deal is near ground floor.
While discussions with various other parties already in the data room continue, the availability of all the key data on the Bonomo project in an online data room means it would be quick for newly interested parties to review this opportunity now that the countdown to drilling the obligation wells at the end of this year has started, according to Envoi who is marketing the opportunity for Bowleven.
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