Petroleum Africa
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Monday, March 30, 2020
Bowleven, the Africa focused oil and gas exploration Group traded on AIM, announced its unaudited interim results for the six months ended 31 December 2019 and provided an update on operations in Cameroon.
HIGHLIGHTS
Continued progress on Etinde development options and working with joint venture (‘JV’) partners towards agreeing Final Investment Decision (‘FID’) in late 2020
Lead contractor appointed to manage the Front End Engineering Design (‘FEED’) process
TechnipFMC are expected to commence project activity in early April, with a planned duration of five to eight months
Letter of Intent (‘LOI’) signed between Victoria Oil & Gas and New Age (African Global Energy), for the supply of gas from the Etinde Field, offshore Cameroon
Ongoing market volatility, caused by the COVID-19 global pandemic and the recent fall in global oil prices could potentially have an adverse effect on the Etinde project timeline
Operational
Etinde
The JV partners are proceeding with:
FEED related processes
Continuing commercial activities focused around a liquids-based development alongside discussion of sales terms with potential gas, condensate and Liquefied Petroleum Gas (“LPG”) off-takers
Preparatory steps for raising development finance, potentially on a jointly funded basis, to implement the Etinde development project
Reprocessing seismic data relating to the IE/ID/IB/IC areas of Etinde
Bomono
Discussions with the Government of Cameroon and Societe Nationale des Hydrocarbures (‘SNH’) to finalise the closing position and return the licence to the State are ongoing
Corporate
Group cash balance at 31 December 2019 was circa $10.9 million with a further $2.3 million held in financial investments with no debt and material financial commitments
A bank guarantee relating to the deposit of $0.5 million is due to end shortly and we expect this amount will be added to our free cash resources shortly
Bowleven considers the value of cash and investment of $13.7 million to be sufficient to meet the Group’s financial requirements until FID on Etinde is reached
The loss for the six-month period was $1.4 million compared to $1.4 million in the equivalent period last year
Eli Chahin, Chief Executive Officer of Bowleven, said: “During the period, we were pleased with the progress made towards achieving FID at Etinde. We advanced a number of important project related work streams, including appointing a lead FEED contractor, assessing commercial arrangements for the produced condensate and gas, and reviewing potential financing options for the project.
“At a time of considerable market turbulence, we are fortunate to benefit from a robust financial position, with in excess of $10 million of cash on the balance sheet and no debt. Coupled with our low-cost base, we are well funded to reach FID, after which we will receive $25 million from the JV partners.
“Despite the solid progress Bowleven has been making, recent macro conditions have the potential to impact the timing of the Etinde project. As a business, we will continue to work towards achieving FID before year-end and we look forward to keeping all of our stakeholders appraised on progress over the coming months.”
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