The Africa centered gas and oil exploration company, AIM-listed Bowleven, released the following update on the company’s recent activities in Etinde and Bomono.
Etinde Permit (with NewAge as operator)
After a just concluded OCM (Operating Committee Meeting), Etinde and government of Cameroon joint venture are to organize a technical workshop to tackle development alternatives for Etinde.
This workshop aims to identify the preferable development resolutions for all entities with interests.
The development resolutions may include gas-to-power, FLNG, and other doable resolutions.
Consequently, at the just concluded OCM, a new possible smart option was presented which involves the production of gas and related liquids using existing facilities at Equatorial Guinea.
Etinde has enough existing open resources to sustain one preliminary off take resolution.
Also, appraisal drilling is aiming un-risked P90 steady volumes of up to 2 tcf of gas and related liquids. If the drilling is a success, it will create a capacity for numerous off take resolutions for Etinde.
The moment of appraisal drilling will somewhat be driven after proceeding with initiated development scheme.
As highlighted before, Bowleven remains enthusiastic to promote development actions and to drill the appraisal at the soonest possible time.
Bomono Permit (with Bowleven as operator)
After a SOCM (Special Operating Committee Meeting between Bowleven (the Contractor) and Cameroon State, official resolutions affirming the State’s assistance for the grant of an additional 2 years to the Bomono Exploration license (until December 12, 2018) and a Provisional Exploitation Authorisation (PEA) have been executed and signed.
Ministerial sanction for the extension of license has been received and as set by the Cameroon authorities, process for the PEA approval will now proceed.
The PEA, granted under the structure of the exploration license, provides the right to promote commercialization and development actions on Bomono. This will enable the forecasted sale of gas to both the power generation and domestic gas market.
In connection with these approval procedures, parties concerned are in advanced talks on the possible farm-out of the Bomono license to make possible early cashflows and more appraisal activities.
Any assigning to a third party will require the proper regulatory approvals.
In agreement with the Group’s tactics, the dynamic screening of new business opportunities that contain immediate production with infrastructure-led and upside exploration is now underway.
Over fifty potential corporate or asset transactions were screened and evaluated by the company in 2016. The process of getting details was undertaken on several opportunities due to diligent efforts.
At the end of 2016, the Group’s cash balance was about $95 million without any debt and pending work program commitments.
The company continues to concentrate on decreasing G&A disbursement while making sure that a team to optimize execution is maintained.
In 2016, the Company was able to achieve a 23% decrease in administrative expenditures.
Before the year ends, additional cost savings have been installed through salary reductions, redundancies and other schemes.
Bowleven maintained focus on capital restraint and make sure that cash is available to promote progression of the Group’s current asset base and specifically for the development of Etinde.
On hand cash balances together with the $40 million net intended for the drilling and testing of two appraisal wells and the acknowledgment of additional $25 million in cash at Etinde FID under the specifications of the Etinde farm-out transactions, promises balance sheet stability and monetary flexibility is preserved in an exigent macro-environment for the trade
Chief Executive Kevin Hart’s Statement
“2017 is a foremost year for the Company as we eye on executing our identified strategy for the welfare of all our shareholders. Progress is being created on our whole asset base in Cameroon and in the dynamic screening of new prospects. The Company’s healthy balance sheet status enables it to move ahead from a position of power.”