A petition for the removal of Kevin Hart, chief executive of Bowleven and five other board members is being instigated by a rebel investor. The gas and oil company is also being accused of noteworthy shareholder value demolition.
The Crown Ocean Capital P1 investment firm declared that the oil company, an Edinburgh based company, has utilized over $500 million cash, and compensated its directors for about $44million, in the past ten years only to learn its share price went down by 90 percent.
It was stated that there was an undeniable need to revolutionize the board of Bowleven to instigate a change to the strategy it is using that may result to the company’s insolvency and leave nothing for the shareholders.
But, Bowleven stroked back by saying that deceptive and tarnished information are being circulated by Crown Ocean Capital P1 in its pronouncements.
Crown Ocean Capital P1 led by investors Konstantin Stoyanov and Christian Petersmann owns over ten percent of Bowleven’s shares of stocks.
It is said in a statement that the continuing expenditure and current cash outflows at Bowleven are very disturbing. Some investors perceive that shareholders are open to the elements of material risk that Bowleven will dispose its outstanding cash of c$97 million (£78m) and annihilate remaining value. The proof of shareholder value demolition is apparent.
An appeal for a general meeting was sent by Crown Ocean Capital to Aim-listed Bowleven at which Crown wishes to submit a resolution for the ousted of six members of the present board, maintaining in position chief operating officer David Clarkson only.
Crown wants to have financial restructure expert Eli Chahin and corporate lawyer Chris Ashworth sit on the board to assist in formulating and executing a different tactic which is for the best benefit of all shareholders.
After its failed attempt in November to replace three non-executive directors of Bowleven, Crown Ocean Capital is coming back with a scorching attack on the gas company, which has encountered challenges in establishing a growth tactic focused on Cameroon.
Shortly before the crude price hike in 2014, Bowleven was able to raise $250 million by selling ventures in the offshore Etinde permit off Cameroon to New Age and Russia’s Lukoil in Cameroon.
But, Bowleven in November declared that progress in Cameroon has been exasperatingly slow. The decrease in the oil price since 2014 made it more difficult to obtain the agreement of partners to promote work on projects.
Bowleven maintains 20 percent holdings in the offshore Etinde permit, which carry finds Bowleven aspires to turn into production. However, it is operated by New Age. The firm has made finds onshore through the Bomono permit.
Crown Ocean Capital stated that they do not accept that the Board in its present slate is fitted to undertake the required tactical review or consequent needed actions.
The financial firm makes it clear that they are questioning the Board’s approach because Bowleven persists to acquire costs on Bomono despite the about $100 million expenditures on the field without any form of evidence to show economic potentials.
The Board is still spending expensively despite Bowleven’s most profitable asset is a 20 percent share in Etinde for which Bowleven given up the significant operator task, added Crown Ocean Capital.