Bowleven plc (‘Bowleven’ or ‘the Group’ or ‘the Company’)
Bowleven, the Africa focused oil and gas exploration Group traded on AIM, today announces its unaudited interim results for the six months ended 31 December 2018.
· Loss for the 6 month period was $1.4 million compared to $2.8 million in the equivalent period last year
· Special dividend of £0.15 per share declared on 7 January 2019, equivalent to £48.5 million, paid in full on 8 February 2019
· Ongoing data analysis following the completion of the 2018 two well appraisal drilling programme continues
· Field development plans for an Isongo Marine (“IM”) focused development and update of the volumetric Resource held in the licence area expected to be formalized later in the year
· Focus on Etinde development options and working with joint venture (“JV”) partners with aim of agreeing Final Investment Decision (“FID”) during late 2019 or early 2020
· G&A further reduced to $2.1 million (H1 2018: $3.6 million)
· 2018 appraisal drilling programme made new discoveries and further improved understanding of the reservoir. Analysing and interpreting the impact of the data collected is ongoing
· The JV partners are proceeding with:
o Technical analysis of the data collected from the 2018 appraisal drilling programme to validate the IM and Isongo E (“IE”) field development plans and the Etinde resource volumetric update
o Engineering design studies to assess the engineering and commercial feasibility of all available development options. The JV partners expect to discuss and agree our preferred development solution(s) in the near future
o Commercial analysis of all available development options focused around a liquids-based development alongside discussion of sales terms with potential gas off-takers
· Etinde FID decision expected in late 2019 or early 2020
· The licence term ended on 12 December 2018. Discussions are ongoing with the Government of Cameroon and Société Nationale des Hydrocarbures (“SNH”) regarding the future of the licence. The Company will update as appropriate
· Group cash balance at 31 December 2018 was circa $70.1 million (excluding $0.5 million held on deposit in respect of a guarantee) with a further $8.7 million held in financial investments, with no debt and material financial commitments. Following the payment of the special dividend, the cash balance has reduced to $6.9 million at the end of February 2019. Bowleven considers this sufficient to meet the Group’s financial requirements until FID on Etinde
· The loss for the 6 month period was $1.4 million compared to $2.8 million in the equivalent period last year
Eli Chahin, Chief Executive Officer of Bowleven plc, said:
“The 2018 appraisal drilling programme further strengthened our understanding of Etinde and has been vital in progressing our thinking on the development of this significant asset with proven and probable resource of 1 TCF of wet gas in place.
We continue to move towards selecting a development plan with our JV partners which we expect to culminate in a Final Investment Decision in the coming months, an important value accretive point for the Company.
The Board was pleased to be able to return a significant amount of cash to shareholders in the financial year creating an important liquidity event for our investors, whilst ensuring the Company retained the financial flexibility to reach FID on the Etinde project.”