Bowleven, Lukoil and NewAge repel the transaction on Etinde

The conclusion of the transaction on the farm in the Etinde permit, three offshore blocks covering 2316 km2, has been postponed to February 28, 2015.

This extension is as a result of a second longstop date of extension agreed by stakeholders, including Lukoil and NewAge, who must take respectively 37.5% and 12.5% in the permit, announced Bowleven Plc on December 23.

According to the petro-gas group based in Edinburgh, the transaction with Lukoil and NewAge is in its last phase and the presidential decree to this effect could take place around December 31.

Upon completion of this transaction for a total consideration of 250 million $, Bowleven will increase from 75% to 25% on the Etinde permit, while NewAge will culminate in 37.5% interest to become operator of the permit, via its subsidiary Camop.

Furthermore, Bowleven has brought an application for renewal of the production sharing contract which happened to expire on 22 December for MLHP-5 blocks and MLHP-6 of the Etinde permit. Last July, the petro-gas won the licensing of gas for an initial period of 20 years on MLHP-7, the third block 461 km2 in Etinde permit.