Bowleven pressing on with Cameroon progress

Bowleven, the Edinburgh-based oil and gas exploration group, concentrating on Africa, has completed its Etinde farm out in Cameroon with $250m from the transactions.

The firm received initial cash proceeds from LUKOIL/New Age of $165 million received on March 16, 2015, and up to $40 million will be carried over for two Etinde appraisal wells.

While the operator of Etinde is transferred to NewAge, Bowleven retains a 20% non-operated interest. Cameroon has exercised 20% back-in right on Etinde development.

Key objectives for the next 12 months include working alongside expanded Etinde joint venture and completing the forthcoming two well exploration programme on Bomono, and securing an extension to the initial exploration phase on Kenya block 11B.

Kevin Hart, chief executive of Bowleven plc, said, "Following completion of the Etinde farm-out we are well positioned, with a strong financial foundation, to take the business forward. The Group is looking forward to participating in four potentially significant exploration and appraisal wells over the next 12 to 18 months.

Our near-term focus is to commence drilling on Bomono and work alongside our partners on Etinde to advance appraisal and development plans. The key driver of both campaigns is the conversion of resources into reserves to further monetise the significant potential of our Cameroon acreage.

In this challenging environment for E&P companies we remain determined to exercise capital discipline and maintain our balance sheet strength.