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Bowleven - Preliminary Results Announcement

Bowleven, the Africa focused oil and gas exploration group traded on AIM, today announces its preliminary results for the year ended 30 June 2019.


HIGHLIGHTS


Operational


Etinde, offshore Cameroon


-    Ongoing operator evaluation of development options, with particular focus on the facilities necessary to undertake all aspects of the development.


-    Extensive pre-Front End Engineering and Design (FEED) studies performed by several external engineering consultancies and equipment providers.


-    Investment in completing the analysis of the data and samples collected for the two 2018 appraisal wells, which was followed up by a large scale exercise to remap and reassess each of the fields currently discovered in the Etinde licence area. Particular focus has been placed on re-evaluating the IE field, which has resulted in a much clearer understanding of the importance of existing discoveries and the prospectivity of the nearby undrilled prospects.


-    The JV partners have undertaken an independent Competent Persons report on the contingent resources of the Etinde licence area. The final report shows that the overall 'in place' contingent resources of the Etinde licence area are largely unchanged from Bowleven's 2015 assessment. Recovery rates have been reassessed in light of current development options reducing the overall 2C contingent resources available for production to 244 million boe from 290 million boe on a 100 % basis.


Bomono, onshore Cameroon


-    The licence terminated in December 2018. However, the Company currently await the Government's formal notification of the licence removal.


Financial


-      The financial valuation of the Etinde asset has been assessed during the latter part of the year based on development plans proposed by the Operator and the revised assessment of the project's contingent resources.


-      We have paid close attention to the risks and uncertainties associated with the pre-financial investment decision (FID) status of the project.


-      The valuation has been determined to be within a range, with a mid-point of $150 million, resulting in an impairment provision of $62 million against the Group's carrying value of Etinde.


Corporate


-     Decision to make payment to shareholders equivalent of 15 pence per ordinary share.


-     Group cash balance at 30 June 2019 of $11 million with no debt. No outstanding work programme commitments.


-     Investment of $4 million in publicly traded limited partnership interests and debt.


-     Under the Etinde transaction, access to $25 million at FID.


-     Ongoing control over general and administration (G&A) cost.


Outlook


Key objectives are to deliver on our revised strategy in FY2020 which includes:


-     Working with our partners on Etinde development options with the aim of Etinde project FID in FY2020, having due consideration of the risk of the Etinde licence potentially expiring in January 2021.


-     Disciplined capital management to secure progress towards FID and thereafter explore funding options regarding development capex.


Eli Chahin, Chief Executive Officer of Bowleven plc, said:


"Our focus in 2020 will be to work with all of our stakeholders to ensure FID is underpinned by a compelling development plan, which is suitably robust to secure future capex funding during the financial year. This combined with a disciplined approach to capital, management will ensure that we are able to deliver maximum value for our shareholders."

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