29th Mar 2019 10:54
LONDON (Alliance News) - BowLeven PLC is to keep moving towards an investment decision on its Etinde joint venture, it said on Friday, as it analyses drilling results.
BowLeven owns the Etinde and Bomono permits, both located in Cameroon. It owns 25% of offshore Etinde, and 100% of onshore Bomono.
During 2018, the company made new discoveries at Etinde during drilling, with operations currently focused on analysis data collected and carrying out engineering designs for various development options.
A decision is due on Etinde in late 2019 or early 2020.
On Bomono, BowLeven is in talks with the Cameroonian government over the licence's future after it expired at the end of 2018.
For the six months to December, BowLeven's pretax loss halved to USD1.4 million, with no revenue being booked due to having no producing assets.
BowLeven had USD70.1 million cash at the end of December, though after paying a USD48.5 million special dividend since then it now has USD6.9 million in cash. It is fully funded through to a decision on Etinde.
"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 one trillion cubic feet of wet gas in place," said Chief Executive Eli Chahin.
"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."
Shares were down 5.6% on Friday morning at a price of 12.72 pence each.
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