27th Oct 2014 09:56
LONDON (Alliance News) - Africa-focused oil and gas company Bowleven PLC on Monday said it has received approval for the farm-out of equity interests in the Etinde prospect from the Cameroon government and said it has signed a contract for a two-well exploration programme at Bomono, also in Cameroon.
Bowleven said the Cameroon government has approved the assignment of equity interests in Etinde to the nominated affiliates of Russian oil company OAO Lukoil and NewAge (African Global Energy) Ltd.
The company said it is now only awaiting the approval of the Cameroon president's office for the transaction. It said it would be paid USD170 million upon completion of the transaction.
Pending the completion of the deal, the company said it has secured a USD30 million short-term bridge facility from Australia's Macquarie Bank in order to provide financial flexibility as it awaits the deal's completion.
Along with the farm-out, the partners on the Etinde project are planning a drilling programme to appraise the potential value of the Intra Isongo interval, intersected on the site in 2013.
Bowleven's anticipated share of the programme is funded by a USD40 million net carry from the farm-out deal.
Elsewhere, the company said it has signed a rig contract with African Onshore Drilling LDC for a two-well exploration programme at the onshore Bomono site in Cameroon.
"As a consequence of the above transactions, we are ideally positioned to progress our assets and look forward to participating in two potentially high impact drilling campaigns within the next 12 months," said Bowleven Chief Executive Kevin Hart.
Bowleven shares were down 3.1% on Monday morning to 31.25 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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