30th Jan 2015 09:39
LONDON (Alliance News) - Oil and gas explorer Bowleven PLC Friday said it has now received the Presidential decree approving the transfer of assets as part of its farm-out deal at the Etinde oil and gas permit in Cameroon.
It now only needs the decree to appear in the gazette for the deal to be completed and the transaction proceeds to be transferred.
In October, Bowleven said the Cameroon government had approved the assignment of equity interests in Etinde to Russian oil company OAO Lukoil and NewAge.
Under the deal, Bowleven's interest in the Etinde permit will drop to to 25% from 75%, with Lukoil taking a 37.5% interest and NewAge an additional 12.5% stake, bringing its holding to 37.5% also. Bowleven is set to be paid USD170 million when the deal completes, another USD40 million when the final investment decision for Etinde is made and appraisal drilling completed, and another USD40 million to cover what Bowleven would have paid for two appraisal wells now being covered by the buyers.
As a result of the deal, NewAge's subsidiary Camop will become the operator, allowing BowLeven to focus on its exploration plans in Cameroon, Kenya and Zambia.
Bowleven shares were up 7.9% at 27.75 pence Friday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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