21st Mar 2005 07:01
BowLeven Plc21 March 2005 21 March 2005 BowLeven plc ("BowLeven" or "the Company") Interim results for the half-year ended 31 December 2004 BowLeven, the African oil and gas exploration and development group withoperations currently in Cameroon in West Africa, announces its maiden interimresults. Highlights • Acquisition and processing of 575 sq km of 3D seismic data over block MLHP-7,• Acquisition of 206 sq km of 3D seismic over blocks MLHP-5 and MLHP-6,• Seeking a rig to drill two wells in Summer 2005,• Started discussions for gas to electricity ("GTE"). Terry Heneaghan, the Chairman, commented: "We are working very hard to ensure that we take advantage of all theopportunities for oil and gas exploration and development that we haveidentified within our Cameroon asset base. Progress is being made on all frontsand 2005 should be an exciting time for BowLeven and its shareholders." For further information, please contact: BowLeven plc 0131 260 5100Terry Heneaghan, Executive Chairman Noble & Company Limited 0131 225 9677Joe Philipsz Maitland 0207 379 5151Neil BennettLiz Morley Notes to editors BowLeven is an independent oil and gas company, which has a 100 per cent.interest in an exploration permit, Etinde Permit covering three contiguousblocks MHLP-5, 6 and 7, in the shallow waters offshore Cameroon, West Africa.The acreage, which has had 9 wells drilled in it, contains P50 hydrocarbonreserves and contingent resources as well as attractive exploration potential.The company has operated in Cameroon since 1999. CHAIRMAN'S STATEMENT Since the listing of the Company's shares on the Alternative Investment Market,the directors of the Company have been active in the following areas: - acquisition and processing of 575 sq km of 3D seismic data over block MLHP-7, - acquisition of 206 sq km of 3D seismic over blocks MLHP-5 and MLHP-6, - search for rig to start drilling in Summer 2005, - initiation of discussions for gas to electricity ("GTE"). 3D Seismic The quality of the new 3D seismic data in the Etinde Permit area, which wasacquired in January by Western Geco, is excellent. The data is being processedby Veritas and the "fast track" results should be ready around the beginning ofApril 2005. Full data processing and interpretation should be finalised in earlysummer. We are very encouraged by the preliminary interpretation and several newstructures are being identified. The 3D seismic has identified several potential drilling prospects, leads andplays in block MLHP-7 and these will be ranked in terms of risk and potentialreward. Initially, we plan to select two well locations in known hydrocarbonbearing structures that will offer the potential to be gas/condensate tests inthe Isongo sands and/or oil tests in the Biafra sands. We are most pleased withthe progress to date. Although 206 sq km of 3D seismic data has been acquired over blocks MLHP-5 andMLHP-6, the area covered only represents around 12% of the area of these blocks.The water depth in the remainder of the blocks is shallow (0 - 25 metres) and isnot deep enough for most seismic vessels. However, vessels that can undertakethe work have been identified and your directors are considering the optionsavailable to acquire additional 3D seismic in this shallow water, including thelarge Souellaba feature. Drilling We are evaluating rig options to begin drilling by the end of summer 2005.Subject to the results of the first well, we will either drill a secondappraisal well into the same structures or will move to another location to testother potential reservoirs. Sanaga Sud Discussions are continuing with the Government of Cameroon with regard to BlockMLHP-4, which contains the Sanaga Sud gas field. When these discussions arefinalised, a further announcement will be made. GTE Business Plan We have appointed The Energy Contract Company Limited ("ECC") to negotiate andconclude the full range of commercial agreements relating to the GTE business,including those with the government of Cameroon. ECC is a specialist gasconsultancy firm with considerable expertise in gas and power contractnegotiations. The process has begun and we expect contracts to be concludedwithin six to nine months. Financial The Group recorded a loss of £1.5 million for the six months ended 31st December2004. The main contributor to the loss was interest payable and similar chargesof approximately £1.3 million, which relates to the premiums payable on theredemption and conversion of debentures and other loans. The balance sheet was considerably strengthened by the equity funds raisedduring the period. At 31st December 2004, net cash was approximately £25.8million. Board Appointment We are delighted to have recruited Peter Wilson as Commercial Director of theCompany with effect from 1st April 2005. Peter (age 41) was a corporate partnerat McClure Naismith (the Company's solicitors) and had been advising theBowLeven Group on general corporate and contractual issues for several years. Hehas considerable experience of oil and gas commercial matters and will also takeon the responsibilities of General Counsel and Company Secretary. Furtherdetails on the appointment of Peter under Schedule 2(f) of the AiM Rules will bereleased on 1st April 2005. An active search for experienced non-executive directors is underway, with theobjectives of strengthening the Board and complementing the experience of theexecutive directors. Outlook The directors are moving forward as quickly as possible with the Company'sbusiness plan and are confident that this plan is on track. The next few monthsshould be an exciting time for the Company and its shareholders. T A HeneaghanChairman BowLeven plc Interim Report to 31 December 2004 GROUP PROFIT AND LOSS ACCOUNT Six months ended Year ended 31 December 30 June 2004 2004 £'000 £'000 Turnover - -Administrative expenses (303) (589) ------ ------Operating loss (303) (589)Interest receivable and similar income 78 7Interest payable and similar charges (1,227) (2,185) ------ ------ Loss on ordinary activities before taxation (1,502) (2,767)Taxation - - ------ ------Loss on ordinary activities after taxation (1,502) (2,767)Accumulated deficit brought forward (3,940) (1,173) ------ ------Accumulated deficit carried forward (5,442) (3,940) There are no recognised gains or losses other than those included in the profitand loss account. GROUP BALANCE SHEET At 31 December At 30 June 2004 2004 £'000 £'000Fixed assetsIntangible assets 8,784 7,447 ------ ------Current assetsStock 238 238Debtors 1,071 69Cash at bank 25,763 162 ------ ----- 27,072 469Creditors: amounts falling due within one year (2,533) (7,755) ------ ------Net current assets /(liabilities) 24,539 (7,286) ------ ------Total assets less current liabilities 33,323 161 ------ ------Capital and reservesCalled up share capital 2,111 1,030Share premium 33,771 188Other reserves 2,883 2,883Profit and loss account (5,442) (3,940) ------ ------Equity shareholders' funds 33,323 161 GROUP CASH FLOW STATEMENT Six months ended Year ended 31 December 30 June 2004 2004 £'000 £'000 Net cash flow from operating activities (1,227) (176)Returns on investments and servicing of finance (1,193) (5)Capital expenditure and financial investment (1,961) (2,168) ------ ------Cash outflow before financing (4,381) (2,349)FinancingProceeds of share issues 34,926 150Redemption of loan instruments (7,045) (12)Advance of loan instruments 2,100 2,359 ------ ------Net cash flow from financing 29,981 2,497 ------ ------Increase in cash in the period 25,600 148 ------ ------Reconciliation of net cash flow to movementin net funds/ (debt)Increase in cash in period 25,600 148Net cash outflow/(inflow) from loan instruments 4,945 (2,347)Net non cash movement in loan instruments - (2,122) ------ ------Movement in funds/(debt) in period 30,545 (4,321)Opening net funds/(debt) (4,782) (461) ------ ------Closing net funds /(debt) 25,763 (4,782) NOTES FORMING PART OF THE INTERIM RESULTS 1. Basis of preparationThe financial information contained herein does not constitute statutoryaccounts within the meaning of Section 240 of the Companies Act 1985. Theunaudited interim financial information has been prepared on the basis of theaccounting policies set out in the Group's accounts for the year ended 30 June2004. The figures for the year ended 30 June 2004 have been extracted from theaccounts. Those accounts have been filed with the Registrar of Companies andcontained an unqualified auditor's report. 2. Comparative figuresAs this is the first Interim Report following the admission of the Company toAim, no comparative figures for the six months ended 31 December 2003 areavailable. 3. Reconciliation of movement in shareholders' funds Six months ended 31 December 2004 £'000Loss for the year (1,502)New shares issued 1,081Premium on new share capital subscribed 33,583Opening equity shareholders' funds 161 ------Closing equity shareholders' funds 33,323 ------ 4. Interest payable and similar chargesInterest payable and similar charges of £1,277,000 during the six month periodto 31 December 2004 primarily relates to the premium payable on the redemptionand conversion of debentures and other loans. 5. Interim reportThis document represents the Interim Report and half yearly results of BowLevenplc. Copies of the Interim Report will be sent to shareholders and can beobtained, free of charge, from the Company at 68-70 George Street, Edinburgh,EH2 2LT for a period of one month. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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