Bowleven Gets $15 Million as Part of Etinde Farm-out Agreement
October 03 2016 - 3:41AM
Dow Jones News
By Alex MacDonald
LONDON--Bowleven PLC(BLVN.LN), the Africa-focused oil and gas
explorer, said Monday it has received $15 million from Lukoil PJSC
(LUKOY) and NewAge (African Global Energy) Ltd. as part of a deal
entered into last year to fund the development of the offshore
Etinde gas field in Cameroon.
Bowleven agreed in March 2015 to sell 30% and 10% stakes in
Etinde to Lukoil and NewAge respectively, in return for $250
million, thus reducing Bowleven's stake in the field to 20%.
Bowleven received an initial $165 million up front for the deal
and up to $40 million in expenses covered to carry out the drilling
of two appraisal wells on the site. Bowleven was then entitled to
receive a further $15 million upon the completion of appraisal
drilling and is still entitled to another $25 million once the
final go-ahead is given to develop the project into a commercially
viable operations.
As part of the deal, Bowleven transferred operatorship of the
project to Newage.
Bowleven shares were up 4% at 26 pence a share in morning trade
in London, resulting in a market capitalization of GBP85 million
($109 million).
-Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
October 03, 2016 03:26 ET (07:26 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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