TIDMBLVN
RNS Number : 7690H
Bowleven plc
27 March 2020
27 March 2020
Bowleven plc
('Bowleven' or 'the Group' or 'the Company')
Interim Results
Bowleven, the Africa focused oil and gas exploration Group
traded on AIM, today announces its unaudited interim results for
the six months ended 31 December 2019.
HIGHLIGHTS
-- Continued progress on Etinde development options and working
with joint venture ("JV") partners towards agreeing Final
Investment Decision ("FID") in late 2020
-- Lead contractor appointed to manage the Front End Engineering Design ("FEED") process
-- TechnipFMC are expected to commence project activity in early
April, with a planned duration of five to eight months
-- Letter of Intent ("LOI") signed between Victoria Oil &
Gas Plc (AIM: VOG) and New Age (African Global Energy) Ltd ("New
Age"), for the supply of gas from the Etinde Field, offshore
Cameroon
-- Ongoing market volatility, caused by the COVID-19 global
pandemic and the recent fall in global oil prices could potentially
have an adverse effect on the Etinde project timeline
Operational
Etinde
-- The JV partners are proceeding with:
o FEED related processes
o Continuing commercial activities focused around a
liquids-based development alongside discussion of sales terms with
potential gas, condensate and Liquefied Petroleum Gas ("LPG")
off-takers
o Preparatory steps for raising development finance, potentially
on a jointly funded basis, to implement the Etinde development
project
-- Reprocessing seismic data relating to the IE/ID/IB/IC areas of Etinde
Bomono
-- Discussions with the Government of Cameroon and Société
Nationale des Hydrocarbures ("SNH") to finalise the closing
position and return the licence to the State are ongoing
Corporate
-- Group cash balance at 31 December 2019 was circa $10.9
million with a further $2.3 million held in financial investments
with no debt and material financial commitments
-- A bank guarantee relating to the deposit of $0.5 million is
due to end shortly and we expect this amount will be added to our
free cash resources shortly
-- Bowleven considers the value of cash and investment of $13.7
million to be sufficient to meet the Group's financial requirements
until FID on Etinde is reached
-- The loss for the six month period was $1.4 million compared
to $1.4 million in the equivalent period last year
Eli Chahin, Chief Executive Officer of Bowleven plc, said:
"During the period, we were pleased with the progress made
towards achieving FID at Etinde. We advanced a number of important
project related work streams, including; appointing a lead FEED
contractor, assessing commercial arrangements for the produced
condensate and gas, and reviewing potential financing options for
the project.
At a time of considerable market turbulence, we are fortunate to
benefit from a robust financial position, with in excess of $10
million of cash on the balance sheet and no debt. Coupled with our
low cost base, we are well funded to reach FID, after which we will
receive $25 million from the JV partners.
Despite the solid progress Bowleven has been making, recent
macro conditions have the potential to impact the timing of the
Etinde project. As a business, we will continue to work towards
achieving FID before year-end and we look forward to keeping all of
our stakeholders appraised on progress over the coming months."
ENQUIRIES
For further information, please contact:
Bowleven plc
Eli Chahin, Chief Executive 00 44 203 327 0150
Celicourt Communications Ltd
Mark Antelme 00 44 208434 2643
Jimmy Lea
Shore Capital (NOMAD and Broker)
Antonio Bossi 00 44 207 601 6100
Robert Finlay
A copy of this announcement is available on the Bowleven website
www.bowleven.com
Notes to Editors:
Bowleven is an African focused oil and gas exploration group,
based in London and traded on AIM. Bowleven's vision is to maximise
value for shareholders by (i) realising the greatest value of the
Group's Etinde asset, (ii) maintaining a relentless focus on both
Operational and Capital expenditure discipline and (iii) ensuring
that cash is wisely invested to cover G&A costs. Bowleven holds
an equity interest in the offshore shallow water Etinde PSC licence
(operated by New Age).
Notes to Announcement:
The information in this release reflects the views and opinions
of Bowleven and has not been reviewed in advance by its joint
venture partners.
CEO's REVIEW
In an increasingly turbulent macro environment, we remain
focused on monetising our Cameroon assets and bringing forward a
return on our investments in the Etinde project. We recognise that
recent sector volatility has impacted plans for companies in the
oil market and across all industries, so whilst we will continue to
pursue our ambition of achieving FID in 2020, there is the
potential for timing slippage.
The collaborative approach with our JV partners bodes well for
the Etinde project going forward, as we ramp up activities towards
FID. In recent meetings both SNH and the Government of Cameroon
have encouraged the JV partners to accelerate efforts towards FID
given the increasingly strategic importance of this asset for our
host country.
The results for the six month period ending 31 December 2019
demonstrate continued financial discipline over the controllable
G&A, notwithstanding the significant increase in the level of
activity on the Etinde licence due to the significant amount of
ongoing pre-FID planning activity.
The short-term focus for the Etinde JV partners is to commence
and complete the FEED studies relating to the design and location
of the initial IM only, Phase 1 of the development plan. Completion
of this is a necessary step to preparing a revised field
development plan for submission to the Cameroon Government and the
State Oil Company, SNH. Formal approval of the revised field
development plan is an important step towards FID, and we look
forward to updating the market on progress as appropriate. SNH and
the Government of Cameroon remain very positive and supportive of
the aims of the JV partners and are seeking to provide as much
support as possible to prioritise the commencement of the Etinde
development project.
As part of the multiple tasks being undertaken in the run up to
the FID decision point, the JV partners will engage SNH to agree
the terms of SNH's participation in the Etinde development project,
including their financial commitments.
Commercial discussions with potential gas off-takers are running
in parallel to development planning. We were pleased to note the
signature of a non-binding LOI between Victoria Oil & Gas Plc
(AIM: VOG) and New Age, for the supply of gas from the Etinde
Field, offshore Cameroon. In addition, discussions are ongoing with
SNH and the Government of Cameroon regarding selling LPG to the
domestic market, where it would likely be used to replace current
LPG imports. Discussions with well-known international oil traders
have also been initiated regarding the export of condensate.
Financing the Etinde development project is also a major
consideration for the Company. The Operator and Bowleven intend to
prepare a financial and technical information package based on the
revised field development plan, the results of FEED and IM Field
reserves to support debt financing. Ongoing project due diligence,
financial system liquidity, and our current balance sheet will form
the basis of our financing strategy which will be articulated to
the market once it is clearly defined. This will be underpinned by
reprocessing existing geophysical data and other technical
investigations on the multiple IE discoveries, which has already
commenced. An improved technical understanding will facilitate a
broader development plan, which will form the basis of a Phase 2
monetisation of the resources during 2021.
Final Investment Decision for Etinde
The Etinde development concept is to construct an onshore gas
processing facility, based at Limbe, Cameroon, which will have the
necessary storage capacity for condensate, LPG/propane and dry gas.
All products are likely to be supplied domestically and to
international markets, albeit regulatory approval for commercial
agreements relating to exporting gas remains a work in
progress.
The initial and subsequent amount of hydrocarbon production is
contingent on regulatory approval, domestic demand, gas reinjection
and recycling reservoir capability and any gas export solution. In
Phase 1, the production level will essentially be capped at the
combination of domestic gas demand (currently expected to arise
from gas powered electricity generation) and the reinjection and
recycling of dry gas, which also acts to enhance condensate
production. In our view, there is a sufficient period of time
between FID and first production to resolve the immediate demand
for gas in Cameroon and delineate the amount available for
export.
Following the appointment of the FEED contractor, the JV
partners will finalise the facilities, infrastructure and
sub-surface requirements and develop a revised field development
plan for Etinde. We expect this to be submitted for initial outline
approval at the completion of the FEED process.
There are a number of equally significant processes which remain
work in progress, that must be concluded ahead of FID. These
include:
-- Appointment of lead financial and legal advisors;
-- Agreement of terms under which SNH will participate in the
project as a full JV partner including the necessary revision of
the JV management agreements; and
-- Submission of a revised field development plan for regulatory
approval alongside the necessary updates to the associated
contractual framework.
The Operator continues to target Q3 2020 for the integration of
these separate work streams followed by project FID. Whilst we,
alongside other JV partners continue to target this date, there is
potential that some short term slippage may occur, given the
complexity of the pre-FID planning process and the need for formal
regulatory approval by the Government of Cameroon. In addition, it
is reasonable to expect, at this junction, that the COVID-19
pandemic is likely to directly and indirectly impact on the FEED
delivery timeline over the coming months. We intend to announce
necessary updates when appropriate.
Whilst the Etinde development plan has been inconclusive in the
recent past, we are convinced that the likelihood of the successful
development of Etinde remains promising in a normal macro
environment and the development will commence in the next 12
months.
OPERATIONS REVIEW
Etinde Exploitation, Offshore Cameroon (25% equity interest)
FEED
Following the completion of an Expression of Interest request,
the JV partners commenced a competitive tender process in January
2020 to appoint a contractor(s) to lead Front End Engineering and
Design studies alongside New Age's existing Drilling advisors. The
FEED contractor reports to and will be manged by a
multi-disciplinary team comprising both New Age and JV partner
staff.
Ten international specialist organisations submitted bids to the
JV by the end of January 2020 deadline. The JV evaluation process
commenced in February 2020 and TechnipFMC was selected as the
preferred bidder and awarded the contract. The Operator is
finalising the contractual terms for the FEED contract and the
associated contract delivery documentation to finalise the contract
in early April 2020.
Subject to confirmation from the FEED studies, the JV partners
have agreed that Phase 1 of the revised field development plan for
Etinde will be focussed on the existing IM discoveries utilising an
onshore processing facility for the gas condensate with a single
well head platform utilising a field gathering and onshore
pipeline. The onshore facilities will be designed on an expandable
modular basis to produce condensate, LPG, propane and natural gas.
The onshore development will include all necessary storage
facilities to enable both onshore use and export of condensate.
Whilst commercial discussions continue, the LPG and dry gas
products are expected to be sold, at least initially, on the
domestic market.
The design concept is expected to include compression and
offshore pipeline facilities to enable dry gas to be reinjected
into suitable reservoirs to enhance condensate recovery, which
creates higher initial levels of production than would be possible.
Export of gas remains of special interest to the JV partners and is
being actively assessed with the relevant stakeholders.
The JV partners are in the preliminary stages of creating an
integrated project development team, which includes representation
from all JV partners to support the FEED and Drilling contractors.
One key deliverable of this consolidated effort is to create a
revised field development plan for submission to and approval by
SNH and the Government of Cameroon.
The JV partners currently forecast that the FEED project as a
whole, including JV staff, will cost around $10 million in total,
the majority of which will be spent over the next 5 to 9
months.
Commercial developments
Gas sales
The JV alongside SNH remain committed to maximising the use of
domestically sourced gas within Cameroon recognising that any
surplus should be subject to export. Our hope is that over time an
increasing proportion of the dry gas produced from Etinde will be
supplied to the domestic market specifically for electricity
generation.
A non-binding letter of interest was signed with Victoria Oil
& Gas plc for the supply of gas from the Etinde Field, by the
JV. Under the terms of the LOI, VOG and New Age will seek to enter
into a gas supply agreement ("GSA"). The LOI envisages that New Age
will supply processed Gas to Gaz du Cameroun S.A. ("GDC"), a
subsidiary of Victoria Oil & Gas Plc, at Limbe. GDC would then
transport the gas to Douala.
The LOI anticipates that the GSA would be for a period of 20
years and would see New Age supply a minimum of 25mmscf per day of
gas to GDC for the first three years, increasing to a minimum of
30mmscf per day. The LOI remains in force until the earlier of the
signature of a GSA or 31 March 2021.
Discussions with several other potential gas off-takers,
relating to potential gas supply agreements and Cameroon gas to
power generation opportunities are also under discussion.
Land lease
An LOI has been signed with the landowners in respect of the
proposed site of the Limbe processing plant, in anticipation of
signing a lease agreement in due course.
Seismic reprocessing
In January 2020, the JV partners appointed WesternGeco to
undertake reprocessing of around 600 km(2) of 3D seismic data
focussing around the IE and IC areas within the Etinde licence. The
aim of the project is to improve the quality of the data to provide
higher resolution analysis of the multiple discoveries in the IE
and IC areas. This should allow the JV partners to derisk and
better quantify the multiple discoveries to enable them to form
part of the field development plan.
Reprocessing and subsequent reanalysis is ongoing with results
expected to become available in Q4 2020. If successful, the JV
partners would seek to add the development of the IE area as Phase
2 of the development based around an additional well head platform
and a potential expansion of the onshore processing facilities
capacity. This would be subject to a second separate FID process
with an amendment to the IM field development plan being submitted
in 2021.
Environmental studies
A number of studies have commenced or are planned to commence
shortly to undertake an environmental analysis of the on- and
offshore areas adjacent to the proposed Limbe processing facility.
These studies are aimed to identifying the pre-existing base line
levels of environmental degradation to support Governmental
approval for the revised Etinde field development plan.
Pipeline route assessment tender
As part of the wider FEED process, the JV holders have commenced
a tender process to undertake sea floor surveys combined with
shallow boreholes and shallow depth geophysical surveys to
determine geotechnical hazards associated with potential pipeline
routes and the location of the proposed conventional buoy mooring
system to be used as part of the Condensate export system under
design.
Bomono, Onshore Cameroon (100% equity interest)
The licences formerly reached the end of their term in December
2018. After some initial discussions regarding extending the
exploration licence for a further term, we have agreed to hand back
the area. Discussions are now focussing on finalising the licence
obligations as part of the process for returning the licence area
to Government control.
Volumetric Update
P50 (C2) net contingent resources to Bowleven on the current 25%
licence interest are 61 mmboe following the Resource reassessment
undertaken by D&M in late 2019. The next resource update is
likely to be undertaken as part of the field development plan
process to formally recategorise Etinde IM field Contingent
Resources as Reserves. Following completion of the seismic
reprocessing of the IC and IE areas, there may be an associated
update to the contingent resources of those fields.
FINANCE REVIEW
The Group reports a loss of $1.4 million (H1 2018: loss of $1.4
million) for the six months ended 31 December 2019.
The Group's current G&A charge was $2.4 million compared to
$2.1 million for the equivalent period last year. This includes
$1.3 million of G&A costs relating to the Etinde project (H1
2018: $1.2 million) charged by the Operator. This represents a very
slight increase of $0.2 million on controllable G&A expenditure
in the first half of 2019 compared to the equivalent period last
year. Bowleven is likely to incur slightly higher costs going
forward reflecting both our in-house activity and the Etinde
Operators G&A relating to the pre-FID Etinde development
project.
Finance income comprises interest and dividend income of $0.2
million (H1 2018: $1.1 million), foreign exchange gain of $0.2
million (H1 2018: gain of $0.3 million) and a mark to market gain
of $0.6 million (H1 2018: loss of $0.6 million) arising from the
revaluation of the Group's financial investments. The decline in
interest and dividend income reflects much lower cash and financial
investments held by the group following the payment of the GBP0.15
per share Special Dividend in February 2019.
Capital expenditure during the period were $0.6 million (H1
2018: $1.4 million) all of which relates to Bowleven's share of the
Etinde geological and development project expenditure recharged by
the Operator. Capital costs in the first half of FY2019 were
relatively low as the majority of the pre-FEED expenditure was
occurred in the previous financial year and the ongoing FEED
element didn't commence until 2020.
At 31 December 2019, Bowleven had $10.9 million of cash and cash
equivalents and no debt (H1 2018: $70.1 million and no debt) plus
$0.5 million of bank deposits relating to security for bank
guarantees issued in respect of the Bomono licence (H1 2018: $0.5
million). The primary reasons of period on period reduction was the
$63.1 million (GBP48.5 million) special dividend paid in February
2019 alongside the amounts incurred on Bowleven's operating costs
and capital expenditure relating to the Etinde project.
Under the terms of the Etinde farm-out transaction in March
2015, the Group also has access to a further $25 million which is
receivable on achieving Etinde FID. This is held as a contingent
asset pending further clarity around Etinde project sanction.
OUTLOOK
During the remainder of 2020, the Group expects to continue to
work alongside the other Etinde JV partners, exploring both
commercial opportunities and related development engineering
designs and costs, with a view to having sufficiently detailed,
costed development plan to reach FID. The level of capital
expenditure relating to FEED related pre-development activities is
expected to increase significantly from the second half of this
financial year onwards.
PRINCIPAL RISKS AND UNCERTAINTIES
The development and project economics of the Etinde wet gas and
light oil discoveries is a function of technical and commercial
monetisation of the gas production. The NPV and project financing
of the various stages of the development is currently under a due
diligence exercise, which is being assessed in light of:
-- The initial cost of the development and the associated equity
funding requirements for the JV partners;
-- Technical work undertaken on gas reinjection and recycling volumes;
-- Domestic market demand and monetisation prospects for natural gas;
-- Commercial terms and regulatory approval for gas export;
-- Regulatory approval for the revised field development plan; and
-- Impact of COVID-19 and the recent oil price reduction on global market conditions.
The Bomono licences will be returned to Government ownership
during the near future. Finalising and handing back the licence may
give rise to a potential charge(s) being levied by SNH.
RESPONSIBILITY STATEMENT
The Directors confirm that to the best of their knowledge:
-- The condensed set of financial statements has been prepared
in a manner consistent with lAS 34 'Interim Financial Reporting'
and the full year end accounts; and
-- The interim management report includes a fair review of the
important events during the first six months and description of
principal risks and uncertainties for the remaining six months of
the year.
Eli Chahin
Chief Executive Officer
26 March 2020
GROUP INCOME STATEMENTS
6 months 6 months
ending
31 December ending Year ending
2019
(unaudited) 31 December 30 June
2018
$000 (unaudited) 2019
$000 (audited)
$000
-------------------------------------- --- ------------- ------------- -------------
Revenue - - -
Administrative expenses (2,399) (2,148) (5,018)
Impairment - - (62,007)
------------------------------------------- ------------- ------------- -------------
Operating loss before financing (2,399) (2,148) (67,025)
Finance and other income 1,022 753 458
------------------------------------------- ------------- ------------- -------------
Loss from operations before taxation (1,377) (1,395) (66,567)
Taxation - - -
Loss for the period/year from
continuing operations (1,377) (1,395) (66,567)
Basic and diluted loss per share
($/share) from continuing operations (0.00) (0.00) (0.20)
------------------------------------------- ------------- ------------- -------------
GROUP STATEMENTS OF COMPREHENSIVE INCOME
6 months 6 months
ended ended Year ended
31 December 31 December 30 June
2019 2018 2019
(unaudited) (unaudited) (audited)
$000 $000 $000
---------------------------------------------- --------------- ------------- -----------
Loss for the year (1,377) (1,395) (66,567)
---------------------------------------------- --------------- ------------- -----------
Other Comprehensive Income:
Items that will be reclassified to
profit and loss:
Currency translation differences - - -
Total comprehensive loss for the period/year (1,377) (1,395) (66,567)
GROUP BALANCE SHEETS
31 December 31 December 30 June
2019 2018 2019
(unaudited) (unaudited) (audited)
$000 $000 $000
=============================== ============= ============= ===========
Non-current assets
Intangible exploration assets 150,646 214,222 150,000
Property, plant and equipment 18 45 23
------------------------------- ------------- ------------- -----------
150,664 214,267 150,023
Current assets
Financial investments 2,284 8,739 4,134
Inventory 1,545 0 1,545
Trade and other receivables 1,253 2,839 1,890
Deferred consideration 0 450 -
Bank deposits 500 500 500
Cash and cash equivalents 10,927 70,124 10,482
------------------------------- ------------- ------------- -----------
16,509 82,652 18,551
Total assets 167,173 296,919 168,574
------------------------------- ------------- ------------- -----------
Current liabilities
Trade and other payables (365) (604) (451)
------------------------------- ------------- ------------- -----------
Total liabilities (365) (604) (451)
Net assets 166,808 296,315 168,123
------------------------------- ------------- ------------- -----------
Equity
Called-up share capital 56,517 56,517 56,517
Share premium 1,599 1,599 1,599
Foreign exchange reserve (69,857) (69,857) (69,857)
Other reserves 2,706 1,161 2,354
Retained earnings 175,843 306,895 177,510
------------------------------- ------------- ------------- -----------
Total equity 166,808 296,315 168,123
------------------------------- ------------- ------------- -----------
GROUP CASH FLOW STATEMENT
6 months 6 months
ended ended Year ended
31 December 31 December 30 June
2019 2018 2019
(unaudited) (unaudited) (audited)
$000 $000 $000
============================================== ============= ============= ===========
Cash Flows from Operating Activities
Loss before tax (1,377) (1,395) (66,567)
---------------------------------------------- ------------- ------------- -----------
Adjustments to reconcile Company loss before tax to net cash used in
operating activities:
Depreciation of property, plant and
equipment 5 30 38
Impairment charge - - 62,007
Non-cash operating costs 216 - 1,080
Inventory Impairment - 150 150
Finance (income) (1,015) (753) (458)
Equity-settled share based payment
transactions 62 85 151
Profit on disposal of financial investments (7) (45) -
(Profit)/Loss on disposal of fixed
assets (3) 49 24
---------------------------------------------- ------------- ------------- -----------
Adjusted loss before tax prior to
changes in working capital (2,119) (1,879) (3,575)
(Increase)/Decrease in trade and other
receivables (48) 160 207
Decrease in trade and other payables (105) (462) (380)
Exchange differences 0 92 -
---------------------------------------------- ------------- ------------- -----------
Net (Cash used) in operating activities (2,272) (2,089) (3,748)
Cash flows from investing activities
Proceeds from sale of Financial investments 2,500 9,570 14,043
Purchase of intangible exploration
assets - (1,430) (1,380)
Purchase of property, plant and equipment - - (22)
Proceeds from the sale of fixed assets 3 13 12
Dividends received from financial
investments 149 304 388
Interest received 65 1,013 1,597
---------------------------------------------- ------------- ------------- -----------
Net Cash from investing activities 2,717 9,470 14,638
---------------------------------------------- ------------- ------------- -----------
Cash flows (used in) financing activities
Proceeds from issue of share capital - - -
Special dividend paid - - (63,142)
---------------------------------------------- ------------- ------------- -----------
Net cash flows from financing activities - - (63,142)
Net increase/(decrease) in cash and
cash equivalents 445 7,381 (52,252)
---------------------------------------------- ------------- ------------- -----------
Cash and cash equivalents at the beginning
of the period/year 10,482 62,734 62,734
Effect of exchange rates on cash and - 9
cash equivalents -
Net increase/(decrease) in cash and
cash equivalents 445 7,381 (52,252)
---------------------------------------------- ------------- ------------- -----------
Cash and cash equivalents at the period/year
end 10,927 70,124 10,482
---------------------------------------------- ------------- ------------- -----------
GROUP STATEMENT OF CHANGES IN EQUITY
Foreign
Called-up exchange Other Retained Total
share capital Share Premium reserve reserves earnings equity
$000 $000 $000 $000 $000 $000
At 30 June 2018 56,517 1,599 (69,857) 1,076 308,290 297,625
Loss for the period - - - - (1,395) (1,395)
Other comprehensive income for - - - - - -
the period
Total comprehensive income for
the period - - - - (1,395) (1,395)
Proceeds from issue of share - - - - - -
capital
Share based payments - - - 85 - 85
Transfer between reserves - - - - - -
At 31 December 2018 56,517 1,599 (69,857) 1,161 306,895 296,315
------------------------------------ --------------- ---------------- ---------- ---------- ---------- ---------
Loss for the year - - - - (65,172) (65,172)
Other comprehensive income for - - - - - -
the period
------------------------------------ --------------- ---------------- ---------- ---------- ---------- ---------
Total comprehensive income for
the period - - - - (65,172) (65,172)
Special dividend - - - - (63,142) (63,142)
Share based payments - - - 122 - 122
Transfer between reserves - - - 1,071 (1,071) -
At 30 June 2019 56,517 1,599 (69,857) 2,354 177,510 168,123
------------------------------------ --------------- ---------------- ---------- ---------- ---------- ---------
Loss for the period - - - - (1,377) (1,377)
Other comprehensive income for - - - - - -
the period
------------------------------------ --------------- ---------------- ---------- ---------- ---------- ---------
Total comprehensive income for
the period - - - - (1,377) (1,377)
Proceeds from issue of share - - - - - -
capital
Share based payments - - - 62 - 62
Transfer between reserves - - - 290 (290) -
------------------------------------ --------------- ---------------- ---------- ---------- ---------- ---------
At 31 December 2019 56,517 1,599 (69,857) 2,706 175,843 166,808
------------------------------------ --------------- ---------------- ---------- ---------- ---------- ---------
NOTES TO THE INTERIM STATEMENTS
For the 6 months ended 31 December 2019
1. Accounting Policies
Basis of Preparation
This Interim Report has been prepared on a basis consistent with
the accounting policies applied to all the periods presented in
these consolidated financial statements.
The disclosed figures are not statutory accounts in terms of
section 435 of the Companies Act 2006. Statutory accounts for the
year ended 30 June 2019, on which the auditors gave an unqualified
opinion and no statements under section 498 (2) or (3), have been
filed with the Registrar of Companies.
2. Going Concern
The financial statements have been prepared on a going concern
basis as the Directors are of the opinion that the Group has
sufficient funds to meet their ongoing working capital and
committed capital expenditure requirements. In making this
assessment, the Directors considered the Group budgets, the cash
flow forecasts and associated risks.
3. Subsequent events
Since the balance sheet date, significant additional
macro-economic uncertainty has developed due to both the prices and
global demand for oil, gas and products as a result of the COVID-19
(coronavirus) outbreak and the recent major fall in global oil
prices. The scale and duration of these developments remain
uncertain but could impact our earnings, cash flow and financial
condition.
In the last few days, the Government of Cameroon has implemented
COVID-19 quarantine procedures. The Government has stopped issuing
visas and has effectively closed the international border to
international travellers as well as closing schools and shutting
bars in the evening. The Government has recommended minimising
internal travel and working from home where possible. As a result,
the Operator has closed their local office and implemented working
from home and restricted travel. We have adopted similar
measures.
Bowleven's UK employees are following the UK Governments advice
and restricting travel and are working from home as default.
4. Other Notes
a) The basic earnings per ordinary share is calculated on a loss
of $1,377,000 (H1 2019: loss of 1,395,000) on a weighted average of
327,465,652 (H1 2019: 327,465,652) ordinary shares.
b) In respect of the 6 months to 31 December 2019, the diluted
earnings per share is calculated on a loss of $1,377,000 on
327,465,652 ordinary shares. The loss attributable to ordinary
shareholders and the number of ordinary shares for the purpose of
calculating the diluted earnings per share are identical to those
used for the basic earnings per share.
c) No dividend has been declared (2019: special dividend of
$63.1 million).
4. Electronic Shareholder Communication
As per the prior year Interim Results and recognising increased
automation in shareholder communications, the Group no longer
produces hard copy Interim Reports. The Annual Report will also be
distributed electronically unless shareholders specifically elect
to receive a hard copy. Copies can be obtained from the Company on
request.
5. Interim Report
This announcement represents the Interim Report and half yearly
results of Bowleven plc. The announcement will be available to
download from the Company website www.bowleven.com .
GLOSSARY
AGM annual general meeting
AIM the market of that name operated by the London
Stock Exchange
Board of Directors the Directors of the Company
boe barrels of oil equivalent
Bomono Permit the production sharing contract between the
Republic of Cameroon and EurOil Limited, dated
12 December 2007, in respect of the area of
approximately 2,328km(2) comprising former
blocks OLHP-1 and OLHP-2 onshore Cameroon;
or, as the context may require, the contract
area to which that production sharing contract
relates
Bowleven Bowleven plc (LSE: BLVN) and/or its subsidiaries
as appropriate
Companies Act 2006 the United Kingdom Companies Act 2006 (as amended)
('the Act')
Company Bowleven plc
Contingent resources those quantities of hydrocarbons that are estimated
to be potentially recoverable from known accumulations,
but which are not currently considered to be
commercially recoverable
D&M DeGolyer and MacNaughton, International Petroleum
consultants
EBT employee benefit trust
Etinde Permit the Etinde Exploitation Authorisation (EA or
EEA). The Etinde EA, granted on 29 July 2014,
covers an area of approximately 461km(2) (formerly
block MLHP-7) and is valid for an initial period
of 20 years. Currently SNH have exercised their
right to back into this licence, but this is
subject to completion
FEED Front end engineering design processes. Basic
Engineering which is conducted after completion
of Conceptual Design or Feasibility Study.
At this stage, before start of EPC (Engineering,
Procurement and Construction), various studies
take place to figure out technical issues and
estimate rough investment cost.
FID final investment decision
FLNG floating liquefied natural gas
G&A general and administration
GIIP Gas initially in place, the volume of gas in
a reservoir before production
Group the Company and its direct and indirect subsidiaries
H1, H2 etc. first half of the financial year, second half
of the financial year etc.
IM, IE, etc Specific locations or areas where Miocene aged
Intra-Isongo reservoirs horizons have been
identified as actual or potential oil and gas
condensate fields
IFRS International Financial Reporting Standards
km(2) square kilometres
LNG liquefied natural gas
mmboe million barrels of oil equivalent
New Age New Age (African Global Energy) Limited, a
privately-owned oil and gas group or its subsidiary
New Age Cameroon Offshore Petroleum SA
ordinary shares ordinary shares of 10p each in the capital
of the Company
PEA provisional exploitation authorisation
PSC production sharing contract
P50 50% probability that volumes will be equal
to or greater than stated volumes
P90 90% probability that volumes will be equal
to or greater than stated volumes
Q1, Q2 etc. first quarter, second quarter etc.
SNH Société Nationale des Hydrocarbures,
the national oil and gas company of the Republic
of Cameroon
tcf trillion cubic feet
US United States of America
$ or US Dollars United States of America Dollars
GBP or GB Pounds Great Britain Pounds Sterling
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London Stock Exchange. RNS is approved by the Financial Conduct
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR GZGZFVVVGGZM
(END) Dow Jones Newswires
March 27, 2020 03:00 ET (07:00 GMT)
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