Bowleven plc Corporate Update (5955N)
26 Settembre 2023 - 8:00AM
UK Regulatory
TIDMBLVN
RNS Number : 5955N
Bowleven plc
26 September 2023
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
26 September 2023
Bowleven plc
('Bowleven' or 'the Group' or 'the Company')
Corporate Update
Bowleven (AIM: BLVN), the Africa focused oil and gas,
exploration and production company with key interests in Cameroon,
provides a corporate and operational update.
New Age Etinde stake sale to Perenco
Despite the elapse of time since the signing of the agreements
for the sale by New Age (African Global Energy) Limited ("New Age")
of its 37.5% stake in, and the operatorship of, the Etinde project
(the "Transaction") to Perenco S.A. ("Perenco"), completion remains
outstanding.
The Company understands that a number of conditions to the
completion of the Transaction remain, principally including the
approval of Société Nationale des Hydrocarbures ("SNH"), the
national oil and gas company of Cameroon. The Company notes that
SNH's approval, the next key milestone towards completion of the
Transaction, has remained outstanding for a significant period and
it remains uncertain when a decision will be made by SNH whether to
approve the Transaction, if at all.
Whilst Bowleven is not a party to Transaction discussions, the
Company understands that, although the formal long-stop date under
the agreement between New Age and Perenco passed on the 30(th) June
2023, both parties continue to seek to progress with the
Transaction. Nevertheless, given the passage of time and the
geopolitical disruptions in neighbouring countries, Bowleven
reminds stakeholders that there can be no guarantee either that the
Transaction will complete, or as to the timing of completion.
Corporate and Financing
In its interim results statement on 30 March 2023, the Company
highlighted a material uncertainty regarding the going concern
status of the Group; noting that it had been considering its
fundraising options and expects to seek to raise additional equity
capital in 2023 to help to finance the Group's ongoing corporate
activities and to assist with financing its share of future
expenditure as the Etinde project progresses towards FID.
As at 23(rd) September 2023, the Group had unaudited cash of c.
$1.25 million, having divested of any remaining financial
investments during 2023. The Company noted on 30 March 2023 that it
had significantly reduced the Group's cost base. The Board of the
Company believes that its cash resources will currently only allow
it to fund the Group through to the end of calendar Q1 2024,
assuming that Bowleven's contribution towards costs at Etinde
remains at current low levels throughout that period (which may or
may not be the case depending on whether the Transaction
completes).
As set out in the Company's announcement on 21 July 2023,
planning for a fundraising during 2023 has continued and the
Company continues to seek, consider and evaluate possible options
to raise additional capital to fund the Group's operations. The
Board had originally expected that the Transaction would have
closed substantially earlier. The extended delay, with no
established timeline to closing of the Transaction, has created
uncertainty as regards potential additional risks associated with
the Etinde project and the Company is currently considering a
fundraising proposal from a shareholder which contemplates the
shareholder providing equity capital at a very substantial discount
to the current market price of Bowleven's ordinary shares, whilst
allowing all current shareholders to participate at the same price.
The fundraising is not yet at an advanced stage and therefore there
can be no certainty that a fundraising will be concluded, nor as to
the structure or terms of any such fundraising.
The Company will provide further updates as appropriate.
ENQUIRIES
For further information, please contact:
Bowleven plc
Eli Chahin, Chief Executive 00 44 203 327 0150
Camarco (Financial PR)
Owen Roberts
Hugo Liddy 00 44 203 757 4980
Shore Capital (NOMAD and Broker)
Robert Finlay 00 44 20 7408 4090
Daniel Bush
Angus Murphy
A copy of this announcement is available on the Bowleven website www.bowleven.com
Notes to Editors:
Bowleven plc is an African focused oil and gas group, based in
London and traded on AIM. It is dedicated to realising material
shareholder value from its Etinde asset in Cameroon, whilst
maintaining capital discipline and employing a rigorously selective
approach to other value-enhancing opportunities. Bowleven holds a
strategic equity interest in the offshore, shallow water Etinde
permit (operated by New Age) in Cameroon.
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END
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