TIDMBLVN
RNS Number : 4681G
Bowleven plc
30 March 2022
30 March 2022
Bowleven plc
('Bowleven' or 'the Group' or 'the Company')
Interim Results
Bowleven, the Africa focused oil and gas, Exploration and
Production Company with key interests in Cameroon, today announces
its unaudited interim results for the six months ended 31 December
2021.
HIGHLIGHTS
Operational
Etinde
-- The JV partners concluded in December 2021 that the
development option of exporting gas to Equatorial Guinea ('EG') was
the preferred choice in terms of value, risks and benefits to
Cameroon and each individual joint venture ('JV') member.
-- An operating committee meeting ('OCM') was held in
mid-January 2022 where New Age as Operator, presented a technical,
risk and financial evaluation of a wide range of potential
development options to SNH in support of the JV partners'
conclusion.
-- SNH agreed to study the JV partners' recommendation and
report back with their own consideration of the option alongside
their proposal for the next steps as soon as possible. The recent
Ukraine crisis has impacted the ability to coordinate efforts
amongst all the JV members and we envisage a period of
normalization will resume in due course to facilitate this
effort.
-- Whilst one of our JV partners, Lukoil PJSC, has been impacted
by the recent imposition of Russian sanctions, their participation
in the Etinde PSC is as a non-operating minority partner.
Notwithstanding being a private sector concern, we are as yet
uncertain of how the Ukrainian conflict will impact the timeframe
for obtaining final investment decision ('FID') for the
project.
-- At this stage, we remain satisfied that the JV partners could
be able to reach a final investment decision during 2022 however,
we also recognise that the outstanding commercial and political
issues are not within Bowleven's or our JV partners' control and
may therefore in practice require further time to negotiate and
receive the relevant approvals to reach FID.
Corporate
-- The loss for the 6-month period was $1.2 million compared to
$0.9 million for the same period in the prior year. The increased
loss is primarily due to lower interest income.
-- Group cash balance at 31 December 2021 was circa $2.5 million
with a further $2.5 million held in a financial investment, with no
debt or material financial commitments.
-- The Group invested a further $0.3 million to fund its share
of Etinde pre-development and geological and FEED related project
expenditure in the 6-month period.
-- Bowleven considers the total value of cash and investment of
$5.0 million to be sufficient to meet the Group's financial
requirements for at least the next 12 months based on the cash flow
forecasts for the period up to 31 December 2023 which consider a
number of different scenarios. Further details of the Directors'
going concern considerations are provided in Note 2 of these
interim financial statements.
-- As the timing of progress towards FID is not within the
control of the Group, should the commercial and regulatory issues
not be resolved as anticipated in our modelling, it is likely that
Bowleven would need to raise additional short-term funding to
bridge expenditure to FID.
Eli Chahin, Chief Executive Officer of Bowleven plc, said:
"The Group made significant progress in 2021 as the Etinde JV
members concluded on a realistic and economically beneficial way to
progress Etinde's development. We continue to monitor the ongoing
stakeholder negotiations regarding progressing the Etinde FID
within 2022. The recent Ukrainian crisis has adversely impacted the
pace of the new chapter in the Etinde development, however we
remain optimistic that all the JV members are aligned to bring to
fruition the more economic Etinde development option.
A significant amount of detailed technical knowledge has been
developed meanwhile and we remain poised to develop the project
funding for the asset in light of improving input variables given
the current oil and gas price outlook. The Etinde asset is of
significant importance to the Government of Cameroon, and we are
keen to unlock its value for both the country and our
shareholders.
We look forward to keeping our shareholders abreast of the
anticipated developments over the coming months."
ENQUIRIES
For further information, please contact:
Bowleven plc
Eli Chahin, Chief Executive 00 44 203 327 0150
Camarco (Financial PR)
Owen Roberts
Charlotte Hollinshead
Hugo Liddy 00 44 203 757 4980
Shore Capital (NOMAD and Broker)
Robert Finlay 00 44 207 601 6100
Daniel Bush
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.
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
Although the rate of progress for the development of Etinde has
been slower than we expected, the situation at the end of the year
was positive and progress since the year end has been very
significant for the project. At the mid-January OCM with SNH, the
Etinde project's Operator, New Age, put forward the preference to
proceed with the development option of exporting gas to EG, a
position jointly held by all the JV partners.
As part of the proposed EG project option, it has been suggested
that a dry gas pipeline be put in place from the Bioko Island
facility, Equatorial Guinea, to onshore Cameroon, which could
enable long term gas supply continuity to Cameroon from non-Etinde
sources. We are further encouraged by recent developments such as
Chevron's plans with respect to a similarly conceived development
plan for YoYo and Yolanda. Much progress has been made in recent
weeks and months on the unitisation agreements for these
intertwined fields between both governments. Clearly the current
commodity price environment presents an opportunity for
developments such as Etinde where the existing project economics
model factors in prices for both liquids and gas significantly
below current market levels.
The EG option comprises using the existing wet gas processing
facilities on Bioko Island, thus reducing both the Etinde initial
capital investment cost and the infrastructure development time. In
addition, the usage of existing facilities lessens the timeframe of
the first production taking place, therefore directly and
indirectly benefiting all of the parties involved. The development
project under this option should not only be easier to finance but
will also maximise the net present value ('NPV') and internal rate
of return ('IRR') of the project. The financial benefits are not
just limited to the JV partners; they extend to the Government of
Cameroon which would receive a larger amount of taxation income
from the project. SNH's share, assuming they participate, will also
generate higher cash flows, and require less financing on their
part.
Final Investment Decision for Etinde
The JV partners have recommended to the regulator, SNH, that we
move forward on the basis of the EG development option, which now
leaves the essential commercial and large scale governmental
approval issues to resolve. There also remain a significant number
of commercial and technical details that require further analysis
and commercial negotiation with Marathon Oil, the Bioko Island
facility operator. In addition, the EG option will need formal
regulatory approval from both SNH and the Government of Cameroon
and the signature of an intergovernmental agreement between
Cameroon and Equatorial Guinea.
Prior to FID, we will require the conclusion of significant
multi-party, multi-governmental commercial and legal agreements,
which may take considerable time to complete.
At the current time, we remain satisfied that the JV partners,
in conjunction with the support of our wider stakeholders and
commercial partners, should be able to reach a final investment
decision during 2022. However, we note that the rate at which we
progress towards FID is not solely under the control of Bowleven or
our JV partners. We must also recognise other factors that create
an impact on the timeline such as the various outstanding
commercial issues that may require a further amount of time to
negotiate, especially given the various potentially conflicting
positions.
Whilst one of our JV partners, Lukoil PJSC, has been impacted by
the recent imposition of Russian sanctions, their participation in
the Etinde PSC is as a non-operating minority partner.
Notwithstanding being a private sector concern, we are as yet
uncertain of how the Ukrainian conflict will impact the timeframe
for obtaining FID for the project.
OPERATIONS REVIEW
Etinde Exploitation, Offshore Cameroon (25% equity interest)
The JV partners held extensive workshops and discussions during
November and December 2021 with a view to reaching an agreement
with regards to what we collectively consider to be the optimum
development solution.
The partners agreed that the Equatorial Guinea solution had the
lowest technical and financing risk, whilst generating the highest
project net present value ('NPV') and internal rate of return
('IRR'). It was noted that significant commercial risk remained
with this option and there was likely to be significant regulatory
approval risk to overcome. The partners further agreed that the
proposed Limbe onshore gas processing plant ('GPP') did not provide
sufficient economic return, especially given the very high initial
investment required, although the Operator demonstrated that the
financial return remained significant. We consider that there
remain other potential development options, which may be
contemplated later if circumstances change. These are unlikely to
give rise to as significant benefits as the EG proposal, although
they may prove to be better than the previous Limbe GPP option due
to their likely lower initial investment requirement.
The recommended EG option is to use pipeline infrastructure to
take wet gas feed from the IM wellhead platform to the Bioko Island
facility for processing. In order to meet Cameroon's current and
longer term requirements, this option would include the development
of further pipeline infrastructure to take processed natural gas
back to Cameroon. This plan would require approval by both the
Governments of Cameroon and Equatorial Guinea in form of an
inter-governmental agreement. There would also need to be a
commercial contract with Marathon Oil's operated facilities and a
gas sales agreement(s) to supply gas to the domestic market. A
perceived complexity to all of this relates to the nature of the
commercial structure with Marathon and the various JVs that own and
operate different facilities within the Punta Europa complex on
Bioko Island.
Of particular importance is the nature of the agreement relating
to the processing of wet gas feed and the ultimate ownership of the
sales products. SNH has previously indicated that their support
would be contingent on a tolling style arrangement where the JV
partners retained ownership of the sales products. Also, it is
likely that additional processing facilities (including the supply
pipeline, high pressure separator and measuring facilities) would
need to be developed.
At an OCM with SNH in January 2022, the JV partners recommended
that the EG development option is the optimum development solution
in terms of value, risks, and benefits to Cameroon and each
individual JV member and recommended that the JV partners proceed
on this basis.
During the meeting, the Operator presented a thorough technical,
risk and financial analysis of a wide range of different
development proposals, based on both IM only as well as IM and IE
resource cases, to further demonstrate the JV partners'
recommendation to proceed with the EG option.
Société Nationale des Hydrocarbures ('SNH') offered the JV
partners their own perspective and agreed to hold a further meeting
as soon as possible to feedback their own considerations and to
agree a mutually acceptable way forward, which could form the basis
of the 2022 work plan and budget.
Volumetric Update
P50 (C2) net contingent resources to Bowleven on the current 25%
licence interest are 61 mmboe following the Resource reassessment
undertaken in late 2019. The next resource update is likely to be
undertaken as part of the field development plan process to
formerly re-categorise Etinde IM field Contingent Resources to
Reserves in accordance with any field development plan produced at
that point. Following completion of the technical preparations for
FID purposes, later in 2022 or thereafter, there may be an
associated update to the contingent resources of those fields as
well.
Bomono, Onshore Cameroon (100% equity interest)
The Government of Cameroon has formally withdrawn the Bomono
licence which terminated on 18 December 2018. Legally, we may
continue to have some potential liabilities until we have had a
formal licence closeout meeting with SNH. This was expected to
occur during 2020 but has not been scheduled yet due to COVID-19
and other time constraints. Updates will be provided as and when
appropriate.
FINANCE REVIEW
The Group reports a loss of $1.2 million (H1 2020: loss of $0.9
million) for the six months ended 31 December 2021.
The Group's current period G&A expense charge was $1.3
million (2020: $1.3 million) which was unchanged from the
equivalent period in the prior year. This includes $0.3 million of
Etinde G&A costs (2020: $0.4 million) charged by the Operator.
At the end of the reporting period, the Operator made further cost
savings in Cameroon based on the current operational tempo. At the
reporting date, the Group has not seen any benefit from these
savings. This situation is likely to continue into 2022 at least
until Etinde FID occurs. Bowleven's in-house costs are likely to
continue at much the same level as currently incurred.
Finance income comprises interest and dividend income of $0.1
million (H1 2020: $0.2 million), foreign exchange loss of $0.03
million (2020: gain $0.1 million) and a mark to market gain of
$0.02 million (H1 2020: gain $0.1 million) arising from the
revaluation of the Group's financial investment.
Capital expenditure cash flows during the 6-month period were
$0.3 million (H1 2020: $1.8 million) all of which relates to
Bowleven's share of the Etinde geological and FEED related project
expenditure recharged by the Operator. The reduction of investment
activity at Etinde is due to the current status of the project.
Main expenditure in the period was related to the development of
Operator resource updates for the IE field and assessing technical
development options for the JV partners. Expenditure is not likely
to increase considerably until the JV partners receive approval
from SNH to proceed with the detailed assessment of the EG option
and the completion of any commercial discussions with possible
counterparties.
At 31 December 2021, Bowleven had $2.5 million of cash and cash
equivalents and no debt (H1 2020: $6.4 million and no debt).
Bowleven continues to own $2.5 million of financial investment in
preference shares (H1 2020: $2.1 million), which generates a
reasonable financial return at relatively low investment risk.
Under the terms of the Etinde farm-out transaction in March
2015, the Group is also entitled to a $25 million payment from the
JV partners, which is contingent on achieving Etinde FID. This is
held as a contingent asset pending further clarity around Etinde
FID project sanction.
As discussed in the published financial statements for the year
ending 30 June 2021, as current cash and liquid investment
resources continue to decrease through the combination of normal
operating costs and continued low level development
planning-related capital investment, our working capital safety
margin is reducing, however the Group remains confident in meeting
its financial obligations for the calendar year 2022.
OUTLOOK
During the remainder of 2022, the Group expects to continue to
work alongside the other Etinde JV partners to undertake commercial
discussions with Marathon Oil as operator of the Bioko Island
facilities JVs. Subject to obtaining approval for the EG
development option from SNH, we expect to support political
discussions between the Governments of Cameroon and Equatorial
Guinea alongside SNH, Marathon Oil and other interested parties of
those countries. Once the legal and commercial development
framework is agreed, we expect the project to proceed to FID and to
raise investment finance from commercial debt finance providers,
our shareholders and other potential equity investors to support
the investment required in project development.
The Directors remain satisfied that the Group has adequate
resources to continue in operational existence for the foreseeable
future and for at least 12 months from the date of signing this
report based on our cash flow forecast for the period up to 31
December 2023. Having reviewed a number of possible FID, opex and
capex scenarios (which are described further in note 2 to these
interim financial statements), the Directors are of the opinion
that the Group currently has sufficient funds to meet ongoing
working capital and committed capital expenditure requirements.
However, as current cash and liquid investment resources continue
to decline through the combination of normal operating costs and
continued low level development planning-related capital
investment, our safety margin is continuing to decrease.
There remains a considerable number of regulatory and commercial
uncertainties regarding aspects of the Etinde development together
with reaching multi-stakeholder approval of the JV partners'
preferred development option. We currently expect FID to occur in
late 2022 however this will be reliant on many of the above
considerations being resolved by mid-2022. Not adequately resolving
these may cause FID to slip to 2023, or higher investment spending
on Etinde than currently considered, which will create a high
financial risk for Bowleven. Under these circumstances, it is
likely that Bowleven will need to seek additional short-term
financing to allow the Group's cash expenditure to bridge any gap
to attaining FID and the receipt of the $25 million FID payment.
Additional funding requirements will depend on the circumstances at
the time and the delay to FID. Further details are provided in note
2 to the interim accounts.
PRINCIPAL RISKS AND UNCERTAINTIES
The ultimate development of the Etinde wet gas and light oil
discoveries is likely to be technically and commercially dependent
on the extent to which the JV will be able to fully utilise the
volume of gas potentially produced by the onshore processing of the
production gas and liquids. This is the most significant
controlling factor, which governs the project's NPV. The
substantial associated risks are:
-- Governmental approval of a revised field development plan,
-- The timing between SNH and the Government of Cameroon
approving the field development plan, commercial and technical
discussions in relation to the field development plan, the JV
partners giving FID approval and the exhaustion of our current
working capital funds,
-- Raising sufficient debt and equity finance by both Bowleven
and our JV partners, following FID, to finance the initial cost of
the development,
-- Receipt of the FID success payment from both of the JV
partners, Lukoil and New Age, when it falls due,
-- Domestic market demand for natural gas and the ability to monetise this demand,
-- Commercial terms and government permission to export gas.
RESPONSIBILITY STATEMENT
The Directors confirm that to the best of their knowledge, 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 Jack Arnoff
Chief Executive Officer Chairman
29 March 2022 29 March 2022
GROUP INCOME STATEMENTS
6 months 6 months
ending ending
31 December 31 December Year ending
2021 2020
(unaudited) (unaudited) 30 June
$000 $000 2021
(audited)
$000
-------------------------------------- ---- ------------- ------------- -------------
Revenue - - -
Administrative expenses (1,278) (1,284) (2,803)
Impairment - - -
-------------------------------------- ---- ------------- ------------- -------------
Operating loss before financing (1,278) (1,284) (2,803)
Finance and other income 58 350 820
-------------------------------------------- ------------- ------------- -------------
Loss from operations before taxation (1,220) (934) (1,983)
Taxation - - -
Loss for the period/year from
continuing operations (1,220) (934) (1,983)
-------------------------------------------- ------------- ------------- -------------
Basic and diluted loss per share
($/share) from continuing operations (0.00) (0.00) (0.01)
-------------------------------------------- ------------- ------------- -------------
GROUP STATEMENTS OF COMPREHENSIVE INCOME
6 months 6 months
ended ended Year ended
31 December 31 December 30 June
2021 2020 2021
(unaudited) (unaudited) (audited)
$000 $000 $000
---------------------------------------------- ------------- ------------- -----------
Loss for the year (1,220) (934) (1,983)
---------------------------------------------- ------------- ------------- -----------
Total comprehensive loss for the period/year (1,220) (934) (1,983)
---------------------------------------------- ------------- ------------- -----------
GROUP BALANCE SHEETS
31 December 31 December 30 June
2021 2020 2021
(unaudited) (unaudited) (audited)
$000 $000 $000
=============================== ============= ============= ===========
Non-current assets
Intangible exploration assets 155,195 153,749 154,885
Property, plant and equipment 28 58 31
------------------------------- ------------- ------------- -----------
155,223 153,807 154,916
Current assets
Financial investments 2,481 2,133 2,499
Inventory 1,180 2,577 1,180
Trade and other receivables 1,789 1,165 1,838
Cash and cash equivalents 2,485 6,409 4,094
------------------------------- ------------- ------------- -----------
7,935 12,284 9,611
Total assets 163,158 166,091 164,527
------------------------------- ------------- ------------- -----------
Current liabilities
Trade and other payables (571) (1,339) (781)
Lease liabilities (9) (13) (2)
------------------------------- ------------- ------------- -----------
Total current liabilities (580) (1,352) (783)
Long-term Liabilities
Lease liabilities - (2) -
------------------------------- ------------- ------------- -----------
Total liabilities (580) (1,354) (783)
------------------------------- ------------- ------------- -----------
Net assets 162,578 164,737 163,744
------------------------------- ------------- ------------- -----------
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 2,741 2,631 2,687
Retained earnings 171,578 173,847 172,798
------------------------------- ------------- ------------- -----------
Total equity 162,578 164,737 163,744
------------------------------- ------------- ------------- -----------
GROUP CASH FLOW STATEMENT
6 months 6 months
ended ended Year ended
31 December 31 December 30 June
2021 2020 2021
(unaudited) (unaudited) (audited)
$000 $000 $000
============================================== ============= ============= ===========
Cash Flows from Operating Activities
( 1,983
Loss before tax (1,220) (934) )
---------------------------------------------- ------------- ------------- -----------
Adjustments to reconcile Company loss before tax to net cash used
in operating activities:
Depreciation of property, plant and
equipment 12 27 57
Non-cash operating costs - 20 -
Finance (income) (58) (350) (820)
Equity-settled share-based payment
transactions 54 53 109
Profit on disposal of financial investments - - -
Loss on disposal of fixed assets - - 31
---------------------------------------------- ------------- ------------- -----------
Adjusted loss before tax prior to
changes in working capital (1,212) (1,184) (2,606)
Decrease/(increase) in trade and other
receivables 54 13 (491)
Decrease/(increase) in trade and other
payables (242) 224 (624)
Net (Cash used) in operating activities (1,400) (947) (3,721)
Cash flows used in investing activities
Proceeds from the sale of fixed assets - - (21)
Purchase of intangible exploration
assets (318) (1,824) (1,446)
Purchase of property, plant and equipment - - -
Dividends received from financial
investments 110 110 220
Interest received - 8 -
---------------------------------------------- ------------- ------------- -----------
Net Cash from/(used in) investing
activities (208) (1,706) ( 1,247)
---------------------------------------------- ------------- ------------- -----------
Cash flows used in/from financing
activities
Lease payments (1) (40) (40)
Net cash flows from financing activities (1) (40) (40)
Net (decrease)/increase in cash and
cash equivalents (1,609) (2,693) (5,008)
---------------------------------------------- ------------- ------------- -----------
Cash and cash equivalents at the beginning
of the period/year 4,094 9,102 9,102
Net (decrease) in cash and cash equivalents (1,609) (2,693) (5,008)
---------------------------------------------- ------------- ------------- -----------
Cash and cash equivalents at the period/year
end 2,485 6,409 4,094
---------------------------------------------- ------------- ------------- -----------
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 1 July 2020 56,517 1,599 (69,857) 2,927 174,432 165,618
Loss for the period - - - - (934) (934)
Other comprehensive income for - - - - - -
the period
Total comprehensive income for
the period - - - - (934) (934)
Share based payments - - - 53 - 53
Transfer between reserves - - - (349) 349 -
-------------------------------- --------------- ---------------- ---------- ---------- ---------- ---------
At 31 December 2020 56,517 1,599 (69,857) 2,631 173,847 164,737
-------------------------------- --------------- ---------------- ---------- ---------- ---------- ---------
Loss for the period - - - - (1,049) (1,049)
Other comprehensive income for - - - - - -
the period
-------------------------------- --------------- ---------------- ---------- ---------- ---------- ---------
Total comprehensive income for
the period - - - - (1,049) (1,049)
Share based payments - - - 56 - 56
Revaluation of EBT shares 34 (34) -
Transfer between reserves - - - (34) 34 -
At 30 June 2021 56,517 1,599 (69,857) 2,687 172,798 163,744
-------------------------------- --------------- ---------------- ---------- ---------- ---------- ---------
Loss for the period - - - - (1,220) (1,220)
Other comprehensive income for - - - - - -
the period
-------------------------------- --------------- ---------------- ---------- ---------- ---------- ---------
Total comprehensive income for
the period - - - - (1,220) (1,220)
Share based payments - - - 54 54
Transfer between reserves - - - - -
-------------------------------- --------------- ---------------- ---------- ---------- ---------- ---------
At 31 December 2021 56,517 1,599 (69,857) 2,741 171,578 162,578
-------------------------------- --------------- ---------------- ---------- ---------- ---------- ---------
NOTES TO THE INTERIM STATEMENTS
For the 6 months ended 31 December 2021
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 2021, 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
Global market conditions combined with the ongoing COVID-19
(coronavirus) pandemic have caused significant additional
macroeconomic uncertainty during the 2021 calendar year that have
impacted the prices and global demand for oil, gas and products.
The scale and duration of these developments remain uncertain but
could impact our earnings, cash flow and financial condition in
future periods.
Progress towards FID has been slower than we expected and there
remain considerable commercial and regulatory issues which require
resolution before FID can be attained. We cannot accurately predict
the timing of resolution of these concerns at the current time.
Many of these concerns lie outside the Etinde JO partners direct
control. The timing of resolving these issues impacts the
Directors' considerations relating to the potential scenarios
considered in their assessment of the going concern status of the
Group.
It was therefore considered appropriate that a number of
scenarios were considered by the Directors. These ranged from no
FID being achieved in the forecast period through to a number of
different development scenarios. In addition to these scenarios,
several sensitivities were modelled which considered the impact of
increases in opex and capex. These scenarios demonstrated positive
cash balances twelve months from the date of approval of these
interim financial statements.
As the timing of progress towards FID is not within the control
of the Group, should the commercial and regulatory issues not be
resolved as anticipated in our modelling, it is likely that
Bowleven would be required to raise additional short term funding
to bridge expenditure to FID.
At FID Bowleven is due to receive $25 million from our Joint
Venture partners under the terms of the 2015 farm-in agreement. The
Directors do not anticipate any timing issue relating to receipt of
these funds when they fall due but note that any failure to receive
these funds by the first half of 2023 may cause funding issues for
the Bowleven Group. The Directors also note the recent sanctions
imposed on Russian individuals and organisations by international
governments. Whilst the Directors currently have no reason to
believe these will impact on Lukoil's ability to settle its 75%
share of the $25 million FID payment when it falls due, they
acknowledge that the Ukraine conflict adds a heightened level of
risk in this respect.
The Directors consider that the risk of the Government of
Cameroon removing the Etinde PSC contract from the Etinde JO
partners is low to medium at the current time, for the following
reasons:
-- the issue of the Etinde licence expiry in January 2021 date
has not been raised as a formal concern by SNH and SNH has approved
all annual work programmes and budgets up to and including the year
ending 31 December 2021; and
-- we will request the Government eliminate this uncertainty as
part of the FID regulatory approval process.
Looking to the future, the Directors are satisfied that the
Group would be able to secure additional debt and equity funding in
order to finance its share of the Etinde development. Having taken
the preceding funding risks into due account and after making
enquiries, the Directors are satisfied that the Group has adequate
resources to continue in operational existence for the foreseeable
future and for at least 12 months from the date of approving this
interim report. Accordingly, the interim 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 ongoing working
capital and committed capital expenditure requirements.
3. Subsequent events
There have been no significant post balance sheet events.
4. Other Notes
a) The basic earnings per ordinary share is calculated on a loss
of $1,220,000 (H1 2020: loss $934,000) on a weighted average of
327,465,652 (H1 2021: 327,465,652) ordinary shares.
b) In respect of the 6 months to 31 December 2021 the diluted
earnings per share is calculated on a loss of $1,220,000 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.
5. 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 is
distributed electronically unless shareholders specifically elect
to receive a hard copy which can be obtained from the Company on
request.
6. 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
Articles of Association the internal rules by which a company is governed
BBL or bbl barrel of oil
bcf or bscf billion standard cubic feet of gas
Board of Directors the Directors of the Company
boe barrels of oil equivalent
Bomono Permit/Licence the production sharing contract between the Republic
of Cameroon and EurOil, dated 12 December 2007, in
respect of the area of approximately 2,328 km2 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 or Bowleven Bowleven plc (LSE: BLVN) and/or its subsidiaries
plc as appropriate
CFA Central African Francs
Companies Act 2006 the United Kingdom Companies Act 2006 (as amended)
('the Act')
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
EA Exploitation Authorisation
EBT employee benefit trust
EEA or EEEA Etinde Exclusive Exploitation Agreement
EG Equatorial Guinea
E & P exploration and production
Etinde Permit the Etinde Exclusive Exploitation Authorisation agreement
or area. The Etinde EA, granted on 29 July 2014,
covers an area of approximately 461km2 (formerly
block MLHP-7) and is valid for an initial period
of 20 years with an initial six-year period ending
January 2021, by which time development must commence.
SNH have informed the JV of their intention to exercise
their right to back into this licence, but have not
signed the Participation Agreement and funded their
share of cash calls in accordance with the requirements
set out in the PSC
EurOil EurOil Limited, an indirectly wholly owned subsidiary
of Bowleven plc, incorporated in Cameroon
FEED Front End Engineering Design
FID final investment decision
G&A general and administration
GIIP gas initially in place
Host Government Government of Cameroon
Group the Company and its direct and indirect subsidiaries
HSSE health, safety, security and environment
IAS International Accounting Standards
IE, IM Specific locations or areas where Miocene aged
IFRS Intra-Isongo reservoirs horizons have been identified
as actual or potential oil and gas condensate fields
International Financial Reporting Standards
Intra Isongo nomenclature used to describe a sequence of sedimentary
rocks in the Etinde licence area
JO, JV or JV partners an unincorporated joint
operation. Joint Venture
partners are the financial
investors who jointly
own and operate the unincorporated
joint operations
km kilometres
km2 square kilometres
LNG liquefied natural gas
LPG liquefied petroleum gas
LUKOIL LUKOIL Overseas West Project Limited, a subsidiary
undertaking of OAO LUKOIL
mmbbls million barrels
mmboe million barrels of oil equivalent
MMBtu Metric Million British Thermal Unit
mmscf million standard cubic feet of gas
mscf thousand standard cubic feet of gas
New Age New Age (African Global Energy) Limited, a privately
held oil and gas company
New Age Group New Age and its subsidiaries
NOMAD nominated advisor
ordinary shares ordinary shares of 10 pence each in the capital of
the Company
P10 (3C) 10% probability that volumes will be equal to or
greater than stated volumes
P50 (2C) 50% probability that volumes will be equal to or
greater than stated volumes
P90 (1C) 90% probability that volumes will be equal to or
greater than stated volumes
PSC production sharing contract
Q1, Q2 etc. first quarter, second quarter etc.
scf standard cubic feet.
shareholders means holders of ordinary shares and 'shareholder'
means any one of them
SNH Société Nationale des Hydrocarbures, the
national oil and gas company of Cameroon
tcf trillion cubic feet
US United States of America
$, US Dollars, USD United States of America Dollars
GBP, GB Pounds, GBP Great Britain Pounds Sterling
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END
IR ZZGZFRLGGZZM
(END) Dow Jones Newswires
March 30, 2022 02:00 ET (06:00 GMT)
Bowleven (AQSE:BLVN.GB)
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부터 5월(5) 2024 으로 6월(6) 2024
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