REG - Bowleven plc - Corporate Update

BowlevenAnnouncement

26/09/2023 07:00

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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                                00 44 203 757 4980

 Hugo Liddy

 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
(https://url.avanan.click/v2/___http:/www.bowleven.com___.YXAxZTpzaG9yZWNhcDphOm86MzNhMzNjYjE0NWNkMTVkZDUxMDJiZDliNDkzOTA3ZGM6NjphZjc0OjRjYjE5YjM3NDhiNWFiMGQyZDIzNmMyYTRhMDgzNDk1Nzc1YTZjMjk5ZmI4NDBjOTVhZDYxNTAwNmQzZmRkMzg6aDpU)

 

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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