REG - BowLeven Plc - Interim Results Announcement <Origin Href="QuoteRef">BLVN.L</Origin> - Part 2
30/03/2016 07:06
- Part 2: For the preceding part double click ID:nRSd4588Ta below is considered to be a single cash-generating unit. As a result of this impairment review an impairment charge of $133.5 million has been recognised in the Income Statement (H1 2015: $76.0 million), the detail of which is provided below. Etinde The recoverable amount of the Etinde cash-generating unit calculated on the above basis is $168.4 million. As a result of the impairment review a charge of $60.7 million is recognised in the Income Statement. The discounted cash flow model used to assess the Etinde recoverable amount represents a conservative case, and only considers an initial development supplying gas to the planned fertiliser plant excluding any potential additional resources and offtake solutions that may result from planned appraisal drilling, in particular that of the Intra Isongo formation which will be targeted by the two planned appraisal wells. Bowleven's estimated share of the drilling and testing of these wells is covered by a $40 million net carry provided under the Etinde farm-out transaction that completed in March 2015. Bomono The recoverable amount of the Bomono asset calculated on the basis detailed above is $36.6 million resulting in an impairment charge of $61.0 million in the Income Statement. In December 2015 the Group submitted the Bomono Exploitation Authorisation Application (BEAA) to enable progression to the development phase post completion of drilling and testing activities (exploration licence expiry 12 December 2015). The Group is actively engaged with the Minister of Mines (who is responsible for granting EAs) providing clarifications requested pre award. As part of the ongoing process SNH have also indicated support of an exploration licence extension pending EAA progression. The discounted cashflow model utilised is based on the EA submission and assumes a small initial in-situ gas-to-power development. Meanwhile, development planning work is continuing, discussions are progressing regarding the possible sale of gas and the team are in the process of evaluating the potential of both the shallower and deeper reservoirs encountered following the completion of drilling and testing activities in January 2016. A full inventory of existing contingent and prospective resources is currently being compiled. Kenya block 11B Kenya block 11B is the sole asset held in Bowleven Kenya (owned by Bowleven 70% and First Oil 30%). Exploration costs of $11.8 million have been incurred to date ($8.8 million of which was funded by First Oil). With two months remaining in the current phase of the licence and pending conclusion of forward plans on the block, the recoverable amount of the asset has been reduced to zero and a charge $11.8 million recognised in the Income Statement. 4. Other Notes a) The basic earnings per ordinary share is calculated on a loss of $132,033,000 (H1 2014: loss of $81,015,000) on a weighted average of 324,491,784 (H1 2014: 324,302,272) ordinary shares. b) 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. The exercise of share options would have the effect of reducing the loss per share and consequently is not taken into account in the calculation for diluted loss per share. c) No dividend has been declared (2014: nil). 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 will also be distributed electronically unless shareholders specifically elect to receive a hard copy. Copies 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 Actis Actis LLP. Actis is a private equity firm investing exclusively in Africa, Asia and Latin America. In 2014, Actis acquired a 56% stake in Cameroon's national electricity utility, Eneo Adamantine Adamantine Energy (Kenya) Limited, the current operator of, and holder of a 50% participating interest in block 11B AGM annual general meeting AIM the market of that name operated by the London Stock Exchange bbl barrel of oil BLNG barge mounted LNG block 11B the production sharing contract between the Republic of Kenya, Adamantine Energy (Kenya) Limited and Bowleven (Kenya) Limited dated 30 May 2012 in respect of the area of approximately 14,287 km² onshore Kenya and designated as block 11B; or, as the context may require, the contract area to which this production sharing contract relates 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, dated 12 December 2007 in respect of the area of approximately 2,328km² 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 Bowleven (Kenya) Limited / Bowleven Kenya Bowleven (Kenya) Limited, an affiliate of the Company, incorporated in Scotland Companies Act 2006 the United Kingdom Companies Act 2006 (as amended) 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 EA Exploitation Authorisation EAA Exploitation Authorisation Application E&P Exploration and Production Etinde Permit the Etinde Exploitation Authorisation (EA) 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 Eneo Eneo Cameroon SA, an Actis LLP affiliated company. Eneo provides over 900 MW of generation and supplies electricity to more than 1 million customers. FID final investment decision First Oil First Oil Expro Limited, a private UK independent exploration and production company based in Aberdeen. On 19 February 2016 First Oil Expro Limited went into administration. FTG full tensor gravity gradiometry G&A general and administration Group the Company and its direct and indirect subsidiaries IFRS International Financial Reporting Standards IM the Isongo Marine Field area, block MLHP-7, Etinde Permit km² square kilometres LNG liquefied natural gas LUKOIL LUKOIL Overseas West Project Ltd, a subsidiary undertaking of OAO LUKOIL MD measured depth mmboe million barrels of oil equivalent MOU memorandum of understanding mmscfd million standard cubic feet of gas per day MW megawatt; a unit of power equal to one million watts NewAge New Age (African Global Energy) Limited ordinary shares ordinary shares of 10p each in the capital of the Company PSC production sharing contract P50 50% probability that volumes will be equal to or greater than stated volumes SNH Société Nationale des Hydrocarbures, the national oil and gas company of Cameroon tcf trillion cubic feet US United States of America 2D two dimensional $ United States of America Dollars £ or GB pounds Great Britain Pounds Sterling This information is provided by RNS The company news service from the London Stock Exchange
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