REG - BowLeven Plc - Preliminary Results Announcement <Origin Href="QuoteRef">BLVN.L</Origin> - Part 2

BowlevenAnnouncement

10/11/2015 07:02

- Part 2: For the preceding part double click  ID:nRSJ1145Fa 

$40 million net carry for the drilling and testing of
two appraisal wells planned on Etinde in 2016 (or cash alternative in 2020 on
non-utilisation of carry) and $15 million in cash receivable due on drilling
completion or by end September 2016 at the latest.  One of the conditions of
the Etinde farm-out agreement was the cancellation of the previously announced
Petrofac strategic alliance which has been treated as a directly attributable
cost of the transaction. On completion of the Etinde farm-out, $9 million was
paid to Petrofac as full and final settlement, to terminate the strategic
alliance. As a result of the above net proceeds of $211 million are recognised
as a credit to intangible exploration assets in the year. A further $5 million
was received as a working capital adjustment on completion of the transaction
and has been recognised in the year. 
 
e)   As at 30 June 2015 a contingent asset of $25 million is disclosed for the
FID consideration relating to the Etinde farm-out and will be credited to
intangible exploration assets once further clarity around Etinde project
sanction/FID is obtained. 
 
f)    Approval was given by shareholders at the AGM on 18 December 2014 to
cancel the Bowleven plc share premium account by way of capital reduction. The
capital reduction was confirmed by the Court of Session in Edinburgh on 20
March 2015 and the entire share premium account of Bowleven plc (£422 million)
cancelled with a corresponding adjustment to retained deficit/earnings in the
year to 30 June 2015. The Court imposed a short term restriction on the use of
the distributable reserves created in Bowleven plc by the cancellation of the
share premium account. Up to 16 March 2016 the consent of the Court is
required for any distribution to shareholders other than the reduction of
share capital by purchases in the market as approved at the 2014 AGM. 
 
g)   30% of the shares in Bowleven (Kenya) Limited are held by First Oil.
Bowleven Kenya is included in the group accounts as a subsidiary with the 30%
First Oil shareholding recognised as a non-controlling interest.  Bowleven
(Kenya) Limited is involved in legal proceedings with the operator of Kenya
block 11B, Adamantine, who are seeking to force the assignment of Bowleven
Kenya's 50% interest in the block to them.  Bowleven Kenya has taken legal
advice which strongly supports the Group's view there is no legal basis for
this action. The Group holds $11.8m in intangible fixed assets for block 11B
($8.8m of which was funded by First Oil). 
 
h)   In the Company balance sheet, an impairment charge of $246 million has
been recognised against the investment in Bowleven Resources Limited.  The net
assets of the subsidiary group have reduced following the payment of dividend
from Bowleven Resources Limited to Bowleven plc (following cancellation of
Bowleven Resources Limited share premium account in the year and subsequent
completion of Etinde farm-out) and impairment loss on the Etinde asset as
noted above.  This adjustment does not impact the Group results. 
 
(3) 2015 Annual Report and Accounts 
 
Full accounts are scheduled to be posted to shareholders who elected to
continue to receive a hard copy report on Monday 23 November 2015 and can be
obtained, free of charge, at the Company's registered office, 45 Leith Street,
Edinburgh, EH1 3AT for a period of one month. For shareholders who opted to
receive the annual report electronically notification will be provided when
the annual report is available to access 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                                                                                                                                                                                                                                                                                      
 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 or 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                                                                                                                                                                                                                                                                                                                                       
 condensate                                  a light oil that is gaseous under certain reservoir conditions, often discovered with significant volumes of natural gas                                                                                                                                                                                                                           
 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 tha 1 million customers.                                                                                                                                                                                               
 EurOil                                      EurOil Limited, an indirectly wholly owned subsidiary of Bowleven plc, incorporated in Cameroon                                                                                                                                                                                                                                                    
 EWT                                         extended well test                                                                                                                                                                                                                                                                                                                                 
 Ferrostaal                                  Ferrostaal GmbH, a global provider of industrial services in plant construction and engineering services, headquartered in Essen, Germany                                                                                                                                                                                                          
 FID                                         final investment decision                                                                                                                                                                                                                                                                                                                          
 First Oil                                   First Oil plc, a private UK independent exploration and production company based in Aberdeen                                                                                                                                                                                                                                                       
 Fortesa                                     Africa Fortesa Corp Ltd, the entity which entered into a farm-in arrangement with Bowleven with respect to the Bomono Permit which has now subsequently lapsed.                                                                                                                                                                                    
 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                                                                                                                                                                                                                                                                           
 mmboe                                       million barrels of oil equivalent                                                                                                                                                                                                                                                                                                                  
 MOU                                         memorandum of understanding                                                                                                                                                                                                                                                                                                                        
 mscf                                        thousand standard cubic feet of gas                                                                                                                                                                                                                                                                                                                
 MW                                          megawatt; a unit of powerequal to onemillionwatts                                                                                                                                                                                                                                                                                                  
 NewAge                                      New Age (African Global Energy) Limited                                                                                                                                                                                                                                                                                                            
 ordinary shares                             ordinary shares of 10p each in the capital of the Company                                                                                                                                                                                                                                                                                          
 Petrofac                                    Petrofac Energy Developments West Africa Limited, an indirect subsidiary of Petrofac Limited (LSE: PFC)                                                                                                                                                                                                                                            
 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                                                                                                                                                                                                                                                                  
 strategic alliance                          the proposed strategic alliance between Bowleven and Petrofac in respect of the Etinde development on the terms set out in the Strategic Alliance Agreement                                                                                                                                                                                        
 Strategic Alliance Agreement                the agreement of that name dated 6 November 2012 between Bowleven and Petrofac                                                                                                                                                                                                                                                                     
 tcf                                         trillion cubic feet                                                                                                                                                                                                                                                                                                                                
 2D                                          two dimensional                                                                                                                                                                                                                                                                                                                                    
 $                                           United States of America Dollars                                                                                                                                                                                                                                                                                                                   
 £ or GB pounds                              Great Britain Pounds Sterling                                                                                                                                                                                                                                                                                                                      
 
 
Notes: 
 
Prospective resources, contingent resources and reserves shall have the
meanings given to them by the guidance on petroleum resources classification
contained in the 2007 SPE Petroleum Management System published jointly by the
Society of Petroleum Engineers, The American Association of Petroleum
Geologists, the World Petroleum Council and the Society of Petroleum
Evaluation Engineers. 
 
For the purposes of this announcement, 6 mscf of gas has been converted to 1
boe. 
 
This information is provided by RNS
The company news service from the London Stock Exchange