REG - BowLeven Plc - Update on Petrofac Strategic Alliance Agreement <Origin Href="QuoteRef">BLVN.L</Origin>

BowlevenAnnouncement

06/09/2014 16:32

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RNS Number : 2921M
BowLeven Plc
15 July 2014 
 
15 July 2014 
 
Bowleven plc ('Bowleven' or 'the Company') 
 
Update on Petrofac Strategic Alliance Agreement 
 
Bowleven, the Africa focused oil and gas exploration group traded on AIM,
announces that it has reached a mutually acceptable agreement with Petrofac to
terminate the Strategic Alliance Agreement. This satisfies one of the
conditions of the LUKOIL and NewAge farm-out transaction announced on 24 June
2014. The termination agreement is subject to completion of the farm-out. 
 
Under this arrangement Bowleven will pay $9 million to Petrofac upon
completion of the farm-out transaction as full and final settlement and the
Strategic Alliance Agreement shall terminate.* 
 
Kevin Hart, Chief Executive of Bowleven plc, said: 
 
"We have worked closely with Petrofac over the last two years and we
appreciate their co-operation in reaching a mutually acceptable termination
agreement." 
 
Enquiries: 
 
For further information please contact: 
 
Bowleven plc 
 
Kevin Hart, Chief Executive                                          00 44 131
524 5678 
 
Kerry Crawford, Finance Director 
 
Brunswick Group LLP 
 
Patrick Handley                                                            00
44 207 404 5959 
 
Simon Maine 
 
Bank of America Merrill Lynch (Nomad) 
 
Tony White                                                                  00
44 207 628 1000 
 
Derek Ross 
 
Note: 
 
*This specific termination event was not envisaged in the SAA. Under the SAA,
a termination payment of $15 million is payable in the event of either a
change of control of Bowleven or a transfer by Bowleven of all of its
interests in the Etinde Permit to a third party. 
 
Notes to Editors: 
 
Bowleven is an African focused oil and gas exploration group, based in
Edinburgh and traded on AIM. Bowleven's strategy is focused on creating and
realising material value through exploration led organic growth.  Bowleven
holds equity interests in five blocks in Cameroon, with three blocks located
offshore in shallow water and two onshore. All of these blocks are operated by
Bowleven. Bowleven also holds an equity interest in an onshore block in Kenya,
operated by Adamantine Energy, and has been awarded three blocks in Zambia,
with applications on two blocks pending. 
 
On 24 June 2014, Bowleven announced that the Group had entered into a
conditional Sale and Purchase Agreement to sell an aggregate 50% operated
interest in the Etinde Permit, Cameroon to LUKOIL and NewAge. It is
anticipated that on completion of the farm-out transaction operatorship of the
offshore Etinde Permit in Cameroon will transfer to CAMOP. Approval of the
transaction by Bowleven shareholders will be sought at a general meeting on 21
July 2014. The circular relating to the proposed farm-out agreement has been
sent to shareholders and a copy can be found on the Bowleven website
www.bowleven.com. 
 
Glossary: 
 
The following are the main terms and abbreviations used in this announcement: 
 
 AIM                                  the market of that name operated by the London Stock Exchange                                                                                                                                                                                                                                                                                                                                    
 Bowleven                             Bowleven plc (LSE:BLVN) and/or its subsidiaries as appropriate                                                                                                                                                                                                                                                                                                                                   
 CAMOP                                Cameroon Offshore Petroleum S.A.R.L, the holder of a 25% non-operated participating interest in the Etinde Permit and an affiliate of NewAge                                                                                                                                                                                                                                                     
 Company                              Bowleven plc                                                                                                                                                                                                                                                                                                                                                                                     
 Etinde Permit                        the production sharing contract between the Republic of Cameroon and EurOil Limited (an indirectly wholly owned subsidiary of the  Company) dated 22 December 2008 in respect of the area of approximately 2,316km², comprising former blocks MLHP-5, MLHP-6 and MLHP-7, offshore Cameroon; or, as the context may require, the contract area to which that production sharing contract relates  
 EurOil                               EurOil Limited, an indirectly wholly owned subsidiary of Bowleven plc, incorporated in Cameroon                                                                                                                                                                                                                                                                                                  
 Group                                the Company and its direct and indirect subsidiaries                                                                                                                                                                                                                                                                                                                                             
 LUKOIL                               LUKOIL Overseas West Project Ltd, a subsidiary undertaking of OAO LUKOIL                                                                                                                                                                                                                                                                                                                         
 NewAge                               NewAge (Africa Global Energy) Limited, the parent undertaking of CAMOP                                                                                                                                                                                                                                                                                                                           
 Petrofac                             Petrofac Energy Developments West Africa Limited, an indirect subsidiary of Petrofac Limited (LSE: PFC)                                                                                                                                                                                                                                                                                          
 strategic alliance                   the proposed strategic alliance between the Company and Petrofac in respect of the Etinde development on the terms set out in the Strategic Alliance Agreement                                                                                                                                                                                                                                   
 Strategic Alliance Agreement or SAA  the agreement of that named dated 6 November 2012 between Bowleven and Petrofac                                                                                                                                                                                                                                                                                                                  
 $                                    United States of America Dollars                                                                                                                                                                                                                                                                                                                                                                 
 
 
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