REG - Bowleven plc - Interim Results
30/03/2022 07:00
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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 00 44 203 757 4980
Charlotte Hollinshead
Hugo Liddy
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 (http://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 ending 6 months ending
31 December 2021 31 December 2020 Year ending
(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 ended 6 months 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 ended 6 months ended Year ended
31 December 31 December 30 June
2021 2020 2021
(unaudited) (unaudited) (audited)
$000 $000 $000
Cash Flows from Operating Activities
Loss before tax (1,220) (934) (1,983)
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
Called-up Foreign exchange reserve Other Retained earnings
share capital $000 reserves $000 Total
$000 $000 equity
Share Premium $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 (http://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 plc Bowleven plc (LSE: BLVN) and/or its subsidiaries as appropriate
CFA Central African Francs
Companies Act 2006 ('the Act') the United Kingdom Companies Act 2006 (as amended)
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 Intra-Isongo reservoirs
horizons have been identified as actual or potential oil and gas condensate
IFRS 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
£, GB Pounds, GBP Great Britain Pounds Sterling
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