Monday 30 March 2020

Bowleven, the Africa focused oil and gas exploration Group traded on AIM, today announces its unaudited interim results for the six months ended 31 December 2019.

Highlights

• Continued progress on Etinde development options and working with joint venture (“JV”) Partners towards agreeing Final Investment Decision (“FID”) in late 2020
• Lead contractor appointed to manage the Front End Engineering Design (“FEED”) process
• TechnipFMC are expected to commence project activity in early April, with a planned
• duration of five to eight months
• Letter of Intent (“LOI”) signed between Victoria Oil & Gas Plc (AIM: VOG) and New Age (African Global Energy) Ltd ("New Age"), for the supply of gas from the Etinde Field, offshore Cameroon
• Ongoing market volatility, caused by the COVID-19 global pandemic and the recent fall in global oil prices could potentially have an adverse effect on the Etinde project timeline

Operational

Etinde

• The JV partners are proceeding with: FEED related processes
• Continuing commercial activities focused around a liquids-based development alongside discussion of sales terms with potential gas, condensate and Liquefied Petroleum Gas
• (“LPG”) off-takers
• Preparatory steps for raising development finance, potentially on a jointly funded basis, to implement the Etinde development project
• Reprocessing seismic data relating to the IE/ID/IB/IC areas of Etinde Bomomoo
• Discussions with the Government of Cameroon and Société Nationale des Hydrocarbures (SNH”) to finalise the closing position and return the licence to the State are ongoing

Eli Chahin, Chief Executive Officer of Bowleven plc, said:

“During the period, we were pleased with the progress made towards achieving FID at Etinde. We advanced a number of important project related work streams, including; appointing a lead FEED contractor, assessing commercial arrangements for the produced condensate and gas,and reviewing potential financing options for the project.

At a time of considerable market turbulence, we are fortunate to benefit from a robust financial position, with in excess of $10 million of cash on the balance sheet and no debt. Coupled with our low cost base, we are well funded to reach FID, after which we will receive $25 million from the JV partners.

Despite the solid progress Bowleven has been making, recent macro conditions have the potential to impact the timing of the Etinde project. As a business, we will continue to work towards achieving FID before year-end and we look forward to keeping all of our stakeholders appraised on progress over the coming months.”

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