Bowleven Share Discussion Threads

[tli8jaguar] 12/10/2016 19:00

Does anyone know how much has Bomono cost us so far? From Dec 14 to Dec 15, we have spent over $60 million on purchase of intangible assets.

[iamthedogman] 12/10/2016 18:35

Sphere25

Just had to get it off my chest......

[corpbren] 12/10/2016 18:15

Sold half my holding this week. Love the assets, hate the monthly burn of cash.
Even a 10/15% voluntary cut in pay would have sent a positive message.

Can't bare to leave completely after all these years.

[iamthedogman] 12/10/2016 17:29

Following the reply from BLVN to my recent email I sent a further email to the Head Concho expressing my displeasure with the nature of said reply......................

Good Morning Kevin,
My name is ..........and I am a long term investor in Bowleven.
I recently emailed the company stating the concerns I have regarding the current situation facing the company. For your information I enclose below copies of both emails."
....................................................................................

Sent: 03 October 2016 09:08
To: IRqueries
Subject: re Bowleven
I am a long term investor in Bowleven plc.
After just receiving the $15m re the Etinde Farm-Out you state that we now have cash of approx. $100m.
At the end of March 2016 the company had cash of approx. $100m.
I understand that there are salaries and day to day running expenses but could you please explain how the company has managed to spend £15m in the last six months with no other apparent expenditure activity being notified by the company ?
Yours faithfully,
..........
....................................................................................

Dear Mr ...............
As disclosed on 3 October 2016, the company held circa $100 million cash at 30 September 2016 and no debt. This figure includes the $15 million that was received from Lukoil and NewAge on the 30 September due date.
In our interims results issued on 30 March 2016 we indicated that Group had cash of circa $100m and no debt on 29 March 2016. In the intervening period cash movements have principally resulted from cashflows relating to drilling/testing post completion of these activities at Bomono and ongoing running costs including those associated with both our assets in Cameroon. At a corporate level we have also been executing our previously announced share buyback programme.
Regards,
Bowleven IR
The Cube | 1st Floor | 45 Leith Street | Edinburgh | EH1 3AT
....................................................................................

Text of my email to Kevin Hart -

I am sorry Kevin but the vague response I received from the company is not acceptable.
As a result of the Etinde Farm-Out the company received an initial substantial cash injection and has now just received a further $15m. I am seriously concerned at the rate of cash burn by Bowleven to such an extent that the cash balance held by the company now stands at only circa $100m.
And what have we got to show for such a depletion in our funds ?
The company has not adhered to any of its timescales, the progress at Etinde is now completely out of our control, the current fiasco at Bomono where vast amounts have been spent on the Bomono permit, coupled with unacceptable rig problems and where at this time we are still completely in the dark as to when the licence will be granted by the Cameroon government.
During the whole of the period since the Farm-Out, the company has continued to pay high end salaries and administrative costs of circa $12m per annum in a small cap company currently valued at circa £80m.
How can you state your intention is to enhance shareholder value when the share price is currently languishing at 25p. In my opinion the market has lost confidence in the board and its inability to take advantage of our privileged position. At the time of the Farm-Out we were cash rich and debt free. Since then the continued cash burn has shown to date nothing positive to enhance the share price Agreed we are in difficult times, but in our strong financial position we were ideally placed to take advantage of the acquisition of distressed but potentially attractive assets at discounted prices. The company has achieved nothing in this direction and the market has reacted and made its decision accordingly.
In my opinion with no other alternatives and as a last resort the company introduced a belated buy-back programme. Apparently even this exercise was mis-managed, the programme being introduced just before a closed period, thereby precluding any buy-back action for two months.
As I stated previously the progress of our "world class asset" at Etinde is totally out of our control. There is a strong possibility that in the current climate Etinde will not be drilled in 2017 and if that happens I can only see the share price of Bowleven heading south, with a further depletion in our cash pile and nothing to show for it as a result of a further period of inactivity by the Board.
Unless positive news is delivered before the AGM that drilling is forthcoming on Etinde in 2017, then in my humble opinion it's time for new stewardship. I can no longer sit here and watch the cash pile reduce at such an alarming rate. There is absolutely no reason why, with such limited operations we should be eating through circa $12m per annum and in the last six months circa $15m. It's just not acceptable.......

I trust you will have the decency to personally reply to this email.
Yours faithfully,
...............................................

Reply I received to the above email:

Dear Mr ........
Kevin has asked us to respond to your email.
Firstly, we understand and appreciate your frustration with the share price. Against a macro-economic environment of prolonged lower oil prices and continuing low sector sentiment it remains a challenging time for the industry. We believe this environment also creates opportunity, however, and we are actively screening opportunities alongside the progression of our existing asset base. Such evaluation does take time with rigorous processes required to ensure such transactions are in the best interests of shareholders – only once an opportunity has matured to an appropriate stage will an announcement be made.
By way of an update on the Company's activities, with respect to our offshore Etinde asset, discussions are ongoing with partners and government officials regarding a number of development opportunities for the licence. As a reminder, the JV remains focused on drilling the two appraisal wells to prove up additional resource volumes, and is targeting 2017.
With regards the onshore Bomono Permit, our focus is on the progression of the EA application with the Cameroon authorities. The award of the EA is integral in progressing development activities on the licence.
Finally, we will ensure your view's are passed on to the executive team.
Thank you for your continued support in Bowleven.
Regards,
Bowleven IR
The Cube | 1st Floor | 45 Leith Street | Edinburgh | EH1 3AT
....................................................................................


Well that was a waste of time......our Lord and Master didn't even have the balls to reply to me personally, instead and as expected the so called reply came from our beloved IR team..........none of my queries or concerns were directly addressed or answered and no apologetic noises were forthcoming as to the reasons for the fast dwindling cash pile.

A typical standard IR same old same old waffling reply........they must all feel so snug and comfy in their dollar lined ivory towers.

IMHO the slightly disconcerting and only point of note in this reply ....... was the reference that the drilling at Etinde is now referred to as just "targeting 2017"

( griff -by the way, please excuse me for using some of your thoughts on one of your posts but it summed up exactly my feelings.)

And so the saga continues my friends................

[gark] 12/10/2016 16:34

I got a similar response but can only hope that if they spent more money on Bomono something worthwhile must be there.Useless management and I though!

[tli8jaguar] 12/10/2016 15:48

I asked BLVN is there any meeting planned with the JV partners this month and about volumetric update due, here is the reply, none any wiser as usual.

Hello,

I write in response to both of your emails.

Firstly, with regards Etinde, discussions are ongoing with partners and government officials regarding a number of development opportunities for the licence and the JV remains focused on drilling the appraisal wells.

The 2 wells drilled at Bomono during late 2015 were both exploration wells. Detailed information is available on earlier company presentations on our website with regard to the prospectivity/sands being targeted by the wells at Zingana and Moambe. The shallower reservoir units were subsequently tested under EWT – the results from these and other information associated drilling/testing activities were provided in various press releases and consolidated in the interims results report in March 2016. The company has not released any volumetric data following drilling/testing. With drilling now complete and with hydrocarbons encountered with both wells, the near-term focus in on the EA application. The award of this EA is integral in progressing development activities on the licence. As we have previously experienced, such processes can take time in Cameroon.

Regards,

Bowleven IR
The Cube | 1st Floor | 45 Leith Street | Edinburgh | EH1 3AT

[fluffy_dog] 12/10/2016 13:08

Specul82 Agree - VOG tie up will not happen. CO will stay for uplift in share price Still think we will see another decent accretive deal done before AGM.

[specul82] 12/10/2016 11:43

Crownocean Are these guys likely to take a place on the board or do you think they are just waiting to realise the profit when blvn are given the go ahead for the drill with re are other things to consider Many people say that they should tie up with vog however I disagree I think both companies are undervalued and both have great potential however Cameroon are still in the infancy of developments the gas produced from vog is not suitable for home use so not a good tie up If bowleven have struck a deal with the ferostaal to supply for fertilizer plant which uses copious amounts of energy I can only guess that this is still the case but they have not started on the project yet Engie has pulled the investment on the LNG on shore project for the moment this really needs to be put back in place before see real upside from this share I am sure this will go ahead in time but this project will be the game changer for bowleven Gla

[grahambr] 11/10/2016 12:14

Yep I keep falling for em !

[slipanchor3] 11/10/2016 11:38

graham

The money back post was made in jest,but many a true word spoken in jest.

[grahambr] 11/10/2016 08:26

I think this may be the time scales taken from RNS August 2014 , bigger than I thought

Bowleven, the Africa focused oil and gas exploration group traded on AIM, is pleased to announce that the formal decree awarding the Etinde Exploitation Authorisation (EA) has been signed by the President of Cameroon. This concludes the final stage of the EA award process. This EA gives Bowleven and its joint venture partners, which will include SNH, the Cameroon State oil company, development and exploitation rights over block MLHP-7 for an initial period of 20 years with the option to renew for up to a further 10 years.

[symbo] 11/10/2016 07:48

Le com , how's about an update on what you've heard is happening. Is this once dead cert now starting to go the way of Xel . Something has to be done about taking all these companies to task who operate without diligence.

[slipanchor3] 10/10/2016 21:19

Maybe that's why they are spending the money like it is going out of fashion, so Lukoil can't ask for their money back, should they walk away.

[slipanchor3] 10/10/2016 20:55

graham
Have asked the same question myself without getting an answer.

The only information I can offer is that I do know of at least one company with a similar clause in their farm out agreement, so its possible its a standard procedure.

[grahambr] 10/10/2016 20:25

For MY info and to save me trauling the "paperwork" can anyone tell me please

How long have Lukoil got to do the drilling ? The deal can't be open ended it must have a termination date (before BOW goes bust presumable)

After that date Bow must get back the rights or cameroon I presume ?

Any light shed appreciated.

[ifthecapfits] 10/10/2016 15:41

More so when the whole sector seems to be flying high at the mo. Very disappointing.

[hugepants] 09/10/2016 20:10

nigelpm3 Oct '16 - 09:16 - 31986 of 31987 2 0
Assume the fall relates to the fact that although they've received $15m in cash they've also burnt through that amount in 6 months.


Funny thing is they keep reiterating the level of capital discipline they are showing! I wouldn't trust this lot to run a fish and chip shop.

[svenice7] 09/10/2016 17:37

I guess the price not going up, shows the lack of trust in Kev.

[tli8jaguar] 08/10/2016 18:20

Never mind UK bribery act, what worry me most is there is no transparency regulations at all with the FCA. The companies can withhold most of the information. they only tell the PIs what they want you to know, the Institution Investors and the HNWIs know a lot more than us and have an absolute unfair advantage. And this should not be allowed to go on.

[fluffy_dog] 08/10/2016 11:48

Etinde may well be 2017q3 but we can acquire another asset meantime and/or merger. That would keep Hart in employment. Bomono - only scratched the surface here but bow will not to spend more £ on deeper Cretaceous drill as preferred by SNH. I personally hope we merge and get out of corrupt Cameroon, a country that has bled us dry over the years. The russkies and Chinese will take over west Africa as they are not subject to UK Bribery Act so they can speed up the bureaucratic process in the usual way in Cameroon. A Jordanian friend of mine tells me he has to line the pockets of every official in Cameroon before he can offload and install his oil and gas equipment. The default mode of the officials at every level is to stall and ask for cash.

[leoneobull] 07/10/2016 19:05

Hello chaps. Will be back in Bow before long but frankly hanging around for Kevin hands in the cash til bonus for nothing Hart wasn't that appealing Pmo made a good chunk back of losses here