BowLeven Wraps Etinde Farm-Out, Gets Initial $165 Million in Cash

LONDON--Oil and gas explorer Bowleven PLC (BLVN.LN) Tuesday said it received $165 million after completing the farm-out of the Etinde permit in Cameroon.

The farm-out transaction saw Bowleven sell 30% and 10% stakes in the permit to Lukoil Holdings and NewAge (African Global Energy) Ltd. respectively in return for a total consideration of around $250 million.

In addition to initial cash proceeds of $165 million, Bowleven will receive an estimated $5 million cash for working capital; up to $40 million carry for two Etinde appraisal wells, including testing; $15 million cash when appraisal drilling is complete; and $25 million cash, depending on a final investment decision for the project.

"The resulting consideration of cash and carry, together with the expanded and strengthened joint venture, will enable the progression of appraisal and development activities on Etinde," said CEO Kevin Hart.

"Planning for the appraisal drilling on the Intra Isongo is already underway with locations for the two wells nearing finalization. With a carry in place to cover our share of drilling and testing we are looking forward to appraising this exciting reservoir interval."

Shares at 0848 GMT traded a penny or 3.2% higher at 32 pence.

Write to Ed Ballard at [e-mail]

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