Bowleven Share Discussion Threads

[gark] 04/10/2017 17:31

They need to change the name of the company to Godot!

[gark] 02/10/2017 22:38

Think they will now be above 27% so expecting an announcement soon.

[gark] 02/10/2017 22:38

I think they are buying more before an announcement on Etinde.

[cyan] 02/10/2017 20:59

Not sre I believe there is much substance to the taking private theory. Not sure COC have the funds to do it.

[neilyb675] 02/10/2017 18:04

okey dokey, but if it is COC as I guess it is, then are they gonna continue this until they reach the threshold, they are pretty damn close....

[yasrub] 02/10/2017 17:21

Oooops my mistake I see OVMK listed earlier in the year - apologies.

[yasrub] 02/10/2017 17:15

Agree with Cyan if it was COC it would take them to 26.57%. What I have not noticed before is the Dutch value investment fund holding 4.71% - over recent years I do not recall their holding.

[cyan] 02/10/2017 17:06

No. About 0.3% bought; we have 325.45 million in issue. Haven't COC got about 26.2%?
They can buy millions yet, imo

[neilyb675] 02/10/2017 17:02

that's gotta be the one that tips the balance......are they now over the threshold and have to offer for the whole issued shares ????

[cyan] 02/10/2017 16:57

Very large buy today. Was it COC again?

[gark] 02/10/2017 14:59

BLVN results last year released 8 November, results next month?

[hazydaisy] 29/9/2017 07:46

[...] these 2 undervalued small-cap stocks make you brilliantly rich?
Thu, 28th September 2017 - 14:46
Share this
The world of small-cap oil and gas companies is a shady place, but some companies have brighter outlooks than others. Victoria Oil & Gas (LSE:VOG), as well as BowLeven (LSE:BLVN), look to me to be two such companies.

Victoria and BowLeven are working together to unlock value for investors. Earlier this year, Victoria signed a farmout agreement with EurOil Limited, a Bowleven subsidiary, to acquire on completion an 80% working interest in the 2,237 sq km Bomono licence, adjacent to Gaz du Cameroun's Logbaba field. Gaz du Cameroun is a subsidiary of Victora.

Today, the two companies announced that they had extended this farmout agreement once again until the end of the year as they work with all parties to generate the best results.

Falling revenue

Even though Victoria is heading in the right direction, the company's results for the six months ending June, which were published today, show a contraction in revenue and profitability. As production increased by 11%, revenue fell to $15.4m, from last year's $23.6m and earnings before interest, tax, depreciation and amortisation fell to $4.4m from last year's $14.2m.

Nonetheless, despite these uninspiring results, management is highly optimistic about the company's outlook. Commenting on today's figures, chairman Kevin Foo said "the challenge we now face is building our business into one which is four to five times our current size. I believe that this growth is achievable within five years." He continued that "GDC is very well positioned, as the only onshore gas supplier in Cameroon, to meet this demand."

The potential gains on offer here for investors are clear. If management can hit its target of growing the business five times within the next five years, investors could be set to see a return of 500%. The risk here is that the company does not meet this target and instead (like many other small-cap oil & gas companies before it) runs out of cash.

In this case, investors would likely see a 100% loss. Risking 100% for a potential 500% return is, in my view, an attractive bet.

Unlocking value

Investors could also see healthy returns from BowLeven as the company works with Victoria and continues to develop its portfolio. The company's interim results showed that the business had $90m in cash at the end of March, which is worth around 19.5p per share based on current exchange rates.

On top of this, the deal with Victoria should unlock around $6m to $7m in direct revenues and royalties, corresponding to around $4m in post-tax cash flow, according to City analysts. The net asset value of the firm, including these prospective cash flows, is estimated at 53p per share, that's around 71% above the current share price.

Putting it all together

I believe that a combination of both Victoria and BowLeven in your portfolio could produce some highly impressive results. As Victoria grows, BowLeven will also benefit, and it looks as if the two companies are trading at a deep discount to their future potential today.

Finding the best companies

Even though these two small-caps look as if they can produce enormous returns, if things don't go to plan, the shares could end up being worthless. That's why it's important to do your own due diligence.

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Rupert Hargreaves does not own any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

[stansmith3] 29/9/2017 07:07

markmuch difference? really?how can anyone be so thick and ill informed?old board destroyed circa 700m$ of shareholder fundsnew board are doing everything to conserve the peanuts that are left

[hernando2] 29/9/2017 06:11

And no new speculative ventures that uses up all funds and then there is nowt for the shareholders but the need to stump up more capital..that along with the previous post is the difference..

[fft] 29/9/2017 02:26

Markjm,Cost base has been hacked. No of employees down a lot. Short term contracts being used when people needed.

[gark] 28/9/2017 19:47

Interesting Gazprom supplying LNG to Ghana, agreement with Lukoil in terms of Etinde supply, its round the corner after all?

[mark_jm] 28/9/2017 18:35

at present, Im not seeing much difference between this management team and the last one, both are good at extending deadlines whilst see in share price stagnate. zzzzzzzzzzzzzz

[gark] 28/9/2017 07:02

Bomono deadline extended to 31 December now.

[stansmith3] 27/9/2017 08:58

could rising poo be hurrying them along?

[highasakite] 26/9/2017 09:05

Stunning news from VOG this morning.

[warbaby43] 26/9/2017 07:59

4th July RNS indicated farmout option held by VOG had been extended to this Thursday 28th Sept, and my expectation had been for a further extension given all that has been going on at VOG. Perhaps that was wrong and agreement has been reached. At the wire now, though.

And I have yet to see any convincing reason to persuade me that COC will not seek any outcome other than what they put on their tin via the Open Letter of 17th Feb - the disposal of at least the operatorship of Bomono and pursuing Etinde to post appraisal drilling or, more probably FID, with the expectation of a corporate offer for the company with its asset of Etinde and its very healthy slug of accumulated losses.

That should then bring a price considerably above 41p for COC and for us - always assuming of course that there is reasonable success for at least one of the Etinde drills.

[holts] 25/9/2017 19:26

Or we could be in for a repeat of previous action , bit of excitement and back to sleep for a few months , very frustrating.

[wookie77] 25/9/2017 17:20

well looks like a pretty convincing breakout to me. For what it's worth i was with an UHNW Client recently. The family amoung other things have significant energy interests. I was chatting to my client and he had recently come back from a trip to cameroon. He was very surprised that i should have any knowledge on the subject. His words were that there was A LOT going on down there and seems quite a few people looking to get into that space. Good investment opportunities are not unlimited and i'm sure it won't be long before someone runs the ruler on BLVN. Assuming we can avoid to succumbing to Crown Ocean for anywhere near this price. But the family own assets in excess of $3bln and are pretty shrewd as you can imagine.