Bowleven Share Discussion Threads

[alamaison5] 21/8/2018 15:25

Any guess as where this is heading? I have a 25p target.

[wiseowl65] 21/8/2018 14:30

Link is up on Bowleven website's Homepage. It is titled INVESTOR CALL IN AUG 2018

[nufckk] 21/8/2018 13:22

Bowleven just told me that there will be a link to today's Conference Call on their website before the end of the day.

[gunsofmarscapone] 21/8/2018 11:43

Morning All.

Are Blvn going to pop up a link to the conf on the website? Totally missed it.

[benjimun] 21/8/2018 10:46

Hot,
Agree with that. I think Eli mentioned that they wanted to keep funds for further upstream/infrastructure work if needed rather than a further capital raise and puts to bed the notion that COC are looking to sell etinde quickly at 45p.
They know what they have and the cash flows it could generate, they want a fair return and prepared to get involved in development if needed to recognise that.

Did I also hear correctly that the JV partbers have a further x10 prospective locations, was just in Intra-isongo?

Q&A
Was asked about the investments and I think they agreed to specify in later results what precisely they are invested bonds/shares wise. Said they are liquid main market shares/bonds and can be sold easily if cash needed. Good if they did that, show they are being open/honest with investors.

They also admitted that like the previous board they perhaps have not advertised the existence qty/quality of the liquids/condensate as perhaps they could have and as such BLVN has not attracted as much market interest.

[warbaby43] 21/8/2018 10:34

Made notes but off to play golf now.

Meanwhile, suggest Company be contacted to thank them for making themselves available in this format accompanied by a request that they do follow up with their suggestion of more of these in the future and ask if a recording of today can be made available on their website.

Next time though, they do need to liaise better with the Event gang to avoid all the code word hassle.

[sivadnoj] 21/8/2018 10:31

Impressed with the quality of the individuals on the call. Business like, frank, open, engaged.

[zeusfurla] 21/8/2018 10:20

Also missed the start of the call but overall was a down to earth and sensible assessment I thought. Seemed to be good confidence that this asset is economically viable and can be exploited no matter the result of IE4 drilling. Cash $62m, equities $10.7m (spread over 3 investments), bonds $8.5m (over 4 investments). Yield on bonds expected to be 5-7%. Overall 5.5% return for last 3 months on bonds/equities. If we assume running costs of $300k per month and a best case return of 7% this would mean that overall $50m would need to be invested in equities/bonds to cover all running costs. As said in the call, this does move things up the risk curve a bbit from cash. Aim for FID relatively quickly but not until after results of IE4 and further analysis. Cameroon Govt appears to be committed to exploiting Etinde - terms of any deal will no doubt be important. Further discussions with partners essential to moving forward. Positive call overall - patience still needed!

[hot_topic] 21/8/2018 10:03

Hi Slip - yes I missed the first 12 mins. Seems the girl wasn't properly briefed.

However main points from my side:

ca $62m still in cash - rest invested across a range of assets and yields expected to cover G&A spend.

No intention to return cash to shareholders as consider it better held in reserve in case required for future development costs. They do not wish to have to return to the market for funds - either share issue or debt.

COC in it for the long haul - want to see monetisation of the assets

The market is not apportioning any value to Entinde - particularly the liquids. The gas is a very small part of the value.

Expect some test results in the next 2-3 weeks

Anyone got anything else to add or correct the above please do so. HT

[benjimun] 21/8/2018 10:01

Core samples will take 2-3 months to analyse
IE4/310 might take 100 days and will add resources and if I heard correctly prospectively higher volumes than initially thought. Would be usefull if they publish text of call, as they re-capped this as I joined call as they were aware there were late joiners.

[gritchomper2] 21/8/2018 09:58

Struck me as rational and realistic. Set expectations of 2/3 months for New Age to review all the data and get it into their model to work out the impact on the current 1.1 TCF number. They think it will be an uplift but not the additional 0.7 TCF the JV was hoping for.

They expect about the same amount of time for the second drill and the rig contract allows them to keep it to complete the drill and test. Expect to spud end of the month/start of Sept. Happy the costs will be fully covered by the $40m carry.

I picked up that they needed 2 TCF for the LNG solution but got the sense that if they didn’t get to that there were other potential routes to FID, but they were for the JV to discuss further stressing SNH’s importance in those discussions.

[slipanchor3] 21/8/2018 09:49

Hot_Topic

Had the same problem ended up calling the company brokers missed the first 10 minutes.

[gark] 21/8/2018 09:44

From LSE:Positive call i think overall. Investing minimum of cash(c$19mm) to provide income to cover g&a, on track for 2019. Upside to 1.1 tcf expected but not full 0.7. Does seem getting to 2tcf or thereabouts important for fid, anyone else take that read? Strategy to take cash burn off table so can monetise in whatever timeline seems sensible and on track.

[gark] 21/8/2018 09:41

Anything else from call? What's the view?

[hot_topic] 21/8/2018 09:22

Cash reaserves +$60m invested across a range of assets (shares and bonds)- yields about 5-7%. G&A around 300k p/m and expect returns on cash to cover G&A.

[hot_topic] 21/8/2018 09:15

Password is 'Bowleven' :-)

[hot_topic] 21/8/2018 09:13

OK -tried again and now in.

[hot_topic] 21/8/2018 09:12

that's what I did but the girl kept asking for a code.

[ramayer] 21/8/2018 09:11

Drill time 90 days plus testing.... flexible to extend to as needed

[benjimun] 21/8/2018 09:08

Hot 'just ask for Bowleven PLC Investor call', they will take your name..i'm in.

[hot_topic] 21/8/2018 09:03

Need a 'confirmation code' to join the conference call. Anyone know how to get one?

[secs in the city] 21/8/2018 08:59

Fortuna is 99% methane which makes the economics less attractive than Etinde. Etinde contains a considerable amount of condensate and light oil e.g. the Intra Isongo resource contains 1.05TCF gas (about 178mmbbls) and 155mmbbls condensate so is 47% condensate which sells at a premium to Brent or WTI and puts a big cherry on our cake.

[symbo1] 20/8/2018 20:42

Being the cynic I am, perhaps the excuse for a high pressure spike was given because they know what it may be but won’t want to advise the market as such as that would have driven the market price up.New Age may just keep the new find under their hat until they buy the lot then surprise surprise it’s a massive condensate find which they only just tested. If your clever you can easily stay the right side of corrupt just by not telling the whole story on purpose.

[warbaby43] 20/8/2018 16:45

Can't remember whether this link has been posted previously but it does provide a window into the economics of FLNG.

What is somewhat sobering is the difficulty being encountered by Ophir in getting their Fortuna project financed and seeing Schlumberger exit their JVP.