Bowleven Share Discussion Threads

[cyan] 30/11/2019 14:27

COC's interest in BLVN was quite clear from the start ; to carpetbag; make a fast buck; not stay the course to development.

If you go all the way back to March 2017 Malcy and his useless spies were reporting that COC had lined up a buyer for ETINDE.

I think a lot of investors recognised COC's intention and were hoping to cash out.

Sometime ago I expressed the opinion that COc must have been 100% certain of an Etinde sale to justify such a large return of cash. I was completely wrong.

It now appears that COC just couldn't wait to get their hands on the cash pile and that has lead directly to the present dire straights.

The share price is in the toilet and it appears not even our partners want to buy our 20%. COC do not mention an out right sale at all now. Its all talk about how they may have to raise more funds in order to participate in a possible field development.
How many here expected that they would possibly face being asked to dig deep into their pockets?
The RNS was bad news; the asset value has gone down and we have the license expiry risk.
What will the government do if FID is not achieved in time; ask for an extension fee or .....?
The expiry date is not that far away and yet the partners seem a long way from a settled development plan .

If COC manage in fast order to get to FID and that $25m payment; its still not going to be enough to pay our share of development costs; Read this from the RNS;

"As Bowleven continues to fund its obligation to get to FID, the resulting payment to the Company of $25 million by our JV partners will provide a suitable cash buffer until additional funding for our portion of the project development cost is secured."

Bowleven remains a money pit.

I am out now. Good luck

[secs in the city] 30/11/2019 09:15

No doubt the lenders would insist on a degree of equity raising and counting as an institutional holder, COC will be able to buy the shares at a big discount but ordinary shareholders will not (no pre-emption rights - a main the reason to avoid AIM!!), so they can grab a big chunk if worth anything - if they manage to hold on to it after licence expiry. They mentioned a charge to exit the Bomono licence, what size might that might be?

[johncasey] 29/11/2019 21:58

this is like VOG chart..join the club!

[cyan] 29/11/2019 17:55

It was a stupid idea to return so much cash. The share was substantially higher and they held a good amount of cash to put towards field development.

Good chance they would have had to raise some additional capex; but, IF it was by tapping shareholders, any dilution would have been more bearable.

With the share price in the toilet; any equity fund raise could be extremely dilutive.

[hot_topic] 29/11/2019 17:49

Black Friday for this share. Nothing to see here for at least 2 years, and then they will have to raise capital. I'm out - can't see this going anywhere soon.

[cyan] 29/11/2019 17:45

COC's plan , from the outset was clear; a quick sale of ETINDE; NOT stay the course to development. Its obvious they have dicounted any chance of an outright sale with this paragraph;

"An example of this key philosophy was the return of cash to shareholders undertaken in February 2019. We formed the view that given the increasingly low interest rate environment, the volatile capital markets and the time required to FID, we should return cash to shareholders. When the economics of the Etinde financing are clearly defined, any request for funding - be it from shareholders or lenders - will have to be demonstrated by a suitable business plan at that juncture."


"any request for funding -be it from shareholders.." good grief. Here's a fiver back........errrr....but might need a tenner from you later.

[roberto mancini] 29/11/2019 17:14

CHIEF EXECUTIVE'S REVIEW

"Unlocking Material Value

Bowleven has continued to deliver on its clearly articulated strategy by maturing its Etinde asset towards FID, immediate alignment to shareholders interests and rigorous capital/cost discipline to ensure the successful exploitation of a long-term asset.

Prudent spending during this effort is something Bowleven is also keen to preserve and this invariably leads to a more measured process. It is therefore expected that the earlier Q1 2020 FID date will move to Q3 2020."

...........

What material value? He should be locked up, throw away the key.

Getting to FID has certainly proved to be long-term, 2013>2019 and still as elusive as ever. The whole sorry saga has proven to be one big expoitation, this time next year eh!

Q3 2020? Does anyone seriously believe FID Q3 will be met.
Expiry Jan 2021 looms large.

Bowleven has continued to deliver, ha ha, the long & winding road to the poor house, the perennial annus horribilis.

TERMINATED.

[cyan] 29/11/2019 16:37

"In the meantime, our response is to continue to focus on the prudent management of our balance sheet and acceleration of the path towards securing FID, alongside obtaining the necessary funding to ensure this project is successfully executed."

I had previously expressed my concern ; that by returning so much cash to shareholders removed the "pay to play" option leaving the out right sale of the asset as the only plan.

The paragraph above now suggests to me that any sale by COC has been all but written off and that they are now having to chase cash for the POSSIBLE field development.Now where will that come from.?

[wm2544] 29/11/2019 15:32

fraserdean, sorry but where did you get that info from? Can you post the link?

[roberto mancini] 29/11/2019 14:45

Large brown envelopes under the table before FID agreement with the dis-honourable Cam gov can be reached, if at all. UK MP's appear honest by comparrison,...perhaps NOT.

Maybe an extension Jan 2021> for a nice fat fee,..
Or The FAT LADY sings.

Cash, 2.5p after liquidation.

New Age/LUK will most probably buy the licence back, Bowleven's share will go to Cam gov.

[fraserdean] 29/11/2019 13:35

Bowleven management is totally irrelevant, it's all about New Age, they sold Marine XII to get this done. Bowleven is merely a passenger.

[pjj71] 29/11/2019 13:33

KH was always needed to see this through.. not worth touching until he either returns or the 1p handle is on the share price ..

My negativity has been foolishly dismissed by the rose tinted rampers yet again.. woof woof

[billytkid2] 29/11/2019 13:21

I thought it would be down today but surprised by this level of fall. About half the market cap is now covered by cash so Bowleven share of Etinde being valued at about £10m. Obviously there are major doubts if this will happen but there is still a decent chance of FID and if it does then there is $25m cash and a valuable asset.

[fraserdean] 29/11/2019 13:21

Trade press last month, it's been confirmed

[gark] 29/11/2019 13:19

Where did you see that?

[alamaison5] 29/11/2019 13:17

D1NGA29 Nov '19 - 10:55 - 40885 of 40887
thats the bit , you have a camgov who have insisted on a fertilizer plant and that remains unchanged afaik , remember your operating in Africa where normal rules dont apply

BLVN might have had a chance with K.H. He was as crooked as the above Gov...

[fraserdean] 29/11/2019 13:11

New Age has finally come out for expressions of interest (EoI) for its shallow water Etinde project off Cameroon.

The on-off project took a hit last year following a disappointing two well appraisal campaign, but the private firm has since been working on a series of pre-FEEDs and will now make a final concept selection this quarter.

New Age is inviting the EoI for five different contracts which form part of the three different shortlisted concepts. First production is now expected in 2022, whichever scenario is chosen, with reserves seen as 100m bbl of condensate and 1 Tcf of gas.

The first concept involves a pair of wellhead platforms over the IM and IE fields with gas being piped to shore to a new processing plant at Limbe. A second phase would involve nearshore FLNG infrastructure for gas export. The platforms would be in around 175ft (53m) of water with jackets of around 900 tons and topsides at 500 tons.

The second concept sees production head from a wellhead platform at IE to a central processing platform over IM. The gas would be reinjected at IM while the liquids would be exported to a 550,000 bbl FSO. A second phase would then see the gas piped to another central processing facility to be separated from where it would head to a new medium sized FLNG facility.

The first central processing facility would have production capacity of 25,000 b/d of liquids and 150 MMcf/d of gas and topsides weight of around 5,000 tons

The final possible concept again involves two phases. In the first one there would be a wellhead platform over IE with liquids heading to a central processing platform over IM. Gas would be reinjected and liquids head to the FSO.

The second phase would involve a larger FLNG vessel with an integrated processing plant that would be able to separate LPG.

New Age has separated the work into five contracts: central production facilities, FSO, wellhead platforms, leased FSO and onshore gas processing plant. The latter would have capacity of 150 MMcf/d although it too may be developed in two phases.

New Age is now able to go ahead with the project after Lukoil, which is also a partner in Etinde, paid US $800m for its stake in the Marine XII acreage off Congo Brazzaville.

The SBM/COOEC/JGC/CSSC consortium had previously been earmarked for the vessel both at Etinde and off Congo.

New Age is backed by Chinese based investment fund Noru and has seen rapid management changes in recent years with potential further moves rumoured to be in the offing.

The FLNG option was initially put on hold last year following a disappointing two well appraisal campaign which failed to adequately lift gas reserves. New Age has 1.0 Tcf of gas reserves and wanted at least 2.0 Tcf to forge ahead.

Previous operator, and now minority partner, Bowleven had originally set a final investment date of 2013 for a platform development of the two fields.

[fraserdean] 29/11/2019 12:38

New Age has finally come out for expressions of interest (EoI) for its shallow water Etinde project off Cameroon.

The on-off project took a hit last year following a disappointing two well appraisal campaign, but the private firm has since been working on a series of pre-FEEDs and will now make a final concept selection this quarter.

New Age is inviting the EoI for five different contracts which form part of the three different shortlisted concepts. First production is now expected in 2022, whichever scenario is chosen, with reserves seen as 100m bbl of condensate and 1 Tcf of gas.

The first concept involves a pair of wellhead platforms over the IM and IE fields with gas being piped to shore to a new processing plant at Limbe. A second phase would involve nearshore FLNG infrastructure for gas export. The platforms would be in around 175ft (53m) of water with jackets of around 900 tons and topsides at 500 tons.

The second concept sees production head from a wellhead platform at IE to a central processing platform over IM. The gas would be reinjected at IM while the liquids would be exported to a 550,000 bbl FSO. A second phase would then see the gas piped to another central processing facility to be separated from where it would head to a new medium sized FLNG facility.

The first central processing facility would have production capacity of 25,000 b/d of liquids and 150 MMcf/d of gas and topsides weight of around 5,000 tons

The final possible concept again involves two phases. In the first one there would be a wellhead platform over IE with liquids heading to a central processing platform over IM. Gas would be reinjected and liquids head to the FSO.

The second phase would involve a larger FLNG vessel with an integrated processing plant that would be able to separate LPG.

New Age has separated the work into five contracts: central production facilities, FSO, wellhead platforms, leased FSO and onshore gas processing plant. The latter would have capacity of 150 MMcf/d although it too may be developed in two phases.

New Age is now able to go ahead with the project after Lukoil, which is also a partner in Etinde, paid US $800m for its stake in the Marine XII acreage off Congo Brazzaville.

The SBM/COOEC/JGC/CSSC consortium had previously been earmarked for the vessel both at Etinde and off Congo.

New Age is backed by Chinese based investment fund Noru and has seen rapid management changes in recent years with potential further moves rumoured to be in the offing.

The FLNG option was initially put on hold last year following a disappointing two well appraisal campaign which failed to adequately lift gas reserves. New Age has 1.0 Tcf of gas reserves and wanted at least 2.0 Tcf to forge ahead.

Previous operator, and now minority partner, Bowleven had originally set a final investment date of 2013 for a platform development of the two fields.

[the stinger] 29/11/2019 11:29

BOD have certainly messed up here!

[d1nga] 29/11/2019 10:55

thats the bit , you have a camgov who have insisted on a fertilizer plant and that remains unchanged afaik , remember your operating in Africa where normal rules dont apply

[oilretire] 29/11/2019 10:33

You mean this bit??·   Any impact which could arise should the time taken for the JV partners to agree to FID and the subsequent time taken for the Government to formally approve the revised field development plan results in the current licence end date of January 2021 being exceeded. Although we consider that the risk of the JV partners and Governmental authorities not being able to reach a negotiated agreement to be low, it remains a source of significant uncertainty; 

[d1nga] 29/11/2019 10:29

It's the licence issue that's smashed the sp

[oilretire] 29/11/2019 10:23

Quick scan of results, 2c reduced and $62M impairment...... Is that enough to chop the recent market cap by nearly half??

[dunderheed] 29/11/2019 10:22

PJJ71 - do you know what KH is "doing" now?
Perhaps you'd better call him?