Bowleven Share Discussion Threads

[gark] 01/12/2020 13:52

This was in the annual report and referred to LPG only.Liquefied Petroleum Gas (LPG)SNH has informed us that they are interested in becoming the sole offtaker for Etinde LPG. Their intention would be to act as an intermediary between Etinde and the domestic marketplace, with a primary aim of increasinglocal market volumes and replacing imported LPG with domestic supply.under this proposal, SNH wouldbuild and operate an LPG storage and loading facility in Limbé to supply the domestic market with LPG cylinders. The infrastructure requirements for this sales option are being considered as part of the onshore FEED facilities project.

[warbaby43] 01/12/2020 10:52

"I was also interested to read that SNH want the responsibility for managing all Etinde gas produced."

Interesting, Gark, where did you come across that and I'm not too sure that the JVP or their shareholders should be too thrilled at the notion of the commercialisation of Etinde gas being in the hands of a West African state bureaucracy. After all, it was SNH whose price requirements meant that no agreement could be reached with Ferrostaal, and if the fertiliser plant project was still on the stocks, there would be much reduced concerns on finding a home for the gas to facilitate production of the liquids.

[gark] 30/11/2020 17:08

That is big and I was also interested to read that SNH want the responsibility for managing all Etinde gas produced. Points to SNH coming in fully and government support that is important in terms of license and also SNH payment!

[warbaby43] 30/11/2020 16:50

The AR alludes to Etinde LPG for the domestic market, the size of which might be surprising. This, from EnergyMix, with a hat tip to happy sparrow at LSE:

"Nov 30, 2020
Cameroon has issued a call for tenders for the importation of 120,000 metric tons (MT) of Liquefied Petroleum Gas (LPG) for 2021.

The Commission in charge of petroleum product imports-CIPP) asked companies with authorization to import the products to submit bids that will ensure the government’s approval of their importation.

The bids will be opened on Tuesday, December 1, 2020, at the Hydrocarbon Price Stabilization Fund’s (CSPH) headquarters in Yaoundé.

The volume to be imported is 4% higher than the 115,000metrric tons of LPG, imported into the country in 2019.

In that year, the National Hydrocarbons Corporation (SNH) produced only 20,000MT of LPG for the local market. So the imported volume is about six times the local production.

The product will be imported in three batches: 60,000 MT, 35,000 MT, and 25,000 MT.

Okie Johnson Ndoh, President of the CIPP, says the 120,000 MT to be imported will cover the country’s needs in the 2021 fiscal year."

[kbrook] 25/11/2020 17:35

We seem to have seen a pick up in volume and a tick up in price so hopefully this is a sign of things to come

[nufckk] 17/11/2020 14:00

Everything is relative Annual. Before COC kicked them out, there were four or five Directors each earning similar salaries, achieving nothing other than spending ruinous amounts of cash and awarding themselves copious free shares each year in order to keep themselves incentivised. On top of that we had non executive directors, swish offices in Edinburgh (which necessitated regular travel to London for meetings)and a workforce of 50 or so at one point.

I agree though 500k pa is a lot, especially when you read things like "setting the company up for the next decade" in the annual report. I would have a lot more patience if I was being paid 500k pa while I was waiting for the share price to prosper

[annual austerity] 17/11/2020 13:27

https://youtu.be/7ZV8r3M0lxE

[annual austerity] 17/11/2020 13:23

One imagines that all will be forgiven if he delivers, but one is appalled by the level of his salary. One should have paid more attention last year...

[nufckk] 17/11/2020 12:15

You're not wrong on that account. He'd probably find enough money for a million shares down the back of the sofa. Mind you as Kevin Hart once rebuked us " He needs to put food on the table"

[warbaby43] 17/11/2020 11:48

Most likely then that Our Eli is just going to have to fall back on his $504k salary plus $44k in "other benefits"

Now what really would be an share price moving attention grabber would be if he recycled, into a management share purchase, a goodly chunk of that £171,237 dividend he received in February 2019. A purchase of a million shares, or even half a million shares, at these prices, would send a powerful market signal while making not too large a dent in that divi money, even post tax.

Nowt quite like a money where mouth is statement.

[nufckk] 17/11/2020 11:07

Was 45p to 80p but since we had a 15p dividend I'm thinking it may be 30 to 65p now with various amounts of the shares being awarded for different pricepoints, so I'm guessing the full 10,000,000 would require us to be at the top of the scale or above commencing December next year and staying there for three months

[kbrook] 17/11/2020 10:54

Could you remind me of the target?

[nufckk] 17/11/2020 10:38

Regarding the share price....the Bowleven Transformational Incentive Plan expires in March 2022. I have a lot of time for Eli and believe him to be a good guy, but unless he hits his target by December next year (the share price needs to stay above target for 3 months) his free 10,000,000 shares are toast.
Now that would focus my mind.

[warbaby43] 16/11/2020 15:02

"It'll be interesting to see if they reply to Warbaby's question about the first few drills"

Pulling the all info together is not, apparently, as easy as it might seem, given that three of the earlier drills really were earlier, back in the sixties and seventies in fact, with IM-4 being drilled in 1982 and only that one being well tested.

Nick Brough quite generously intends, however, to draft a summary of the available well data while, quite reasonably, cautioning that such an exercise is going to take some time. Given all the other demands on small oilie available management time, therefore, it seems some patience is going to be required.

Meanwhile, it almost beggars belief that VOG now has a bigger market cap than BLVN with many hundreds of trades being made there on each of the last few days, so given the discrepancy on the size and nature of the assets, BLVN management need to come up with an attention grabber to focus some market attention on the investment merits of BLVN.

[nufckk] 13/11/2020 15:42

must admit to being a bit jealous but the massive influx of new posters to the board is a bit suspicious. If VOG do a placing now it would be very suspicious.
But hey, at least they're having a bit of share price action

[gark] 13/11/2020 12:06

VOG has almost tripled the last two days. Let's hope BLVN can do the same!

[gark] 12/11/2020 15:41

VOG reached a decent settlement today. Looks like they can move forward with domestic projects now. Nicely timed given where we stand on Etinde. Hopefully this points to a positive remapping exercise with greater need for domestic gas take up.

[nufckk] 12/11/2020 10:18

Warbaby. Unfortunately, the recording cuts off 9 minutes before the end (in the middle of your questions). I've asked them to furnish us with the rest of it. We normally record it but didn't this time around.

[warbaby43] 12/11/2020 10:01

"You're more tenacious and organised than I"

Alas not so, Toon, just that I'm an old technophobe who does print-offs of significant stuff and then annotates where I've posted them so I can find them again.

Meanwhile, recording of call now on BLVN website:

[nufckk] 11/11/2020 08:52

My apologies Warbaby, I meant to thank you last night for looking that information up. You're more tenacious and organised than I.

[gark] 10/11/2020 17:22

Got a few today but not all me by any stretch. I am of the view we get there next year hence will be above 15-20p at some point in 2021.

[nufckk] 10/11/2020 16:32

Hey Gark, I didn't think you'd buy that many! Haha.
Warbaby. My wife did the call last year because I wasn't around and she managed to get back in again at the end. They didn't do that this year. Frustrating. I'm looking forward to the recording being uploaded to the Bowleven site as the old grey matter doesn't seem to compute at the speed it used to and I'm not sure that I heard what Happy Sparrow is saying he heard over on LSE.

[warbaby43] 10/11/2020 11:02

Toon, I think this is what you were after:

From COC's Open Letter to Shareholders dated 15th Feb 2017:

"It will be the responsibility of the proposed new Board members to determine the most beneficial,value maximising route for Etinde - be it accornpanying the development until full production, or adisposal along the way, upon the achievement of certain milestones (appraisal drills, FID, firstproduction). This objective can only be achieved through a constructive dialogue with and suppoftof the JV operator as well as the other partners.

Shareholders should be fully aware that a potential future disposal of Bowleven's stake in Etindewould be conditional on shareholder approval pursuant to AIM rule 15.

With Bowleven becoming an efficient, one-asset company with available tax losses to shelter future taxable income, we view it as a likely scenario that the final monetisation of Etinde would take placein the form of a corporate transaction, i.e. an offer to all shareholders by a third party.

For the avoidance of doubt, we have neither been approached by any third party about their intention to make a bid for the Company nor have there been any discussions with third parties about apotential sale of Bowleven's interest in Etinde. We however believe that a cleaned-up and focused business should become a highty attractive acquisition target in the future."

It was previously posted at 16818 and at 16817 COC express an "interesting" view on the issue of return of cash and development funding.

I too had many other questions but assumed there would be other holders putting them and didn't want to hog the time so was v disappointed that no one else came forward and that the call was wound up.

Given that finding a home for all that gas is a major issue, one of those questions would certainly have been re Ferrostaal (see my post at 18954) That project seemed to finally collapse in early 2018 over the issue of supply price of the gas but at that time there was still the expectation that the destination for all that gas would be FLNG. Now though, with the economics being liquids centred, I would have thought there could be much more flexibility on gas price requirement. I do recognise, however, that as the negotiations with Ferrostaal are in the hands of SNH, there might be other issues in play.

[kbrook] 09/11/2020 16:55

I don't recall them ever saying that they had no intention of taking us to production I think it was just the assumption of myself and others that they wanted a quick in and out with a large profit. That was also my hope alas we know how that went. I listened to the conference call sadly nothing new to inspire me. I will continue to hold to the death, hopefully not mine.

[nufckk] 09/11/2020 15:26

It would be interesting to see what price you can get Gark, I notice the spread is 32% at the moment. It's virtually like they don't want anyone to buy.
Me and my wife spent a fair amount of time trying to dig out a COC statement issued when they were trying to kick out the old board stating that they had no intention of taking us through to production. It's looking like we were just muddled up with what others were saying at the time because we can't find anything.
It'll be interesting to see if they reply to Warbaby's question about the first few drills.