Bowleven Gets $15 Million as Part of Etinde Farm-out Agreement

By Alex MacDonald

LONDON--Bowleven PLC(BLVN.LN), the Africa-focused oil and gas explorer, said Monday it has received $15 million from Lukoil PJSC (LUKOY) and NewAge (African Global Energy) Ltd. as part of a deal entered into last year to fund the development of the offshore Etinde gas field in Cameroon.

Bowleven agreed in March 2015 to sell 30% and 10% stakes in Etinde to Lukoil and NewAge respectively, in return for $250 million, thus reducing Bowleven's stake in the field to 20%.

Bowleven received an initial $165 million up front for the deal and up to $40 million in expenses covered to carry out the drilling of two appraisal wells on the site. Bowleven was then entitled to receive a further $15 million upon the completion of appraisal drilling and is still entitled to another $25 million once the final go-ahead is given to develop the project into a commercially viable operations.

As part of the deal, Bowleven transferred operatorship of the project to Newage.

Bowleven shares were up 4% at 26 pence a share in morning trade in London, resulting in a market capitalization of GBP85 million ($109 million).

-Write to Alex MacDonald at [e-mail]

(END) Dow Jones Newswires

October 03, 2016 03:26 ET (07:26 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.