Half-year results from Africa-focused oil and gas explorer Bowleven (BLVN) revealed a further six-month delay to the development of its Etinde gas and liquids project in Cameroon. Chief executive Kevin Hart says a final investment decision is now due "more likely around the year-end", rather than prior guidance of around the mid-year - before that it was scheduled for end-2013. First production has, therefore, been pushed back to 2017's first half at the earliest.
Management said the delay was down to the Cameroonian authorities taking longer than expected to process Etinde's exploitation authorisation application (EAA). But Mr Hart says the "process is almost complete with an [EAA] award anticipated shortly". Meanwhile, Bowleven continues to progress its gas sales agreement with German partner Ferrostaal, which hopes to build a fertiliser plant fired by Etinde gas. Bowleven also continues to seek a partner to pay for drilling on its Bomono permit. If Bowleven doesn't drill a well there by the year-end, however, it must pay a penalty of $16m (£9.6m).
Analysts at Bank of America Merrill Lynch caution that Bowleven may have to raise additional finance "to maintain a safety net" should the $60m payment for well back-costs from joint venture partner Petrofac (PFC) be delayed into 2015.
BOWLEVEN (BLVN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 29p | MARKET VALUE: | £93m | |
| TOUCH: | 28.5-29p | 12-MONTH HIGH: | 101p | LOW: 28p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 182¢* | NET CASH: | $38m | |
| Half-yearto 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | nil | -9.4 | -3 | nil |
| 2013 | nil | -6.6 | -2 | nil |
| % change | - | - | - | - |
£1=$1.66 *Includes intangible exploration assets of $543m, or 167¢ a share | ||||
