BowLeven (BLVN), the Africa-focused oil and gas exploration group, revealed a full-year operating loss of $12m (£7.6m). But its focus remains on the completion of the farm-out process at the Etinde shallow water permit in Cameroon.
Administrative expenses were slightly up on last year at $12m, while Bowleven also took a $1.7m foreign-exchange hit on its US cash balances. Capital expenditure outflows during the year came in at $18m, against $109m for the 2012-13 financial year. Almost all the capital was spent on exploration and appraisal activities, primarily pre-development work on the Etinde permit and drilling preparation on the Bomono prospect, located in the onshore extension of the Douala Basin in Cameroon.
Ahead of the farm-out receipts, however, the current rate of cash-burn isn't a problem. At the end of last month, BowLeven still had $14m in cash and an undrawn bridge facility of $30m. Earlier this year, the company reduced its interest in the Etinde permit to 25 per cent through an equity farm-out agreement with the Lukoil/New Age partners. That will net Bowleven an initial payment of $170m, with another $80m to follow in deferred payments and drill funding. The money will help BowLeven appraise the Intra Isongo reservoir interval to realise the full potential of Etinde.
Broker Westhouse Securities gives a target price of 115p a share.
| BOWLEVEN (BLVN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 33p | MARKET VALUE: | £105m | |
| TOUCH: | 31-32p | 12-MONTH HIGH: | 58p | LOW: 24p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 181¢* | NET CASH: | $25.5m | |
| Year to 31 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | nil | 19.5 | 10 | nil |
| 2011 | nil | -76.8 | -37 | nil |
| 2012 | nil | -13.1 | -5 | nil |
| 2013 | nil | -11.1 | -4 | nil |
| 2014 | nil | -13.6 | -4 | nil |
| % change | - | - | - | |
Ex-div: - Payment: - *Includes intangible assets of $551m, or 170¢ a share £1=$1.59 | ||||
