RNS today gives BowLeven's interim results and highlights the following:

RNS Number:2495ABowLeven Plc23 March 2006 BowLeven Plc23 March 2006

BowLeven Plc ('BowLeven' or 'the Company')
Interim results for the six months to 31 December 2005
Bow Leven, the Cameroon-focused oil & gas company listed on AIM, today announces its interim results for the six months ended 31 December 2005.

Highlights include:
* Cash of #62 million
* 3D seismic survey underway on blocks MLHP 5 and MLHP 6 of Etinde permit
* Reserves of 60.3 mmboe remain in place
* Four well drilling programme being prepared for early 2007
* Loss for the period #0.7 million
* Concentration on original strategic plan including implementation of Gas To Electricity ('GTE') Plant in Cameroon


At today's offer price of 195p, the company is valued at 57.7 million. However, they claim to have audited Resources consisting of 60.3 mmboe of Reserves and 58.2 mmboe of Contingent Resources. There is supposed to be a copy of the auditors' report on the website but I can't find it (UPDATE - have now requested this via e-mail) (NEW UPDATE - I never got a reply but the auditors' report can be found in the AIM admission document).

BLVN also has 60 million in cash, which ought to more than see it through its next lot of drilling.

This, however, is scheduled for 2007, which may be one reason why the SP is held back. But to me it still looks cheap. It is almost certainly oversold after the announcement of bad news in the latter half of last year.

Does anyone else have any thoughts on this?

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thanks for your time

up 3.25p yesterday and up 3.5p so far today. unbelievable.

BLVN Bid: 178p Offer: 180p Change: 3.5

When I wrote my earlier post I was struggling to contain my sarcasm, but now this has roared up 7% today.

BLVN Bid: 188.25p Offer: 192.75p Change: 12.75

Has anyone heard anything?

Closed up 11%: BLVN Bid: 193p Offer: 197.25p Change: 20 and my holding is finally in profit!!

Is the run likely to continue tomorrow? The chart looks encouraging.

Making slightly heavier weather today, but the Offer Price has breached 200p, and with a wider spread it appears the MM's are trying to force a few sales. One or two big purchases of 100K went through at 199p though.

The current position: BLVN Bid: 195p Offer: 203p Change: 0.5

Gave up 4 or 5p on Friday, but up again today on turnover of about 60k.

BLVN Bid: 194.75p Offer: 198p Change: 6.25

In post #10, I estimated the company's value: cash balance near to 60 million, plus Resources alone of 60.3 million bbl (leaving out the Contingent Reserves), risked at 10% using $40 a barrel, should be worth 137 million, total NAV 197 million. In spite of this the company's market cap remains around 58 mil (at today's SP of 197p)

Since then I've thought about the maths some more and in view of current oil price strength, on a very optimistic view one could use $60-oil for Resources of 205 million, plus the cash = total 265 million.

Use even a more conservative $50/bbl and you get 231 mil. That's 4 times current market cap. Nearly 8 a share . . . Oh, and you could throw in the P50 contingent resources of 58.2 mmboe for another 166 mil or 550p per share, but we're trying to be conservative and sensible in our estimations, so we won't.

I'm not barking mad, am I?

PDYOR/IMO, etc.

EDIT The scores at close of play today: BLVN Bid: 195.5p Offer: 198p Change: 7.25 Shares moved: 100,955

The Investor's Chronicle of 31st March said that the SP was "high enough" at 178p. Although the SP is up since then, it seems most are reluctant to disagree too much.

Am still umming and aahing about what to do with this one.

A nice bit of a tick-up today, up 2.5p. The day-to-day upwards movements seem to be bigger than the downs at present, which is encouraging.

Am now committed to selling at least two-thirds of my stake in this one to cover other recent trading, but am considering hanging on til next week to see if we can top 200p.

Soul traders I much prefer the Moneyam BB as it's (relatively) free of the dross you get on ADVFN, however have you looked at the comment over there on this stock? All very bullish for the reasons you've disclosed. I personally believe this is set to rocket and am building as oppose to reducing my stake. I think it somehow seems to have been overlooked, probably because of its ghastly record last year, however I have great faith it will come back, the downside is hardly there and the upside potential collosal. Look at the other oil and gas companies and you can see how it compares. As close as you'll get to a no brainer, and 100p easily given a little time. It's already uptrending, and I'm already heavily in profit and compounding my position. Good luck!

Good stuff Chiva20, thanks for the info -will take a look at the other BB.

However, I'm increasingly inclined to look elsewhere as I'm seeing other co's with wider potential. MOG comes to mind - the latest oil-in-place estimates are awesome, assuming they are trustworthy.

It's a toughie - wish I had about twenty grand of free cash to splurge on the latest hot prospects, but I'm going to have to box clever and be patient!

Thanks Soul I've put MOG on the watchlist looks like a great find. Now where's that 20k? ;o)

Hi Chiva, no worries. Actually MOG didn't rocket away in quite the way I had anticipated, but that's investing for you. I am now out of BLVN with a small profit, having spent the bulk of the proceeds on EOG Warrants but will keep an eye on BowLeven for the future. I think my shopping is at an end now as I need to sit back patiently for a while and let some of the potential multi-baggers do their thing.

Good luck, etc.
ST

Soul
I reckon the sp of this stock is low because of the awful reputation the mgt has in running the business.....also attempting to line their own pockets thru an abortive rebasing of options which got bombed out by the major stockholders
As far as the prospects are concerned.....
the sp hs no premium for the potential for finding oil.....which is quite bizarre given the proven reserves were independently assessed

The sp does not even reflect the increase in oil prices over the past 6 months
The next RNS will almost certainly be one of the following........
.......Out of court settlement with sacked CEO Rhind
.......Out of court settlement with former farm in partner suing for return of $3m investment
.......Update re discussion with Cameroon gov re gas / oil power station contract
.......Announcement of deal on farm in partner
.......Resignation of one or more (already discredited) Directors
.......Sale of the Co to a 3rd Party with proven expertise in oil exploration
Most of these Rns announcements will have a positive impact on the sp hence this is a very good stock to get into around 180p where it is covered by cash in the bank
Indeed there is every likelihood that the sp will rise to well over 200p following a positive RNS

Goosy, your crystal ball is quite clearly a lot less cloudy than mine - SP up today:

BLVN Bid: 205p Offer: 207.75p Change: 15.25

No particular news around, though, so I guess this is just the realisation that it's oversold.

Including by me, cos I'm still out, having whipped all my stake and profits into something else!

Nice advances in the SP in recent days on the back of news of a new CEO being appointed. Was tempted to drop my VOG holding and swap it for some BLVN but am not sure if VOG has much further to drop. BLVN should continue to rise though?

All IMO, PDYOR.

Soul
I think the recent rise in BLVN reflects improved credibility of Co on the back of a respected FD agreeing to join...........Also if you consider the issues which will have formed much of the early discussions with Kevin Hart you can`t help concluding that he also reckons the sp is grossly undervalued and could rise substantially under his leadership............
The break up value of the business must be around 100m without drilling another well.......
c50m cash pile...if not earning much wherever it has been invested...short term
c 30m farm in deal for say a 30% stake
c20m...for reserves already proven and currently the subject of negotiations with the Cameroon Gov re a Gas /Oil Contract to fuel an existing onshore Power station
ie around.........360p /share
Also
most oil Cos have an "intangible" premium in their sp of up to 30% for yet to be discovered oil..........BLVN have nothing due to their poor mgt reputation and two dry wells
Add this in and you get a number in excess of 450p.......
So will the sp carry on rising,,,?
I suspect it will fluctuate up and down in ranges up to 5% with the ups outweighing the downs over the week and the sp climbing steadily to 300p by the time Hart arrives in the autumn.........DYOR

Goosy, a good post, thanks.

At last: an RNS confirming that Kevin Hart will be joining BLVN on the 17th November, and I see that he's bringing with him Cairn's leading bloodhound, Ed Willett in the new year. They also announce an immediate change of broker, to Hoare Govett, who is Cairn's advisor.
The market seems to be reacting favourably and it may well be helped further if some of HG's clients are encouraged to come aboard. Let's hope there is some oil to be found in Cameroon.

At last: