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?

you have to wonder why 15 business days are now necessary given they have been waiting on the condition precedent of the gazetting of the decree for the best part of two months. Plenty of time to ensure all the contractual details were finalized and ready for signature.

'Cos we are talking about the Republic of Cameroon. I don't think anything happens very fast when African politics are involved.

StockMarketWire.com
Bowleven has completed the Etinde farm-out transaction and confirms it has received the initial $165m cash proceeds (excludes an estimated $5m working capital adjustment). The farm-out transaction comprised the sale of 30% and 10% interests in the Etinde permit to LUKOIL and NewAge, respectively, in return for a total consideration of approximately $250 million.

In addition to the $165m initial cash proceeds Bowleven will receive the following:
· An estimated $5 million cash to follow for working capital;

· Up to $40 million (net) carry for two Etinde appraisal wells, including testing;

· $15 million cash to be received on completion of appraisal drilling; and

· $25 million cash contingent upon and to be received at Etinde development project FID. The operatorship of Etinde has transferred to NewAge with Bowleven retaining a 20% non-operated interest.

The amount mentioned is well over the market cap of the company @ 33.75p is £104M, so one to look forward
profit taking at the moment as it wants to break, but the order book is heavy on the 34.25 and 34.50p offer

Barclays note:
"Our view: Completion of the Etinde PSC divestment confirms Bowleven’s relatively strong financial position, with cash in hand now exceeding the current ~$150m market capitalisation. Although the news was expected, we believe confirmation can provide some relief to investors increasingly wary of a sector where negative surprises have become a recurring theme during recent weeks.

Bowleven has now received the $165m cash in initial consideration due on the farm out of the Etinde PSC, offshore Cameroon, to Lukoil and NewAge. A further $5m is payable as a working capital adjustment. Bowleven is also to receive a carry through the two planned appraisal wells and $40m in contingent payments on completion of the appraisal campaign ($15m) and development FID ($25m).

Bowleven retains a 20% non-operated interest in the Etinde PSC. We expect an update on the forward plan for the asset alongside Bowleven’s Interim Results statement on Wednesday 25 March. We estimate deal completion gives Bowleven a pro forma End-2014E cash balance of $176m, placing it in a strong position to weather the current sector downturn. Our 46p/share Tangible NAV comprises this cash position (net of 2015-16E financial commitments), the proposed stage one development at Etinde and the outstanding contingent payments."

StockMarketWire.com
Africa-focused oil and gas explorer Bowleven posts a loss of $81.0m for the six months ended 31 December (H1 2013: loss of $6.6m) including impairments of $76.0m.

The impairment charge has been recognised following a review of the Etinde intangible exploration asset.

Given the current market backdrop, the group has reviewed the key commodity price and planning assumptions used in calculating impairment (further detail provided in notes to financials).

The review has conservatively considered the discounted cashflows of the fertiliser offtake solution only. The results for the period also include administrative expenses of $5.7m (H1 2013: $5.5 million). Finance income comprises mainly of gains of $0.6 million arising from foreign exchange movements on US cash balances under IFRS (H1 2013: loss of $1.3 million).

StockMarketWire.com
Bowleven has confirmed that drilling operations have started on the Zingana exploration well on the Bomono permit, onshore Cameroon.

The Zingana well is the first of two wells in the 2015 exploration programme. Zingana is located 20 kilometres north-west of Douala and will target a Paleocene (Tertiary) aged three-way dip closed fault block that was partially penetrated by shallow wells drilled in the 1950s. The well will be drilled to an estimated target depth of circa 2,000 metres.

The second well location, Moambe, just over two kilometres east of Zingana, has been prepared for drilling. The rig is expected to be mobilised to Moambe on completion of drilling and logging activity at Zingana. Testing is expected to be carried out (if appropriate) after the drilling and logging of both wells is complete.

As previously announced, the delay to the drilling schedule has been caused by the need to address certain mechanical and control issues with the rig fabric and equipment that were identified during rig-up. These issues related to the top drive and the mud pumping system and have now been resolved.

StockMarketWire.com
Bowleven has confirmed the start of drilling operations on the Moambe exploration well on the Bomono permit, onshore Cameroon. Moambe, the second well in a two well programme, is located just over two kilometres east of the first well, Zingana, and is a previously undrilled Paleocene (Tertiary) three-way dip fault block targeting multiple sands.

The well will be drilled to an estimated target depth of circa 1,620 metres MD. Further petrophysical evaluation on the Zingana discovery well is continuing and as planned the well has been suspended to enable future re-entry and testing. As previously announced, the intention is to drill, log and evaluate both wells prior to determining any testing plan.

Harrycat,
I am still positive about BLVN.
DO you hold these?
What's your views?

Let's hope the chairman designate has some experience in M&A. He should also trim Hart`s remuneration package. Should be tied to stock performance. He is grossly overpaid for the market cap of this company. Half his salary should be going to stock purchases until the share price has recovered above £1.

Yes I do.
My view: Despair! I have written these off. if it comes good, it will be a bonus.

Thank you. I am in a similar situation, holding from £1+

StockMarketWire.com
Africa focused oil and gas explorer Bowleven reports a loss of $90.0m for the year to the end of June - up from $13.6m last time.

The loss included an impairment charge of $76.0m following a review of the Etinde intangible exploration asset. Given the current market backdrop, the group has reviewed the key commodity price and planning assumptions used in calculating impairment (further detail provided in notes to financials). The review has conservatively considered the discounted cashflows of the fertiliser offtake solution only.

The results for the year also include administrative expenses of $11.9 million (2014: $12.0 million). Finance costs comprise mainly of losses of $2.4 million arising from foreign exchange movements on US cash balances under IFRS due to the parent Company's functional currency being GB pounds. (2014: loss of $1.7 million). The Group's current G&A charge (gross) is estimated at around $1 million per month (previously $1.5 million). Managing and reducing G&A costs continues to be a priority for the Group and further cost saving initiatives are being implemented. On completion of the Etinde farm-out transaction in March 2015, the Group received $165 million in cash and a subsequent $5 million cash for working capital. $9 million was paid to Petrofac for the termination of the previously announced Strategic Alliance Agreement intended to facilitate the development and funding of Etinde on a stand-alone basis. Capital expenditure cashflows during the period were $35.1 million (2014: $18.0 million). This relates mainly to expenditure incurred preparing for and drilling two exploration wells on the Bomono Permit, as well as activity on Etinde and on block 11B, Kenya (which is primarily covered by First Oil funding). As outlined in the Bomono update, operations were impacted by contractor non-performance, both prior to and during the drilling programme, and discussions are ongoing with the service providers regarding the recovery of a proportion of additional expenditure incurred. At 30 June 2015, Bowleven had $145.3 million of cash and bank deposits and no debt (2014: $25.5 million and no debt). The Group has no remaining work programme obligations following the completion of the two well exploration commitment on Bomono.

looks like one to short as surely only heading for the dustbin .... and no, i shall not be taking a position

Harrycat,
What is the outcome? worth holding?
what do you think?

Edit: Oops just seen Cynic opinion.

my opinion may neither be the same as harry's nor even correct :-)

I understand. That's your opinion.
I am worried, still holding quite a lot...

oh .... that's not good to hear :-(

in that case, ask yourself why, if the likes of PMO and TLW are struggling badly, and they are both "proper" companies with real producing assets, this minnow e+p (BLVN) should (ever) recover, especially as crude looks set to be depressed for at least the next 18 months - some say much longer

My opinion in post #350 still stands. With the price of oil sub $50, BLVN are drilling for a non-profitable asset. Anything over $60pb then my opinion might change. I have a small amount of these.......certainly wish I hadn't!

Thank You. I don't like the speed of burning cash ....
I accepted the loss.