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?

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.

i'm sure that was the right move though i'm terrible at obeying same on my own stocks

That's very normal, the same for me.... I usually wait until too late.
Today, I sold from 25.4 to 23.6. Last 22.5k junk at 24.4.

"Bowleven (BLVN) has announced that, following the installation of testing equipment, the Moambe well has now commenced flowing hydrocarbons.

The extended well testing programme at Moambe is planned to determine the productivity and connectivity of the shallower reservoir units.

It is intended that these reservoir units will provide the basis for the initial supply of gas for power generation under a development scheme formulated with Actis and Eneo in Cameroon".


I assume that the mention of flowing hydrocarbons, while hardly truly informative, must mean significant flows. If insignificant, why mention at all?

conversely, if they were significant, why wouldn't they holler it from the rooftops?
perhaps insignificant is better than a dead duck!

StockMarketWire.com
Bowleven is pleased with initial flow test results from the extended well test programme under way at the Bomono permit in Cameroon. To date, the Moambe well has achieved a maximum stabilised flow rate of 7.3 mmscfd through a 48/64 choke with a flowing well head pressure of 664 psig with no signs of depletion during the initial test period. As a result of this success, the well has now moved into the planned extended test period. This is intended to confirm sustainable deliverability to a proposed gas-to-power development scheme.

Initial indications are that under such a development scenario the Moambe well would be capable of delivering around 4 to 5 mmscfd. Meanwhile, as testing continues at Moambe, we continue to progress plans to commence extended well testing at the Zingana well. Further update announcements will be made in due course.

Chief executive Kevin Hart said: "We are pleased with the positive initial flow test results on Moambe which give us increased confidence in the commercial viability of future development plans at Bomono. We look forward to the Zingana test augmenting the results at Moambe and to progressing gas sales negotiations."

StockMarketWire.com
Bowleven, the Africa focused oil and gas exploration group, has submitted the Bomono exploitation authorisation application to the Cameroon authorities as planned. The BEAA outlines plans to develop Bomono following completion of the ongoing extended well testing programme.

StockMarketWire.com
Bowleven said the extended flow testing programme at Moambe and Zingana is now complete. The results to date continue to support plans for an initial supply of around 5 to 6 mmscfd of gas for power generation under a development scheme formulated with Actis and Eneo in Cameroon.

As outlined in the Bomono Exploitation Authorisation Application (BEAA) submitted to the Cameroon authorities in December 2015, this initial development scheme is focused on the provision of feedstock for power generation from the shallower gas-prone sands.

The block-wide evaluation of these sands and the additional potential of the deeper sands that were also targeted with the wells are ongoing.

The results of the combined tests provide the confidence required to progress with the gas sales agreement and development planning, consistent with plans to deliver initial near-term production alongside the continuing evaluation of the acreage.

StockMarketWire.com
Bowleven has confirmed that it has decided not to pursue its interest in the proposed acquisition from Aminex of a 25% interest in the Kiliwani North Development Licence and a 50% interest in the Ruvuma PSA, in Tanzania, following the completion of due diligence.

Interim Results Announcement
Bowleven, the Africa focused oil and gas exploration group traded on AIM, today announces its interim results for the six months ended 31 December 2015.

HIGHLIGHTS

Operational
Bomono
· Moambe and Zingana extended well tests completed and wells now suspended pending ongoing evaluation.
· Bomono Exploitation Authorisation Application (BEAA) submitted to the Cameroon authorities based on an initial in-situ small scale gas to power development.
· Discussions commenced with potential gas offtakers and MOU entered into with ENEO.

Etinde
· Two appraisal well locations agreed with our partners targeting combined additional in-place volumes of approximately 1 to 2 tcf of gas and associated liquids.
· Well design and planning underway with tendering anticipated in 2016 to exploit low cost/high rig availability operating environment.
· Ongoing operator evaluation of development options based on LNG, power and fertiliser gas offtake solutions.
· Operator-led discussions ongoing with Government on the potential to advance the Etinde development through an offshore processing facility.

Other
· Rationalisation of portfolio in current environment to align with strategy.
· Focus on near-term production and infrastructure-led exploration.

Corporate
· Group cash balance at 29 March 2016 circa $100 million; no debt. No outstanding work programme commitments.
· Under Etinde transaction a further $15 million cash receivable at end September 2016 with access to a $40 million (net) carry for two appraisal wells, including testing.
· $133 million impairment following prolonged market downturn; reflects revised commodity price ($65 per bbl) and planning assumptions on existing asset portfolio.
· Intensive screening of multiple new venture investment opportunities is continuing; capital disciplined approach maintained.

OUTLOOK
Key objectives for the next 12 months include:
· Working with the Etinde joint venture partners to enable earliest appraisal drilling and testing, together with the evaluation of additional offtake solutions and the progression of Etinde development planning.
· Securing the Exploitation Authorisation (EA) for Bomono to enable progression towards early development.
· Advance development planning, gas sales discussions and acreage evaluation on Bomono post drilling and testing activity.
· Active screening of new ventures opportunities to augment the Group's existing asset base and build sustainability through entry into producing or near-term producing assets and infrastructure-led exploration.
· Protect balance sheet strength by maintaining a disciplined approach to the consideration of further investment opportunities.

Kevin Hart, Chief Executive Officer of Bowleven Plc, said:
"We have continued to make steady progress towards our objective of converting resources to reserves in Cameroon. An Exploitation Authorisation Application was submitted to the Cameroon Authorities to enable development progression following the completion of drilling and testing activities at Bomono and meanwhile planning and evaluation work is continuing.

On Etinde, appraisal drilling and advancing development plans remain the focus under the operator, NewAge. With planning underway and tendering expected to follow, the joint venture is ideally placed to exploit the current environment of reduced costs and higher rig availability, with appraisal drilling expected to commence in 2017. Bowleven is covered for its share of drilling/testing on the two wells via the $40 million net carry from the Etinde farm-out transaction and will receive a further $15 million in cash in September 2016.

The macro-economic environment of prolonged lower oil prices has had sector-wide repercussions. The Group's strong balance sheet of circa $100 million in cash and no debt or outstanding work programme commitments means it is well positioned to manage the challenges faced by the industry and to exploit opportunities as they arise. As the downturn persists the number of potential opportunities is increasing. Whilst the evaluation of such opportunities is time-consuming, we continue to exert a rigorous screening approach when assessing potential value-creating transactions for shareholders whilst ensuring that our key differentiating feature of balance sheet strength is maintained.

We are optimistic that portfolio enhancing transactions can be identified and delivered alongside the progression of our existing asset base and look forward to making further progress in the coming year."