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?

Reuters
LONDON, Feb 17 (Reuters) - Oil firm Dragon Oil (Xetra: 877789 - news) said it was considering making a takeover offer for Bowleven (LSE: BLVN.L - news) , a British company with assets in Cameroon, in a move which would form part of a long-stated plan to expand beyond its Turkmenistan production base.

"Dragon Oil notes the recent movement in Bowleven's share price and confirms that it is in the preliminary stages of exploring a possible offer for all of the issued and to be issued share capital of Bowleven," Dragon said in a statement on Friday.

Shares in Bowleven soared 65 percent to 122 pence at 1150 GMT, on news that Dragon was considering an approach, exceeding earlier gains of around 18 percent on takeover rumours before Dragon announced its interest.

Dubai-headquartered Dragon has expressed its intention over the last year to expand its reach beyond Turkmenistan, where 100 percent of its production is based.

Analysts at Bank of America Merrill Lynch said on Wednesday that the company would look to use its $1.4 billion cash pile to make acquisitions while management have indicated that they would look at deals in the range of $200 to $500 million.

At 122 pence per share Bowleven, which has discovered an oil field off the coast of Cameroon, has a market capitalisation of 359 million pounds. (Reporting by Sarah Young; editing by Rhys Jones)

Pretty obvious that DGO reckon that a very large oil accumulation lies in that Sakele well and all over that area....

Dragon Oil mulls Bowleven takeover 12:21 pm by Jamie Ashcroft Dragon is currently a single asset company. It produces over 70,000 barrels of oil a day from the Cheleken production sharing contract in the Caspian Sea. Africa focused oil firm Bowleven (LON:BLVN) soared over 80 per cent today as Dragon Oil (LON:DGO) confirmed it was mulling a bid for the company. Cash-rich Dragon has been on the acquisition trail for some time, however up until now it has kept its cards close to its chest and no major deals have been struck. In a brief stock exchange statement Dragon confirmed it was in the preliminary stages of exploring a possible offer for Bowleven. Dragon is currently a single asset company. It produces over 70,000 barrels of oil a day from the Cheleken production sharing contract in the Caspian Sea. A major expansion programme aims to grow production beyond the 100,000 barrel a day mark by 2015. This production gives the group strong cash flow and puts it in a strong position when it comes to jostling for M&A targets. Its current balance sheet is very strong with around US$1.5 billion cash in hand. Bowleven owns a portfolio of exploration assets in Cameroon and Gabon. At 12:20, Bowleven shares were up 59p, or 80 per cent, trading at 133.5p each. Dragon shares were relatively unmoved by the news

Undervalues the assets imo.

Bowleven (LON:BLVN) jumped 70% to 130p in trading today, after Dragon Oil (LON:DGO) announced it was considering a bid for the company. The market it still expecting the results of a volumetric study, that was announced back in November of last year, and any bullish results could potentially have a material impact on the price Dragon would have to pay. It will be interesting to see the view of the weekend press as to the price of any possible bid here, as the shares have fallen a long way from the 414p high of last year. Some of the potential prices being mentioned so far are 200p/220p but these are just purely market chatter at this stage. One important note to remember here is that a number of large institutions backed the company during a recent fund raise at 103p, and I am sure they would want a substantial premium before giving up shares they have stayed loyal to and seen trading as low as 59p.

Read more: http://oilvoice.com/tw/ed430414c294.aspx#ixzz1mem7aRwU

Jeffries:

Dragon Oil (DGO LN) confirmed it is in preliminary stages of considering an offer for a corporate acquisition of Bowleven. There is no certainty an offer will be made.Under the City Code, Dragon Oil must make an offer by March 16 or walk away for 6 months. Bowleven is the only stock in our universe trading below our estimated core asset value and we see this approach as confirming our belief in the undervalued potential of its assets.
Core value 187p/sh, total risked sum of parts 221p/sh, additional value potential for better funded player. We estimate the value of Bowleven’s core assets (IE, IF and Sapele fields plus cash) is 187p/sh or $892m (including $196m in cash/EOV disposal
proceeds and estimated value of Vitol’s carry). Including additional value for exploration upside, we estimate a total value of 221p/sh (using $85/bbl oil price and 10% discount rate).
We note that we carry both the discovered and undiscovered resources at higher riskings due to Bowleven’s funding situation. We estimate the unrisked value of its core assets is 302p/sh (no value for exploration).
Dragon Oil well funded to buy Bowleven, all-cash deal possible. Dragon Oil reported cash and cash equivalents of $1.47bn and no debt on June 2011. Net cash generated from operating activities was $417m with $216m in capex for the first half of the year. We believe this leaves Dragon Oil well positioned to make an all-cash or substantially cash with an optional share election offer. In its 1H11 interim results call, it stated it was looking for diversification and to utilise its cash for acquisitions in the MENA region, preferably with a small amount of production with additional exploration upside.
Deal not assured – March 2009 is a valuable reminded. Bowleven has been through this publicly before, in March 2009 when it announced a possible offer for 150p/sh (18 March). This was then reduced to 100p/sh (27 March) before the company stated it had ceased discussions with the potential buyer and would continue to work on the assets as an independent entity (7 April). The company then raised equity and farmed-in Vitol to help fund exploration and appraisal. Management has made no comments about its planned response to a potential bid from Dragon Oil.
Trading up materially intra-day, still below our Core NAV. Bowleven is currently
trading at 121p/sh, a 35% discount to our Core NAV. If we assume Dragon is willing to pay for Bowleven’s exploration acreage, it could offer up to 221p/sh based on our risked sum of the parts.
If not Dragon, then what? We believe there are other companies that could be interested in Bowleven’s assets, and Dragon’s move may have “put it into play” for other potential buyers such as other operators in Cameroon (including Kosmos Energy (KOS US, $14.40, Buy) or Perenco (Private)). While short-term downside is possible if Dragon walks away without a bid, we believe this approach highlights Bowleven’s assets were undervalued by the current market price.
We maintain our Buy recommendation and 195p/sh price target based on our estimated value of its Core Assets. Short-term risks now revolve around the potential Dragon Oil bid situation. In the long term, key risks are financing its development and securing a viable development plan for its assets in Cameroon.

Guardian blog...

There was also some takeover excitement, albeit lower down the market.

In the Chinese year of the Dragon which has just started, oil explorer Bowleven has found itself in the sights of a rival named after the mythical beast. Shares in the company, which has projects off the coast of Cameroon, jumped 46p to 120p or 62%, as Dragon Oil revealed it was considering an offer for the company. If the move was successful it would allow Dragon, which has around $1.5bn of cash in the bank, to expand from its core activities in Turkmenistan.

Traders were talking of an offer of around 180p to 200p a share.

There is also the prospect of an auction.

Bowleven has been linked with a number of companies in the past, including Chevron and - immediately before Dragon showed its hand - Tullow Oil. Dragon ended 3p higher

Telegraph...

Bowleven soars as Dragon mulls bid

Oil and gas explorer Bowleven saw its shares jump more than 60pc on Friday after Dragon Oil announced it was considering a takeover bid for the West Africa-focused company
Dragon, which is controlled by Dubai's state-owned Emirates National Oil Company (ENOC), declared its interest after Bowleven shares had already risen 17pc on the back of market gossip that Tullow Oil was a potential suitor.
"Dragon Oil notes the recent movement in Bowleven's share price and confirms that it is in the preliminary stages of exploring a possible offer," it said. "There can be no certainty that any offer will ultimately be made or the terms or timing on which any such offer would be made."
Dragon has until March 16 to declare whether it has a firm intention to make an offer or not.
Shares in the Aim-listed Bowleven rose as much as 82pc before settling to close at 120p, a rise of 46 on the day.
Edinburgh-based Bowleven traded as high as 398p in January last year, before a series of disappointing drilling updates on discoveries in Cameroon, West Africa, saw its value plummet.

It is also yet to develop the discoveries it has made into production, which it has said will require at least $400m (£253m) investment.

Analysts at Citigroup said: "Bowleven will require additional funding to meet its share of development [capital expenditure] over the life of its Cameroon fields.

"The sourcing of this additional finance remains challenging in the current market environment."

Bowleven's market value last night stood at £353m, up from £218m at close on Thursday.

Analysts at Jefferies said: "Bowleven is the only stock in our universe trading below our estimated core asset value. If we assume Dragon is willing to pay for Bowleven's exploration acreage, it could offer up to 221p per share, based on our risked sum of the parts."

Dragon had cash reserves of $1.5bn at the end of last year and has made clear its intention to diversify its business, which is currently focused offshore Turkmenistan. Last year it joined a project in Tunisia.

The company is listed in Ireland and London but 52pc of its shares are owned by ENOC. Dragon Oil shares rose 3 to 547p.

Most of Bowleven's biggest shareholders are institutional investors such as BlackRock, F&C Asset Management and JP Morgan.

Bowleven's chief executive, Kevin Hart, owns more than 2.5m shares in the company.

http://af.reuters.com/article/energyOilNews/idAFL5E8DH2IT20120217?pageNumber=2&virtualBrandChannel=0


Bowleven has made a series of oil discoveries off the coast of Cameroon, none of which have to date been developed, meaning it does not have production.

Its primary oil fields are known as MHLP-7 and Sapele. While the company has a development plan for MHLP-7, its understanding of the Sapele asset is not as well advanced.

The value of any takeover approach Dragon launches will likely hinge on how it views Sapele.

"If you're Dragon you might think I'm willing to pay for MHLP-7, where we can hopefully get production up and running relatively quickly, and then I get Sapele and exploration for free," Canaccord Genuity analyst Braden Purkis said.

Should Dragon look to only pay for MHLP-7, a bid in the range of 150 pence to 160 pence would make sense, said Purkis. A 155 pence per share offer would value Bowleven at about 456 million pounds ($718.1 million).

Tullow Oil, another London-listed oil firm, was on Friday rumoured to be lining up a bid for Bowleven before Dragon made its announcement.

"Those assets (of Bowleven's) are probably a better fit for a bigger company with a stronger balance sheet like Dragon," said Aliyev.

many a slip etc etc, so unless already a holder, a dangerous move to buy in now

Scotsman.com
By PERRY GOURLEY
Published on Saturday 18 February 2012 00:00


MORE than £130 million was added to the value of Edinburgh-based oil explorer Bowleven yesterday ahead of a possible £600 million takeover offer for the company.


City speculation that the Scottish firm was being stalked saw heavy trading in Bowleven’s shares before Dragon Oil issued a statement confirming it was exploring an offer. Tullow Oil, another UK-listed oil firm, had been rumoured to be lining up a bid for Bowleven before Dragon made its announcement.

Dragon, which is 52 per cent owned by Dubai’s Emirates National Oil Company, is known to be keen on widening its current focus on Turkmenistan and has built up a war chest for acquisitions on the back of increased production and a higher oil price.

Bowleven, headed by chief executive Kevin Hart, has made a series of oil discoveries off the coast of Cameroon, although none have so far been developed.

The company’s main interests are the MHLP-7 oil field, where a development plan is in place, and the Sapele oil fields where progress is less advanced.

Analysts believe an offer for Bowleven could reach over 200p ,with Steven Asfour at Fox-Davies pointing out that the shares had fallen a long way from the 414p high seen last year. “One important note to remember here is that a number of large institutions backed the company during a recent fund raise at 103p, and I am sure they would want a substantial premium before giving up shares they have stayed loyal to,” he said.

Bowleven’s largest shareholders include Blackrock, F&C Asset Management and JP Morgan Asset Management. Its directors are also significant shareholders, with Hart owning 2.56 million shares – worth more than £3m at yesterday’s closing price.

Oriel Securities analyst Vugar Aliyev said an acquisition of Bowleven would represent a major strategic change for Dragon and he viewed the potential deal as neutral to slightly negative.

"If they spend $700 million on the company and then another significant portion of their cash developing it, then I would be concerned," he said.

So he thinks it would go for £1.50, it would suggest that at £2.00 that might start to stretch Dragons cash reserves....unless there is paper in the offer.

Job to guess what is going to happen...I was surprised by the number of sells on friday...or perhaps that were limit orders going through....and it shot up only to trickle down a bit during the day....we'll see what happens on monday....

Surprised that this has not climbed to 140p or so.....if it is going to be taken out....150p minimum or more, perhaps 180...perhaps 200 or 220p.......so 120p looks way off the mark !.

I agree 140p minimum.

Just will not climb, though it's early days...more buys than sells....I'm surprised that we are not seeing 140p now....

because talk of a bid, and the hype that always attaches, and the actuality of one being tables, let alone concluded, inevitably gives the prudent a chance to cash in some good profits, and perhaps buy back cheaper in due course - look at XEL!

Going long on both.....took profits on friday....but hey !...new week....both should be much higher : WTI nearly $106 us dollars and Brent $120 plus...

think your clutching at straws rf.,.