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Bowleven receives initial USD 165m cash payment from Lukoil and NewAge for Etinde farm-out

17th March 2015

Bowleven has announced the completion of the Etinde farm-out transaction in Cameroon and confirmed receipt of the initial USD 165m cash proceeds

Bowleven has announced the completion of the Etinde farm-out transaction and confirmed receipt of the initial USD 165m cash proceeds
The operatorship of Etinde has transferred to NewAge with Bowleven retaining a 20 per cent non-operated interest

The farm-out transaction comprised the sale of 30 per cent and 10 per cent interests in the Etinde Permit to Lukoil and NewAge, respectively, in return for a total consideration of approximately USD 250m.

“We are delighted the farm-out transaction to Lukoil and NewAge has completed,” said Kevin Hart, chief executive of Bowleven. “The resulting consideration of cash and carry, together with the expanded and strengthened joint venture, will enable the progression of appraisal and development activities on Etinde.”

In addition to the USD 165m initial cash proceeds Bowleven will receive an estimated USD 5m cash to follow for working capital, up to USD 40m (net) carry for two Etinde appraisal wells, including testing, USD 15m cash to be received on completion of appraisal drilling, and USD 25m 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 per cent non-operated interest.

“Planning for the appraisal drilling on the Intra Isongo is already underway with locations for the two wells nearing finalisation,” added Hart. “With a carry in place to cover our share of drilling and testing we are looking forward to appraising this exciting reservoir interval.

“Against a challenging market backdrop our strengthened balance sheet following the transaction puts us in a strong position.”

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