AUS
NZ
UK
CA
USA
IND
Bowleven PLC (LSE:BLVN), a UK-based oil and gas company with a focus on Africa, has announced its intention to delist from the AIM market and re-register as a private company. This decision follows stalled progress on its key project in Cameroon, where it holds a 25% interest in the offshore Etinde Permit.
Project Development Challenges
The company has been collaborating with joint venture (JV) partners to advance the development plan for the Etinde Permit, with the goal of reaching a final investment decision (FID). Achieving this milestone would have entitled Bowleven to a significant payment. However, progress has been hampered by delays, particularly after the planned sale of a major stake by JV partner New Age was called off in January 2024.
Financial and Operational Impact
Due to these delays and financial uncertainties, Bowleven has had to secure additional funds to cover operational expenses through mid-2025. The level of activity at Etinde remains limited as a result. The board determined that delisting from AIM was in the company’s best interests due to high costs, regulatory challenges, and low liquidity of its shares on the market.
Rationale for Transition to Private Status
Transitioning to a private company status is expected to reduce costs and offer greater access to specialized investors, thereby providing more strategic flexibility. This move is aimed at supporting the Etinde Permit development and securing necessary funding. Despite the change, Bowleven remains dedicated to its long-term goal of becoming a major oil and gas producer in Cameroon.
Future Plans and Timetable
Bowleven will continue to fund its share of the Etinde project and work with JV partners to achieve the FID. The company views the Etinde asset as valuable and integral to its strategy. The proposed timeline includes a general meeting on 28 August 2024, with the final day of AIM trading scheduled for 23 September 2024.
Exit Opportunity for Shareholders
Crown Ocean Capital, a major investor, will offer an "exit opportunity" to minority shareholders, with a proposed payment of 0.225p per share for those choosing to sell before the delisting. Payments for early tenders are expected by 11 September 2024, with the final cancellation set for 24 September 2024. The re-registration as a private limited company is anticipated by 25 September 2024.
CEO's Comments
Eli Chahin, CEO of Bowleven, stated that the board believes the Etinde project remains a significant energy asset central to the company’s strategy. Despite the difficulties, the board concluded that delisting would enable Bowleven to reduce overheads and enhance financing and operational flexibility to maximize value from its Etinde interest.
