Presumably to-date the apllication has been written to give BLVN the "rights" to exploit the Etinide area. What happens if we now sell majority stake to LukOil. Can the rights also be transferred or does BLVN remain the license holder throughout the 20 years term? Does it matter?
Hi Ulvers,if a full takeover were to occur from a major similar to Lukoil-there is nothing New Age or the government can do.EEAA is agreed,i am not sure why everyone is declaring that it was the government who wanted this deal.I think it was purely Bowleven economics and the door is wide open still for a counter offer.New age have 25% of Etinde and Lukoil have nothing until ratification by shareholders.I am sure the numbers are being crunched in several boardrooms as i type.All the best
Hi gus, following on from your comment last night mate, a counter offer is possible but unlikely without New Age / Cam gov't support who are clearly acting hand in glove here, so that really narrows down the possibilities. Failing an offer arising, the outcome of the vote is assured and will be a formality despite the initial protestations of some pi holders, surely even most of them realise now that without a serious input of cash this is the only play forward for blvn. Conversely i think it is interesting to note that the market brokers have all been very supportive and bullish about this deal and after all they are the mouthpieces for most of the ii's As i commentated from the outset i think this is not such a bad deal with us retaining a serious amount of equity in Etinde to share in future production, and allowing us the possibility to realise some value elsewhere in our portfolio. All imho.
Map showing the prospect sites Australian energy firm Pancontinental Oil and Gas announced last week that it had struck oil in offshore Kenya. “The Sunbird-1 oil is the historic first ever oil discovery offshore in Kenya,” said Barry Rushworth, the Chief Executive Officer of Pan Continental. “Furthermore it is the only offshore oil column ever reported seaward of the eastern coastal margin of the African continent from South Africa to the North West tip of Somalia. We believe that this is a play-opening discovery in Kenya’s Lamu Basin.” According to Pan-Continental Oil and Gas, the Sunbird-1 oil well which is in the southern Kenyan coast has “intersected an oil column”. “The gross oil column is assessed to be 14metres thick beneath a gross gas column of 29.6m in a reefal limestone reservoir in the Sunbird Miocene Pinnacle reef in area L10A,” reads a communiqué released by Pan Continental Oil and Gas. Pancontinental which is listed in the Australian Stock Exchange (ASX) has interests in three license areas in Kenya’s offshore covering some 15,557 sq km. These are in Blocks L6, Block L10A and Block L10B. In the 4962 sq km Block L10A in the Lamu Basin Pancontinental which controls 18.75 per cent, PTTEP Australasia which is a subsidiary of Thailand’s national oil company controls 31.25 per cent and the London Stock Exchange listed BG Group which is the operator of Sunbird-1 holds the largest stake of 50 per cent. In September 2012 a consortium of Pancontinental, Tullow Oil of UK and the US-based Apache Corporation announced that they had discovered significant amounts of gas in the Mbawa-1 well in offshore Kenya’s Block L8. The exploration costs on Block L8 alone were estimated to have cost some $135 million. According to findings by Pancontinental which has so far participated in five 3D surveys in offshore Kenya, the prospects are promising. Considering that Lamu Basin is part of the western Indian Ocean rim, this news was expected. In the last five years major offshore hydrocarbon discoveries have been made in the western Indian Ocean rim nations. In Mozambique more than 120 trillion cubic feet (tcf) of natural gas has been discovered in the Ruvuma offshore basin while neighbouring Tanzania has between 20 to 30tcf of natural gas deposits. Oil majors Anadarko, ENI, Total, Statoil, PETRONAS and BG Group have significant interests in the entire western Indian Ocean region. Sharing a similar ecosystem is the reason the oil find in Kenya’s offshore was expected. And this is not an isolated incident as the region has in the recent past become a focus of the hydrocarbon industry.
Bowleven engages Africa Fortesa Corp in Cameroon drill-to-earn arrangement
Submitted by Paddy Harris on 27th June 2014
Bowleven has announced another shift in its Cameroonian operations by entering into a conditional drill-to-earn arrangement with privately held Africa Fortesa Corp (AFC)
In return for drilling two exploration wells at cost on the Bomono Permit, AFC will earn a 20 per cent interest in the Bomono Permit. Based on the terms of the arrangement the budgeted cost of the two well programme (excluding testing) net to Bowleven is estimated to be approximately USD 13 – 15m.
Drilling is envisaged to commence prior to the end of 2014.
AFC, through its wholly owned subsidiary, Africa Onshore Drilling, has drilled numerous successful wells onshore West Africa and in Senegal, a number of which are currently producing for gas-to-power.
Further updates, including update upon satisfaction/waiver of all conditions precedent to the arrangement, will be made in due course. In addition to the above arrangement, Bowleven is continuing discussions in relation to a further farm-out of part of its interest in the Bomono Permit in advance of drilling.
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