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If the FID allows for exports, perhaps the power stations will be less important?
"It’s a huge resource with an estimated 361bn cubic feet (bcf) of 2C contingent recoverable resources, and 690bcf of 2U prospective resources."
Etinde consists of IM and IE fields, with post the IM-5 drill, the IM field was estimated to have in place 155 mmbls of liquids and 1.05 tcf of gas with an external audit in 2019 ascribing 185 mmboe to the IM field and 60 mmboe to IE recoverable, with BLVN being a 20% partner alongside Lukoil and New Age with 30% each
Fairly obvious response, Hamz - Morocco, with its proximity to Europe, is not the same market as Sub-Saharan Africa. However, plenty of institutions are willing to invest in Sub-Saharan Africa if the project economics are right. Gas development in Nigeria is being pushed by their government (see SAVE who have 10% of that market currently). Electricity development is being pushed by the Cameroonian government, and too for the wider CEMAC region (Business in Cameroon is a good website). Key for Etinde will be the development of a power station or two at Bekoko (Aksa) and/or Limbe. I doubt the Etinde project will be attractive to funders until one of these power stations gets the go ahead.
The below pasted from Investors Chronicle, suggests that project finance is available for gas projects in Africa...I am not sure how the Chariot asset compares with Etinde. Any insights there would be appreciated.
Aim-traded Chariot Oil & Gas (CHAR:6.48p) has received two non-binding expression of interests to provide development funding for the company’s Anchois offshore gas discovery in Morocco. It’s a huge resource with an estimated 361bn cubic feet (bcf) of 2C contingent recoverable resources, and 690bcf of 2U prospective resources.
The fact that two highly regarded institutional lenders – African Finance Corporation, a Pan-African infrastructure institution, and a well-known multinational bank – have endorsed the project underlines its quality. It’s also significant given that capital expenditure of US$300m to US$500m needs to be funded to bring the development on stream. Chariot is also engaging with potential off-takers both within the domestic Moroccan gas market, and through the Maghreb-Europe pipeline to the European gas market.
Thanks, OnlyYou.
Full version here: http://www.bowleven.com/system/files/press/investor-call-2677383nov09_0.mp3
Having listened again, regards my previous comments, I think (a) and (c) remain as is. (b) is more nuanced, (too, I can't catch all the words precisely) and I first took tripartite discussions to include Blvn, but now think he means just VOG, Aksa, and SNH/govt. So Blvn says it is important to them, but is remaining uncommitted to their participation in funding the onshore pipeline (perhaps hinting that, after all, they are building the offshore link).
Happy Sparrow. It's been replaced now with the full version.
Hamm, just seen your post. That was the last questioner, if I recall correctly, but what was then said was very interesting. I'm not a shareholder yet (I'm in VOG). Perhaps you could ask IR to have another go at posting the material, please
Shame, some very interesting material was cut off from the end of the broadcast. Perhaps they can redo the link?
This recording appears to be 35 minutes long, so I wonder if it includes all of the Q&A?
Thanks for the heads up Happy Sparrow. Look forward to re-hearing it.
Investor Call:
http://www.bowleven.com/system/files/press/recording-20201109-2677383nov09.mp3
Note also VOG well LA-108 RNS this morning.
Could this help tip the Cameroonian Government and Aksa towards finalising the go ahead for Aksa power station? And thus help tip Etinde project to focus on domestic supply rather than export?
Agreed, OnlyYou. I hope to catch it properly this time.
The call should be on Bowleven's website within the next day or two. I suggest people listen / re-listen instead of accepting other people's interpretations of what was said.
FEED is in fact slated for this month? FID some time next year?
An interesting detail from the call is that the need for any equity financing could be reduced by the $25 million FID payment that we know about - but also by the possibility than the state oil company SNH, might have to bear its share of sunk costs for historical development, if it exercises its option to get 20% of the deal. Of course we have no idea what shape any deal may take, but this could be a benign scenario.
I missed the first ten minutes, but caught the rest. I picked this up:
a) equity raise is a real possibility after FID;
b) Limbe - Bekoko pipeline (thanks whoever asked the question - Lea?) working interests under discussion (in other words, very likely BLVN will be contributing something towards funding it, imo).
c) Very good discussion on how they intend to develop Etinde - are they going to focus mainly on an export market or a domestic market? Best export route Equitorial Guinea? - (but has problems?). [Was this a bluff for the ears of the Cameroonian Govt - to say BLVN have other options?] Or domestic, via feeding the power stations (Limbe? Aksa?). My impression was that the whole Etinde project is waiting for a finalisation of discussions between Blvn/New Age with Vog, Aksa, and SNH and the Cameroonian Government; and the wider discussions between the Government and Aksa and Eneo (or with Limbe financiers? - if they exist?). I think these discussions might be close to being finalised - next 3 months - just my impression.
Once done, then all steam ahead; FEED and FID 6 months on from there.
Did anyone join and have anything to report?
Interesting to see that Bowleven are hosting a conference call for shareholders at 12pm on Monday 9 November 2020. If you want to join, contact Celicourt Communications via email: OMills@celicourt.uk
I've been in and out of BLVN since 2011-12. I have to wonder what 'progress' has actually been made with this company. The price has ranged from over £3 down to £2 down to £1 and now here we are at 4.5p (yes, pence). I can't get excited at all no matter what they throw out in RNS's and investor calls.
A little surprising. A slow burner perhaps, or maybe it’s just a case of see you next year.
out from Arden Partners, apparently.
A lot of variables though. But still an encouraging RNS, all things considered.
RNS for a change! Shows how undervalued this is with out interest in the Etinde project alone being $150 million yet market cap is 15 milliom! 10 fold increase to todays 5p
Thanks I was wondering if I’d missed the details