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LONDON (Alliance News) - Africa-focused oil and gas company Bowleven PLC on Tuesday said it has finalised the farm-out of the Etinde permit in Cameroon and has received USD165 million in cash from the deal.
The farm-out included the sale of a 30% stake in the permit to LUKOIL and a 10% stake to NewAge for a total consideration of USD250 million.
In addition to the USD165 million cash payment, Bowleven will receive USD5 million in cash for working capital, up to USD40 million for two Etinde appraisal wells, USD15 million upon the completion of appraisal drilling and USD25 million in cash contingent a final investment decision for the Etinde development.
Operatorship of the permit has been given to NewAge, which now has a 30% interest, with Bowleven to retain a 20% non-operator interest. The remaining 20% interest is held by SNH.
"We are delighted the farm-out transaction to LUKOIL and NewAge has completed. 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," Bowleven Chief Executive Kevin Hart said.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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