Bowleven development receives Cameroon state approval

Africa-focused oil and gas group Bowleven saw its shares race ahead on Tuesday after the receiving state support for the next step of its Etinde project offshore Cameroon.Following meetings last month, a formal resolution confirming Cameroon's approval of the Etinde Exploitation Authorisation Application (EEAA) has been signed.AIM-listed Bowleven said this was a "significant milestone" for the permit and an "important step" towards the award of an Exploitation Authorisation (EA).The EEAA defines the means of monetising the Etinde hydrocarbons by supplying treated gas to a government-sponsored fertiliser plant and also through a liquefied natural gas scheme. The award of the EA will give development and exploitation rights over block MLHP-7 for an initial period of 20 years. "We think that this is the first key step that will trigger a significant de-risking of the Etinde project," according to analysts at Westhouse Securities."Given that the resource has been discovered, that a development plan is in place and that Bowleven is getting closer to a declaration of a Final Investment Decision, we argue that the market should be attributing a much higher probability of successful development (30-40%). We would expect the shares to rally on this news this morning," they said.The stock was up 12.6% at 38p by 09:44.BC