We would love to hear your thoughts about our site and services, please take our survey here.
On the basis of the detailed examination undertaken, the Board felt justified in maintaining the investment case for the Etinde valuation in excess of $150 million and hence concluded that no impairment was deemed necessary at the current time. The Board feels that with the evolving macro and geopolitical environment, the revenue and cost assumptions of our recent financial modelling, and the high calibre JO partner, the Etinde valuation now has a stronger underlying hypothesis. We acknowledge that the current capitalisation falls well short of these levels and that the Board's challenge into 2023 is to close this gap.
This will be the trigger for a huge re rate. The Company continues to await the completion of the sale by New Age of the 37.5% stake in Etinde to Perenco and understands that this continues to be progressed by both parties.
In June 2022, NewAge signed an agreement to sell its shares in the project (37.5%) to the Franco-British company Perenco and the National Hydrocarbons Company of Cameroon (SNH). The operation would give Perenco the status of operator in the joint venture with the Russian Lukoil (37.5%) and the British company Bowleven (25%).
Looks like there was meeting a few weeks ago which possibly explains this weeks share price rise. Game on
The Cameroonian government does not currently have visibility on the effective development of the Etinde gas project, following the explanations given to the National Assembly on June 16, 2023 by the Minister of Water and Energy (Minee), Gaston Eloundou Essomba.
Agree RLL. Last update the company made it clear they planned to close the gap between the current market cap of £5 and the Asset on the balance sheet valued at £150m. In share price terms thats 2p to 50p. So take your pick somewhere in the middle
Interim statement referred to in todays RNS
Eli Chahin, Chief Executive Officer of Bowleven plc, said:
"We remain on the verge of what we believe to be a major turning point in the business with the expected upcoming change of the Etinde operatorship once Perenco secures regulatory approval.
This is expected to be a key milestone in progressing what is hoped to be a transformational energy project for Cameroon , accelerating what has to date been a challenging timetable towards hydrocarbon production at Etinde for the benefit of all the JV Partners. As demonstrated by the recent signing of a bilateral co-operation agreement on hydrocarbon monetization with neighboring Equatorial Guinea, we are on the cusp of a new energy horizon for Cameroon that will impact the lives of many. We look forward to keeping our shareholders abreast of the anticipated positive developments over the coming months."
I think if you start to DYOR on what the board were saying last year is beginning to stack up why the price is starting to move north. The board value our stake in Etinde at $150m but they recognise the gap between current market cap of £5m and the £150m needs to be closed. I think this could well be the start of that gap closing event. Here is their statement - “On the basis of the detailed examination undertaken, the Board felt justified in maintaining the investment case for the Etinde valuation in excess of $150 million and hence concluded that no impairment was deemed necessary at the current time. The Board feels that with the evolving macro and geopolitical environment, the revenue and cost assumptions of our recent financial modelling, and the high calibre JO partner, the Etinde valuation now has a stronger underlying hypothesis. We acknowledge that the current capitalisation falls well short of these levels and that the Board's challenge into 2023 is to close this gap.
Bowleven [LON:BLVN] was up 67% at the close, having seen some very heavy buying in the latter part of the session. The one-way traffic drove the spread out to 20% and whilst there’s no firm news, the underlying has pushed to fresh highs for the year. There are a number of potential high profile events which could lead to a significant rerating for the stock – is something looming?
Https://twitter.com/richard_corsie/status/1681381518554411008?s=20