BLVN.L Regulatory News (BLVN)

4 March 2015

Bowleven plc ('Bowleven' or 'the Company')

Group Operational Update

Bowleven, the Africa focused oil and gas exploration group traded on AIM, announces an update on its operational activities, onshore Cameroon and Kenya.

Bomono Permit, Cameroon

Drilling contractor AODL has assembled the rig and drilling systems at Zingana, the first of two well locations in the 2015 exploration programme. Routine function checks have identified certain mechanical and control issues that need to be addressed by AODL before drilling operations commence. A further update on the expected spud date will be provided in due course.

The technical and commercial work on the development options in the event of success on Bomono continues, and is clearly advantaged by the evolving industry cost environment.

Block 11B, Kenya

Adamantine, operator of block 11B, has advised that they have applied to the Kenyan authorities for a 15 month extension to allow for the acquisition, processing and evaluation of 2D seismic. Logistical issues, including security concerns, have delayed the commencement of seismic operations, such that the programme will be unable to be completed prior to the expiry of the first exploration phase of the licence on 26 May 2015.

Interim Results

The company will announce its Interim Results for the six months ended 31 December 2014 as planned on Wednesday 25 March 2015.

ENQUIRIES

For further information please contact:

Bowleven plc

Kevin Hart, Chief Executive 00 44 131 524 5678

Kerry Crawford, Finance Director

Brunswick Group LLP

Patrick Handley 00 44 207 404 5959

Simon Maine

Macquarie Capital (Europe) Limited (Nomad)

Jon Fitzpatrick 00 44 203 037 2000

Ken Fleming

Nick Stamp

Notes to Editors:

Bowleven is an African focused oil and gas exploration group, based in Edinburgh and traded on AIM. Bowleven's strategy is focused on creating and realising material value through exploration led organic growth. Bowleven holds equity interests in three blocks in Cameroon, with one block located offshore in shallow water and two onshore. All of these blocks are currently operated by Bowleven.

Bowleven also holds an equity interest in an onshore block in Kenya, operated by Adamantine Energy, and has been awarded three blocks in Zambia, with applications on two blocks pending.

On 24 June 2014, Bowleven announced that the Group had entered into a conditional farm-out agreement to sell an aggregate 40% (post government back-in) operated interest in the Etinde Permit, Cameroon to LUKOIL and NewAge (or their nominated affiliates) in return for an aggregate consideration of approximately $250 million. The proceeds comprise:

· Approximately $170 million cash at completion (includes $5 million estimated working capital adjustment, subject to finalisation);

· Up to $40 million (net) carry for two Etinde appraisal wells;

· $15 million cash to be received on completion of appraisal drilling; and

· $25 million cash contingent upon and to be received at Etinde development project FID.

As announced on 24 February 2015, the final condition of the farm-out has been satisfied and the transaction is now scheduled to complete within 15 business days of the final condition being met. On completion of the farm-out transaction operatorship of the offshore Etinde Permit in Cameroon will transfer to NewAge and participating interests will be:

NewAge: 30%

LUKOIL: 30%

Bowleven: 20%

SNH: 20%

Notes to Announcement: 

(1) The information in this release reflects the views and opinions of Bowleven as operator and has not been reviewed in advance by its joint venture partners.

Glossary of Terms:

The following are the main terms and abbreviations used in this announcement: