Bowleven Fires Most Directors

AIM-listed Cameroon-focused explorer Bowleven’s shareholders have voted to fire most of its board.

Monaco-based private equity firm Crown Ocean Capital (COC), a significant Bowleven shareholder, summoned a general meeting in Edinburgh March 14 at which most of its resolutions were adopted, including the appointment of two new directors.

Bowleven CEO Kevin Hart along and four others “ceased office as directors with immediate effect”, said a Bowleven statement March 15. Their removal hinged on votes cast by COC whose nominees Christopher Ashworth and Eli Chahin were appointed to Bowleven’s board.

On the way out, Bowleven CEO Kevin Hart (Photo credit: Bowleven)

However a COC resolution to fire chairman Billy Allan was defeated so he remains in post. Bowleven’s chief operating officer David Clarkson was not challenged by COC and remains in post; he joined the Bowleven board in 2013 after a career of 30 years at BP.

COC, which had a 22% stake in Bowleven as at March 6, accused Bowleven of “ten years of shareholder value destruction” and said that $100mn had been invested in its “uneconomic Bomono” licence in Cameroon; it also noted that a hefty $44mn was paid to directors over the past decade.

Bowleven’s board earlier this month agreed to farm down an 80% stake in its Bomono gas prospect to Victoria Oil & Gas (VOG) which already markets gas in the nearby port city of Douala, but that too is now in doubt.

UK-based VOG noted March 15 that Bowleven has the option to terminate the farm-out, following its March 14 general meeting, adding: “VOG continues to look forward to developing the Bomono project with Bowleven and will shortly be in contact with the board of Bowleven in this respect.”

COC also said “prime asset Etinde” ownership, offshore Cameroon, dropped from 100% to a 20% passive non-operator stake". Lukoil and Jersey-based NewAge farmed in during 2015, paying $250mn to Bowleven. NewAge now sees prospects to develop a floating liquefaction project on Etinde by 2023.

Mark Smedley