Bowleven to Review All Options

After sacking most of its directors a week ago, UK-based Cameroon explorer Bowleven said March 21 it is launching a strategic review of its options.

Its statement said this strategic review may include but is not limited to a review of the strategy proposed by Monaco-based private equity firm Crown Ocean Capital (COC) in its letter to Bowleven shareholders dated February 15, a farm-out or sale of one or more of Bowleven’s existing assets, or a corporate transaction such as a merger with or sale of the company to a third party.

Etinde is seen as Bowleven's 'prime asset' by the company's largest shareholder (Map credit: Bowleven)

As largest shareholder, COC in its February 15 letter had indicated a preference for Bowleven to focus on its non-operating 20% interest in the offshore Etinde field, to divest its operated stake in the onshore Bomono licence (both in Cameroon), and to shrink corporate running costs to $1mn-$2mn a year.

Etinde has condensate and associated gas reserves, with operator NewAge even considering it for a possible floating LNG project.

COC led the move to oust former directors on March 14 and appoint two of its own nominees. The existing Bowleven chairman Billy Allen remained in post. So did operations chief David Clarkson who was unchallenged.

A planned farm-out at Bomono to Victoria Oil & Gas announced March 6 is now expected to remain on hold, pending the strategic review. Bowleven's statement did not indicate how long it would last.

Mark Smedley