Bowleven, Africa-focussed oil and gas exploration group, has announced that it has completed the Etinde farm-out transaction onshore Cameroon at an initial US$165mn cash proceeds
According to the company, the farm-out transaction comprised the sale of 30 per cent and 10 per cent interests in the Etinde Permit to Lukoil and NewAge respectively, in return for a total consideration of approximately US$250mn. In addition to the US$165mn initial cash proceeds, Bowleven will receive an estimated US$5mn cash as working capital and up to US$40mn carry for two Etinde appraisal wells.
Bowleven chief executive Kevin Hart said, “We are delighted the farm-out transaction to Lukoil and NewAge has completed. The resulting consideration of cash and carry, together with the expanded and strengthened joint venture, will enable the progression of appraisal and development activities on Etinde.
“Planning for the appraisal drilling on the Intra Isongo is already underway with locations for the two wells nearing finalisation. With a carry in-place to cover our share of drilling and testing we are looking forward to appraising this exciting reservoir interval.”