News

September 07, 2009

Armed With Vitol’s Cash, Bowleven Plans Major Drilling Offensive On Etinde In 2010

One month on from inking a farm-out deal with Vitol E&P that could see US$225 million invested in its oil, gas and condensate discoveries offshore Cameroon and AIM-quoted Bowleven has released a little more detail about the new partners’ plans for the acreage. Bowleven announced the farm-out agreement for the Etinde Permit on August 12 and, unsurprisingly, got unanimous backing for the deal at a shareholder meeting at the end of the month, paving the way for a serious injection of capital to accelerate the work programme and forging an alliance with a company that has the contacts and market expertise to help monetize the dormant gas reserves on the Etinde Permit.

Under the terms of the agreement, Vitol E&P (VEP) will fund an initial US$100 million exploration and appraisal programme in return for a 25 per cent stake in the acreage. The company, which is part of Geneva-based energy trading group Vitol, also has an option to acquire a further 25 per cent interest in return for a further US$100 million spend on exploration, appraisal and development activities plus a US$25 million cash payment to Bowleven. This option expires on 30 September 2010....