Wednesday 8 November 2017

Bowleven, the Africa focused oil and gas exploration group traded on AIM, today announces its preliminary results for the year ended 30 June 2017.

HIGHLIGHTS

Operational

Etinde, offshore Cameroon

· Ongoing operator evaluation of development options, including scope for early-stage development plans that align with the Government's preferred offtake solutions.

· Two carried appraisal well locations agreed with our partners targeting combined additional in-place volumes of up to 2 tcf of gas and associated liquid resource; drilling to progress once agreed by the Etinde JV partners.

Bomono, onshore Cameroon

· Bomono development concept defined to access existing Cameroon infrastructure and potential monetisation route.

· Prospect inventory compiled highlighting both Tertiary and Cretaceous prospectivity.

Other

· Pre-March 2017, the Board signed an agreement to farm out 80% of the Group's interest in the Bomono Production Sharing contract to Victoria Oil & Gas Plc ("VOG"). The commercial terms and legal documentation remain the subject of negotiations owing to various stakeholder discussions.

· Cameroon Government approval for the completion of this farm-out arrangement has not been received to date.

· Impairment of Bomono Intangible exploration asset by $46 million, reflecting the impact of the VOG farm-in agreement on the asset valuation.

Corporate

· Group cash balance at 30 June 2017 circa $86 million; no debt. No outstanding work programme commitments.

· Under the Etinde transaction, access to further $40 million (net) carry for two appraisal wells (including testing) and $25 million at FID.

· Completed organisational restructuring commensurate with our non operated portfolio giving rise to significant G&A cost reductions.

OUTLOOK

Key objectives for the next 12 months include:

· Ongoing focus maintaining the significant reduction in G&A into FY2018

· Ensuring our capital is rigorously guarded to maximise value of every dollar invested for our shareholders

· Working with our partners on Etinde development options and on the appraisal drilling programme in 2018

· Leveraging partner relationships in de-risking Bomono.

Eli Chahin, Chief Executive Officer of Bowleven plc, said:

"After a year of significant strategic change for Bowleven, I am confident that the Company is well placed to support the advancement of its existing asset base in Cameroon and has the potential to deliver shareholder value into 2018 and beyond.

We enter the year with a strong cash balance and a deferred consideration structure in place post completion of the Etinde farm-out transaction, no debt or outstanding work programme commitments. Additionally, we have scaled back the overhead base of the organisation, but retained a fit for purpose operating model from which to progress the monetisation of our assets.

On Etinde, we anticipate commencing a tightly managed appraisal drilling campaign, according to a comprehensive plan developed with our joint venture partners. In Bomono, we have maintained the farm-in option with Victoria Oil and Gas, which allows us to leverage their infrastructure, but as a non-operator. Key to our business model is partnering, whilst continuing to scrutinise work programme costs and exercise capital discipline wherever possible.

As an experienced and focused management team, we move forward from a position of financial strength, confident that we can meet future demands and protect our interests in Cameroon, whilst at the same time maximising value for all shareholders."