BowLeven shares spiked 86% to 4.6p in late morning trading on Tuesday after the group reported a conditional agreement for Perenco to become its partner and operator at the Cameroon Etinde permit.
The company announced that it had been told by Etinde joint venture operator New Age Limited that it had signed a definitive conditional agreement with a subsidiary of Perenco S.A. to transfer the entirety of New Age’s participating interests in the permit to the firm, alongside its operatorship of the project.
BowLeven confirmed that the transaction would be subject to a slate of approvals, including customary regulatory approvals by the Cameroon government and the approval of the Etinde joint venture partners.
The terms of the conditional agreement reportedly stipulate that BowLeven and LUKOIL have a 30 day right of pre-emption over New Age’s interest.
BowLeven will also still be entitled to a final investment decision payment of $25 million from its Etinde joint venture partners, which would include Perenco on the completion of the transaction.
“The prospect of Perenco becoming our partner and operator at the Etinde permit is very positive news,” said BowLeven CEO Eli Chahin.
“We believe that Perenco’s proven Cameroon oil and gas developments and substantial experience provide an opportunity to accelerate our efforts to secure FID and the associated USD25m payment to Bowleven.”
“We look forward to engaging with Perenco and we will update shareholders in relation to Etinde developments in due course.”