Page 17 - AfrOil Week 13 2021

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“In addition, we have further reinforced our set- now almost entirely commercial and regulatory outlook, the Company is beginning to ben-
tlement in Tunisia, enabling a demonstration of approvals relating to the development concept efit from the more favourable crude pricing
our technical and financial capabilities locally. we will propose. environment.
The Board strongly believes in Zenith’s success- “Currently, the facilities development cost, The Group expects to report a total com-
ful establishment in Tunisia, and we intend to relative to the production levels we can achieve prehensive loss of $16.2mn for the year ended
capitalise on certain additional possible acquisi- due to commercial and regulatory approval December 31, 2020 (2019: loss of $12.0mn). The
tion opportunities that may present themselves issues relating to the sale or utilisation of meth- unaudited total cash balance as at December 31,
in the near-term.” ane gas production, can be improved upon. 2020, stood at $4.5mn with $1.7mn recognised
Zenith Energy, March 24 2021 Whilst the proposed ‘Base Case’ development as restricted cash (audited total cash balance as
concept tested by FEED provides a positive at December 31, 2019, was $3.8mn with $1.1mn
outcome, the economic value is lower than the recognised as restricted cash). As at Decem-
PERFORMANCE minimum level the JV partners consider desir- ber 31, 2020, total unaudited outstanding debt
able. The JV Partners are confident that further financing, net of cash (excluding restricted
Bowleven reports on discussions with the Government of Cameroon, cash), was $11.4mn, compared to $15.6mn as
represented by SNH, can progress to a stage at June 30, 2020 (December 31, 2019: $16.5mn).
interim results in H2-2020 whereby a development concept with signifi- Trade and other payables stood at $31.1mn
cantly increased economics for all parties can be as at December 31, 2020 (December 31, 2019:
Bowleven, the Africa focused oil and gas, Explo- agreed upon. $20.6mn).
ration and Production Company with key inter- “At a time of considerable market turbulence, As at February 28, 2021, the Group has an
ests in Cameroon, has announced its unaudited we are fortunate to benefit from a robust finan- outstanding balance of external interest-bearing
interim results for the six months ended Decem- cial position, with in excess of $8mn of cash and loans and borrowings of approximately $14.7mn
ber 31, 2020. investments on the balance sheet and no debt. and a total cash balance of $2.1mn, with $1.5mn
Highlights: The Operating Committee, Coupled with our low-cost base, we remain well recognised as restricted cash. Trade and other
through its resolution dated December 11, funded to reach FID, after which we will be in a payables stood at $33.2mn as at February 28,
2020, has given the JV partners permission to position to receive the $25mn contingent con- 2021.
negotiate a new Etinde Exclusive Exploitation sideration from the JV partners, instantly giving The Board of Directors and management
Authorisation (EEA or EEE). The current EEA the Company a significant cash injection. of LEKOIL believe that the underlying quality
will continue until replaced. “Although the ongoing macro-economic of the assets in the Company’s portfolio will
Group cash balance at December 31, 2020, conditions seen in 2020 and beyond have nega- underpin their commitment to deliver a high
was circa $6.4mn with a further $2.1mn held in tively impacted the timing of the Etinde project, performing business that produces value for all
financial investments, with no debt and material we welcome the recent oil price strength and shareholders.
financial commitments. we continue to work towards achieving FID as Otakikpo: On behalf of the two Otakikpo
Front End Engineering Design (FEED) com- quickly as possible. We look forward to keeping Joint Venture partners, Green Energy Interna-
pleted in January 2021, marking a very signifi- all of our stakeholders appraised on progress tional Ltd (GEIL), the operator of the Otakikpo
cant milestone in progressing Etinde towards over the coming months.” Marginal Field, and LEKOIL Oil and Gas Invest-
FID and development approval. Bowleven, March 30 2021 ments Ltd (LOGL), the technical partner and a
Ongoing market volatility caused by the member of the LEKOIL group, following is an
COVID-19 global pandemic in 2020, and the LEKOIL provides trading and update on operational performance in respect
associated fall in global oil prices, has continued of the Otakikpo Marginal Field in OML 11, the
to slow down and impact negatively on pro- operational update for 2020 Company’s sole producing asset:
gressing Etinde development overall. This has For the full year 2020, average production
particularly impacted various commercial and LEKOIL, the oil and gas exploration and pro- levels were 5,062 bpd gross with 2,025 bpd net
legal/regulatory approval negotiation processes. duction company with a focus on Nigeria and to LOGL. This was down 5% from 2019 (5,305
As a result, FID is likely to slip into 2022. The West Africa, has provided a trading and opera- bpd gross with 2,122 bpd net to LOGL). Average
recent oil price recovery significantly helps pro- tional update for the full year ended December daily production was 5,378 bpd gross with 2,151
ject economics. 31, 2020. bpd net to LOGL for January and February 2021.
The JV partners continue to place a high pri- Corporate Update: For the year ended The first lifting of the year occurred in February
ority on maximising project NPV and minimis- December 31, 2020, unaudited revenue was 2021 with net cash proceeds of $3.7mn. The sec-
ing capital development costs as we conclude $31.5mn, down 25% from the previous year of ond lifting occurred last week with increased net
Etinde development and commercial options. $42.0mn. This decrease was largely due to the cash proceeds of $6.6mn expected following an
Eli Chahin, CEO of Bowleven, said: “During lower realised oil price experienced in 2020 of increase in the volume lifted and the improv-
2020, we were pleased with the progress made $35.5 per barrel, compared with $62.0 per barrel ing crude pricing environment. The Company
towards achieving FID at Etinde. We have com- in 2019. With the improving macro-economic remains in discussions with financiers to raise its
pleted a significant number of the most impor- share of the funding required for the next two
tant technical work streams and made strong wells on the field, which amounts to $10.0mn in
progress on a number of other important pro- aggregate.
ject development related work streams. Certain OPL 310: The Company has engaged with
hurdles persist, predominantly around agreeing Optimum regarding its notice to terminate the
the many commercial aspects of the develop- Cost and Revenue Sharing Agreement (CRSA)
ment with SNH, the Government of Cameroon in respect of OPL 310. An update will be pro-
and other interested parties. The principal out- vided in due course.
standing requirements to achieving FID are LEKOIL, March 26 2021

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