Page 14 - AfrOil Week 13 2020

AfrOil
NEWS IN BRIEF
AfrOil
2020 is expected to be an extremely active and potentially transformational period for the Company. The recent $25mn financing and the farmout of Block 2B will allow the Company to participate in up to four high-impact exploration wells offshore South Africa. The planned wells are all targeting material prospects with rela- tively high chances of success.
The Block 11B/12B joint venture operated by Total has embarked on an ambitious exploration programme offshore South Africa to follow-up on the large Brulpadda light oil and gas conden- sate discovery in February 2019. The fully-pro- cessed Polarcus 3D dataset confirms the large resource potential of the Paddavissie Fairway.
The expanded Shearwater 2D seismic survey is complete, and the onboard fast-track process- ing has identified significant prospectivity with encouraging seismic indicators across the new Kloofpadda lead to the east. The scope of the PGS 3D seismic survey has been increased to cover a newly identified northern extension to the Luiperd Prospect. The multi-well 2020 explo- ration program on Block 11B/12B is expected to commence with the Luiperd well in June and will target several de-risked submarine fan pros- pects with substantial prospective resources. As the global coronavirus situation is fluid, we will update investors if there are material changes to the drilling schedule.
Management is focused on closing the Block 2B farmouts, whereby the Company will be car- ried through the next exploration well, Gaza- nia-1, expected to spud by the end of 2020.
Block 2B has significant contingent and prospective resources in shallow water close to shore, including the A-J1 discovery from 1988 that flowed light sweet crude oil to surface. The Gazania-1 well will target two prospects in a rel- atively low-risk rift basin oil play up-dip from the discovery.
Africa Energy, March 25 2020
PERFORMANCE
Bowleven announces preliminary results and update on operations in Cameroon
Bowleven, the Africa-focused oil and gas explo- ration Group traded on AIM, has announced its unaudited interim results for the six months ended December 31, 2019, and provided an update on operations in Cameroon.
Highlights include: continued progress on Etinde development options and working with joint venture (JV) partners towards agreeing
Final Investment Decision (FID) in late 2020; lead contractor appointed to manage the Front- End Engineering Design (FEED) process; Tech- nipFMC are expected to commence project activity in early April, with a planned duration of five to eight months; Letter of Intent (LoI) signed between Victoria Oil & Gas and New Age (African Global Energy) for the supply of gas from the Etinde Field, offshore Cameroon; ongoing market volatility caused by the COVID- 19 global pandemic and the recent fall in global oil prices could potentially have an adverse effect on the Etinde project timeline.
Etinde: The JV partners are proceeding with FEED related processes; continuing commercial activities focused around a liquids-based devel- opment alongside discussion of sales terms with potential gas, condensate and Liquefied Petro- leum Gas (“LPG”) off-takers; preparatory steps for raising development finance, potentially on a jointly funded basis, to implement the Etinde development project; reprocessing seismic data relating to the IE/ID/IB/IC areas of Etinde.
Bomono: Discussions with the Government of Cameroon and Societe Nationale des Hydro- carbures (SNH) to finalise the closing position and return the licence to the State are ongoing.
Corporate: Group cash balance at Decem- ber 31, 2019, was circa $10.9mn with a further $2.3mn held in financial investments with no debt and material financial commitments; a bank guarantee relating to the deposit of $0.5mn is due to end shortly and we expect this amount will be added to our free cash resources shortly; Bowleven considers the value of cash and investment of $13.7mn to be sufficient to meet the Group’s financial requirements until FID on Etinde is reached; the loss for the six month period was $1.4mn compared to $1.4mn in the equivalent period last year.
Eli Chahin, Chief Executive Officer of Bowleven, said: “During the period, we were pleased with the progress made towards achiev- ing FID at Etinde. We advanced a number of important project-related work streams, includ- ing; appointing a lead FEED contractor, assess- ing commercial arrangements for the produced
condensate and gas, and reviewing potential financing options for the project.
“At a time of considerable market turbulence, we are fortunate to benefit from a robust finan- cial position, with in excess of $10mn of cash on the balance sheet and no debt. Coupled with our low cost base, we are well funded to reach FID, after which we will receive $25mn from the JV partners.
“Despite the solid progress Bowleven has been making, recent macro conditions have the potential to impact the timing of the Etinde project. As a business, we will continue to work towards achieving FID before year-end and we look forward to keeping all of our stakeholders appraised on progress over the coming months.” Bowleven Oil & Gas, March 27 2020
INVESTMENT
Senegal Oil & Power
event postponed because
of coronavirus outbreak
Due to the restrictions imposed by COVID- 19 on travel, meetings and large gatherings globally, Senegal’s official energy event Senegal Oil & Power 2020, originally planned for May 27-28, will be postponed to a later date. Organ- iser Africa Oil & Power (AOP) pledges its full support and solidarity with the people of Sen- egal and the nation’s leadership as they fight the coronavirus.
AOP is working with Senegalese government partners to confirm a new date for the confer- ence, and will continue to support all stakehold- ers involved in combatting COVID-19 in the country.
The new date will be selected by the Ministry of Petroleum and Energy and other government partners in the energy industry alongside the organiser, and the conference will take place with the theme ‘A New Wave of Investment’.
This is a momentous point in Senegal’s devel- opment as a regional center for investment in energy. With final investment decision reached on two mega-projects, Senegal is fully realising its potential.
With the country now on track to become an African energy powerhouse, Senegal Oil & Power 2020 creates critical new links between global capital and Senegalese projects; provides a platform for the government to explain its vision; defines the narrative on how Senegal’s people will benefit from energy and how this will happen; and gives a holistic view of the oppor- tunities of the energy sector in all its diversity, including renewables.
Africa Oil & Power, March 27 2020
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Week 13 01•April•2020