Morning Mumble: Bowleven (slight disappointment on the $) but all the same positive

Going back through the coverage, Bowleven was a no brainer. Etinde Farm-out agreement signed with the highlights: 

Highlights of the Transaction - Bowleven will reduce its interest in the Etinde permit from 75% to 25% and receive aggregate consideration of approximately $250 million (subject to final working capital adjustment) comprising:

• $170 million cash payment at completion;

• $40 million staged deferred cash payment due at Etinde development project FID and on completion of appraisal drilling; and

• $40 million (net) carry for two appraisal wells.

• LUKOIL will acquire a 37.5% interest and NewAge will acquire an additional 12.5% interest in the Etinde Permit to increase its group holding from 25% to 37.5%

• Camop (a wholly-owned subsidiary of NewAge) will become Operator of the Etinde Permit following completion, allowing Bowleven to focus on its proven exploration skillset.

• Bowleven will retain a 25% interest in the Etinde Permit, ensuring continued exposure to the considerable resource and future development potential of the acreage.

• The significant cash consideration strengthens the Group's balance sheet providing funding flexibility for Bowleven's pre-production share of Etinde development expenditure and the progression of exploration activities. 

• The two acquisitions are interconditional and the principal conditions precedent to completion of the transaction are normal regulatory approval by the Cameroon government and approval by Bowleven shareholders to be sought at a General Meeting.

Overall, it looks positive for Bowleven, and perhaps will give some appreciation in their share price. My figures were well off the pace, expected $350M perhaps that's due to my lack of understanding? All in all it crystalises the past for Bowleven, the future is what counts now...the two funded drills will 'surely' add to the value of Etinde. However I cannot complain with 35% in some months!

Sadly no time for the coverage of "very bizarre Chinese Iron Ore trading...perhaps later with my elevenses.

Atb Fraser