Bowleven : Annual Report and Accounts 2020.

WHO WE ARE

Bowleven plc is an independent AIM listed oil and gas company focused on Africa, where it holds a development and exploration interest in Cameroon.

OUR PURPOSE

Bowleven plc is dedicated to realising material shareholder value from its asset in Cameroon, whilst maintaining capital discipline and employing a rigorously selective approach to other value- enhancing opportunities.

OUR VISION

To deliver shareholder value through monetisation of our discovered hydrocarbons by creating value from the asset and managing risk.

CORPORATE HIGHLIGHTS

$9.1m

Cash and bank deposits held at end of June 2020; no debt. No outstanding work programme commitments (2019: $11m)

$2m

Invested in publicly traded debt instruments and equity in the form of limited partnership structures (2019: $4m)

$25m

Payment of $25m is due from joint venture (JV) partners once FID is reached on the development of the Etinde field (2019: $25m)

$11.1m

Total value of funds which comprises cash and financial investment (2019: $15m)

OPERATIONAL

Etinde, offshore Cameroon

• Front End Engineering Design (FEED) contract awarded to Technip in Q1 2020. Commencement was delayed until 1 July 2020 due to the impact of the COVID-19 pandemic. This contract focuses on the design and engineering of the onshore gas processing facility, the IM wellhead platform and the appropriate production and sales pipeline infrastructure.
• FEED is expected to complete in November 2020 and is currently on time and within budget.
• Work is also progressing on the sub-surface development plan, including location, number and type of wells required to produce wet gas from IM reservoirs.

FINANCIAL

• The loss for the financial year was $2.6 million.
• Bowleven closed the year with $9.1 million of cash and a financial investment of $2.0 million giving a total value of funds of $11.1 million.
• Having assessed the forecast cash expenditure to Financial Investment Decision (FID) and the receipt of $25 million on FID from the JV partners, the Company believes the Group has sufficient funds to continue in operation for the foreseeable future until at least FID, which is expected in 2021.

CORPORATE

• Bowleven and New Age Ltd (New Age) have jointly appointed a lead financial advisor, Cofarco to manage raising investment finance for the Etinde development.
• The Etinde JV partners are in discussion with Société Nationale des Hydrocarbures (SNH) and various other commercial parties in respect of the sale of gas, Liquefied Petroleum Gas (LPG) and condensate.
• The Group commenced closing its Employee Benefit Trust during the year following the cessation of the Group's long-term incentive plan (LTIP) and employee share option schemes.
• E&Y resigned as auditor during the year. Following a tender process, BDO was appointed to the role of auditor in the interim and will be nominated to be reappointed at the forthcoming annual general meeting (AGM).

OUTLOOK

Key objectives are to deliver on a revised strategy in FY2021 which include:

• Working with JV partners on FEED, Commercial and Finance matters in respect of the Etinde development options with the aim of Etinde project FID in 2021.
• The JV partners propose to address the Etinde Exclusive Exploitation Agreement (EEEA) licence duration as part of the FID process regulatory submission to the Government of Cameroon. The risk of the Etinde licence potentially expiring in January 2021 is considered low to medium at the current time.
• Disciplined capital management to secure progress towards FID and thereafter explore funding options regarding development capital.

Bowleven plc has a strategic interest in key hydrocarbon licences in Cameroon.

It currently has a 25% interest in the offshore, shallow water Etinde Permit. Our vision is to deliver shareholder value by monetising our discovered hydrocarbons. Creating value from this asset and managing risk are core deliverables to our shareholders. The Company together with its partners, seeks to adopt best-in-class Environmental, Social and Governance principles in corporate strategy and decision-making to ensure long-term business value.

25Population in Cameroon.9m

2Population.6%growth rate (2020 est.)

$Gross Domestic1,553Products (GDP) per capita

WHERE WE OPERATE

The West African state of Cameroon has an established hydrocarbon industry with a history of oil production from the Rio del Rey Basin.

The Group has a strategic equity interest in the offshore shallow water Etinde Permit (non-operated) in Cameroon.

OUR PORTFOLIO

ETINDE

The Etinde Permit (formerly MLHP-7 block) which lies in shallow water in the prolific Rio del Rey Basin was awarded an Exploitation Authorisation (EA) in January 2015. The production sharing contract (PSC) based permit has a term of 20 years with an option to extend for a further ten years. The IM-5 well drilled in 2013, encountered liquid-rich hydrocarbons

at sufficient volumes to underpin a development scheme within the EA framework. Following the successful 2018 appraisal campaign, the Etinde project has moved to a development planning phase. FEED Studies based on the earlier concept selection to optimise the development of the Etinde field are currently underway with a view to reaching a Final Investment Decision in 2021.

OUR FOCUSED STRATEGY

• Continued delivery of value from our asset
• Commitment to implementing sustainable long-term business procedures
• Agreeing development concept and progressing the Etinde field
• A strong focus on achieving FID