Edison Investment Research - BowLeven PLC (BLVN) Buyback demonstrates confidence in asset base

Report

Edison Investment Research

Will Forbes

Buyback demonstrates confidence in asset base

Bowleven’s proposed $10m buyback of its shares shows management’s confidence in the value of its asset base and strength of balance sheet. With shares regularly trading near cash levels (and at a material discount to core NAV), the proposed $10m buyback would be accretive for NAV/share while not reducing the company’s cash position materially (given an additional $15m cash injection is expected in September) or limiting its ability to execute on its strategy. We have made a number of changes to our valuation, with core NAV rising from 45p to 46p/share. Our RENAV moves to 61p/share (from 60p/share). We note that these valuations have the potential to move up by 6% if the shares are bought back at a price of 22p/share.

19/08/2016 5 EN

Underlying

BowLeven PLC

Bowleven is an oil and gas company focused on Africa, where it holds a combination of development and exploration interests in Cameroon. Co.'s assets are aggregated into a single reporting segment: Africa operations, which focus on exploration and appraisal activities in Cameroon. All assets that are aggregated in this segment are in the exploration phase.

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GB00B04PYL99 London Stock Exchange United Kingdom

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Will Forbes

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