Farm-down to VOG monetises Bomono gas
Bowleven’s (BLVN) farm-out with Victoria Oil and Gas (VOG) is probably the quickest route to market for Bomono gas. While BLVN has had to sacrifice 80% of its interest in the block, the deal allows gas to be sold to Victoria’s existing network of customers at a gas price significantly above that expected from other solutions with very little further capex required in the near future. On our estimates, 7mmscfd of production should bring in around $6-7m in direct revenues and royalties, corresponding to around c $4m in post-tax cash flows, a useful addition to Bowleven’s income. On the assumption that the deal completes, we increase our core NAV from 49p/share to 53p/share to reflect Bomono’s inclusion.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.
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.
.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.