Bowleven, the Scottish oil and gas explorer focused on west Africa, said yesterday it was about to embark on the busiest operational spell in its history.
The Edinburgh firm – whose chief executive is former Ellon Academy pupil Kevin Hart – said the next 12-18 months would undoubtedly change the shape of its business.
Bowleven, founded in 1998 and which has operated in Cameroon for a decade, added: “We are confident that the work programme envisaged can propel us forward, with the aim of proving exploration potential and turning resources into commercial reserves. We also look forward to exploration drilling that, if successful, would add further significant value to our portfolio.”
The upbeat outlook came as the firm reported figures showing a narrowing of pre-tax losses to £6.2million for the year to June 30, compared with £6.7million in 2007-08.
Bowleven currently has no revenue, but expects production from its Etinde permit offshore Cameroon to start in 2013-14.
The Aim-listed firm said its annual losses narrowed after foreign-exchange gains offset a £30.9million impairment charge created by a decision to delay development of its EOV field in Gabon.
Bowleven reported a cash balance of £73.4million, which it said was enough to cover its work programme for next year. A continuous drilling campaign of up to four wells is planned for Etinde. Drilling elsewhere, seismic work and an ongoing review of farm-out opportunities over the next 12 months are all expected to help take the group forward.
Funding for the increased activity comes from an equity fundraising in June, which netted about £69million, and a farm-out deal for Etinde with Vitol E&P.
Bowleven offered Vitol an initial 25% interest in Etinde in return for funding for future projects. The proposed farm-out is conditional on regulatory approval by the Cameroon government.
Mr Hart said: “2010 is shaping up to be the most active period in Bowleven’s history. This is an exciting time for the group, with a scheduled work programme that will shape Bowleven’s future.”
The company holds, through subsidiary EurOil, a 100% stake in Etinde. The asset gives the firm about 900 square miles of exploration acreage.
Four wells have been drilled in the area since 2007, all of which were successful.