Scots oil firm Bowleven says it expects to secure a key 20-year licence to develop oil and gas in Cameroon.
The Edinburgh-based firm, which is focused on exploration projects in Africa, submitted an expanded exploration application for Etinde earlier this year, following discussions with Cameroon’s authorities.
The company’s current exploration rights to the region expire at the end of the year, but Bowleven chief executive Kevin Hart said he was confident the firm would secure the extended deal needed to open up the region and cover the costs of a final investment decision.
“Whilst the granting of the EA has taken longer than expected to pass through the Cameroon authorities, all indications are that this process is almost complete with an EA award anticipated shortly,” he said.
“The EA award gives development rights for an initial 20 year period and provides access to sources of capital to fund the company through to FID.”
The firm, which received a boost after oil tycoon Ian Suttie’s First Oil group took a stake last year, posted losses of almost £4million for the six months to the end of 2013, most of which came through administration expenses, although this was a narrowing compared to the previous period’s £5.6million loss.
But the company continues to operate debt-free and said it has reserves of almost £23million as it looks at possible funding options for its projects in Africa, including the Etinde development and its exploration projects in Kenya.
Seismic data on the Kenyan prospects would be secured this year, along with drilling in Zambia and Bomono.
“We continue to focus on exploiting our exploration portfolio and look forward to seismic activity in Kenya and exploration drilling on Bomono in the coming period,” said Mr Hart.
