Bowleven has announced that the Etinde farm-out transaction with LUKOIL/NewAge is at the final stage of completion.
Bowleven announced its intent to sell part of its interest in the Etinde Permit, offshore Cameroon, by entering into a conditional agreement with LUKOIL and NewAge in June this year.
Following the Government’s official approval of the assignment of equity interest and transfer of operatorship, the formal decree award is being progressed by the Cameroon Authorities and the company says that it is understood that the Presidential signature is imminent. As such, while the formal gazetting of the decree remains achievable by December 31, 2014, Bowleven says all parties to the farm-out have agreed to an extension to the longstop date to February 28, 2015 to allow additional time if required.
The Etinde exploration production sharing contract (PSC) which covers the Etinde Permit acreage not included within the Etinde Exploitation Authorisation (EEA) awarded in July 2014, formally expired on December 22, 2014.
According to Bowleven, an application has been submitted for a new PSC over this area (covering blocks MLHP-5 and MLHP-6) and discussions to retain this acreage are underway with the Cameroon Authorities. Current Etinde development plans are focused on the 461km² area covered by the EEA which gives exploitation and development rights for an initial period of 20 years.