Listed oil and gas company Bowleven is set to de-list from AIM and re-register as a private company, the firm announced today.
Bowleven is UK-based but with a focus on Africa, particularly a key interest in Cameroon. It holds a 25 per cent interest in the offshore Etinde Permit in Cameroon.
The company has been working with its joint venture partners to advance the development plan for the Etinde Permit, aiming to reach a final investment decision (FID), which would entitle Bowleven to a milestone payment.
However, progress has been slow, particularly after the planned sale of a significant stake by JV partner New Age was terminated in January 2024.
As a result, Bowleven has had to raise funds to cover its operational costs through mid-2025, with limited activity continuing at Etinde.
It revealed this morning that given the slow progress and financial uncertainties, its board has decided that delisting from the AIM market was in the “best interests of the company and its shareholders”.
The board cited high costs, regulatory burdens, and limited liquidity of its shares on AIM as key reasons for this decision.
They added that registering as a private company could reduce costs, provide greater access to specialised investors, and offer more strategic flexibility, which would be crucial to support the development of the Etinde Permit and securing the necessary funding.
Despite delisting, Bowleven stated that it remained committed to its long-term strategy of becoming a major oil and gas producer in Cameroon.
The company said it would continue to fund its share of Etinde costs and collaborate with JV partners to achieve FID.
The board said it believed Etinde remaind a a valuable energy asset.
It laid out an expected timetable of principal events, which included a general meeting scheduled for 28 August 2024 and the last day of AIM trading expected on 23 September 2024.
The company said Crown Ocean Capital, a major investor, would prove an “exit opportunity” for minority shareholders. The investor has laid out plans to pay 0.225p per share for investors who want to sell before the de-listing.
Payments for the exit opportunity are set to be made by 11 September 2024 for early tenders, with the cancellation set for 24 September 2024, and re-registration as a private limited company is expected by 25 September 2024.
Commenting on the news, CEO Eli Chahin said: “The board continues to be of the view that Etinde is a potentially substantial energy asset and core to the company’s strategy.”
“Whilst it has been a difficult decision to reach, having taken into account all relevant factors, the board believes that pursuing the cancellation is in the company’s best interests,” adding “to allow Bowleven to further reduce its overheads and provide financing and operational flexibility as it pursues its objective of monetising and generating value from its Etinde interest.”