Oil explorer Bowleven cuts loss

Africa-focused oil and gas firm Bowleven yesterday said it was well placed to deliver value for shareholders after reducing full-year losses.

The company, which saw a boardroom coup by investor Crown Ocean Capital earlier this year, has cut operating costs and has a $86 million (£66m) cash balance at its disposal as it looks to take forward plans to progress its interests in Cameroon.

Losses before tax from continuing operations in the year to 30 June fell from $129.3m to $53.4m. No revenues were made for the second year running.

The firm said cost-cutting moves had seen its workforce cut from 40 to fewer than ten and its head office relocated from a “large prestigious Edinburgh building to a small operation near London Bridge”.

Chief executive Eli Chahin, appointed following the coup, said: “The board is now able to look forward to executing its strategy from a sustainable footing. After a year of significant strategic change for Bowleven, I am confident that the company is well placed to support the advancement of its existing asset base in Cameroon and has the potential to deliver shareholder value into 2018 and beyond.”

Craig Howie, an analyst at Shore Capital, which has a “hold” rating on the shares, said that under new management and with a significant change in strategic direction Bowleven had completed its organisational restructuring and had a healthy cash position and lucrative interest in the Etinde field.

“Offsetting these positive aspects are the slow progress towards drilling and development at Etinde and the new management team’s apparent lack of interest in analyst communication (or at least communication with us).”