Proposed Tanzanian acquisition
Bowleven (L:BLVN) has announced a proposed acquisition of Tanzanian assets from Aminex (L:AMNX). The $28m deal (funded by a mixture of cash, carry, shares and contingent payments) will add a 25% interest in the Kiliwani North Development gas project and a 50% interest in the Rovuma PSA (appraisal/exploration). The Kiliwani North project is expected to produce first gas by the end of 2015, bringing in cash flows to offset Bowleven’s $10m carry of the Rovuma PSA work programme, where an existing discovery could be further de-risked and further upside explored for. Following this announcement and the recent full-year results, we expect to update our valuation and financial projections shortly.
The Ruvuma PSA includes the appraisal of the Ntorya-1 gas/condensate discovery, which has been ascribed contingent resources of 70bcf best estimate (153bcf pMean) with upside to be appraised. According to Aminex’s last financial report, several well locations have been identified and drilling could start in Q116.
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