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What: Shares of BowLeven (LSE: BLVN), the Africa focused oil and gas explorer, soared by just under 12% during early trade this morning after announcing the Cameroon government has backed the its Etinde Exploitation Authorisation Application (EEAA).
This followed a Special Operation Committee Meeting held between Cameroon State and the Contractor (EurOil and its partner CAMOP) in late May, after which a formal resolution was signed.
So what: The AIM-listed BowLeven first submitted the EEAA in January. The application defines the means of monetising the Etinde hydrocarbons by supplying treated gas to a government sponsored fertiliser plant. BowLeven will be granted development and exploitation rights over block MLHP-7 for an initial period of 20 years.
BowLeven’s chief executive, Kevin Hart, commented:
“We are delighted to have achieved this key milestone in the plans to develop Etinde and to have taken this important step towards the award of an EA.”
“This will enable the progression of the exciting development opportunities on Etinde.”
Now what: In recent years BowLeven has enjoyed positive results from its offshore assets in Cameroon but, dependent on the latest news, performance can be volatile.
BowLeven has a 52-week high of 73p and a 52-week low of 28p.
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Mark does not own shares in BowLeven.