Bowleven

Annual General Meeting

1st December 2022

Presentation

Disclaimer

Important Notice

Nothing in this presentation or in any accompanying management discussion of this presentation (the "Presentation") constitutes, nor is it intended to constitute: (i) an invitation or inducement to engage in any investment activity, whether in the United Kingdom or in any other jurisdiction; (ii) any recommendation or advice in respect of the ordinary shares (the "Shares") in Bowleven plc (the "Company"); or (iii) any offer for the sale, purchase or subscription of any Shares.

The Shares are not registered under the US Securities Act of 1933 (as amended) (the "Securities Act") and may not be offered, sold or transferred except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any other applicable state securities laws.

The Presentation may include statements that are, or may be deemed to be "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "projects", "expects", "intends", "may", "will", "seeks" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions.

These forward-looking statements include all matters that are not historical facts. They include statements regarding the Company's intentions, beliefs or current expectations concerning, amongst other things, the results of operations, financial conditions, liquidity, prospects, growth and strategies of the Company and its direct and indirect subsidiaries (the "Group") and the industry in which the Group operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. The Group's actual results of operations, financial conditions and liquidity, and the development of the industry in which the Group operates, may differ materially from those suggested by the forward-looking statements contained in the Presentation. In addition, even if the Group's results of operations, financial conditions and liquidity, and the development of the industry in which the Group operates, are consistent with the forward-looking statements contained in the Presentation, those results or developments may not be indicative of results or developments in subsequent periods. In light of those risks, uncertainties and assumptions, the events described in the forward-looking statements in the Presentation may not occur. Other than in accordance with the Company's obligations under the AIM Rules for Companies, the Company undertakes no obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. All written and oral forward-looking statements attributable to the Company or to persons acting on the Company's behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in the Presentation.

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Corporate Highlights

Etinde OCM January 2022

New Age, LUKOIL and Bowleven communicated that they had selected the EG development option as the joint preference as it maximised our economic return for the lowest initial investment cost and can meet all SNH's domestic gas requirements.

New Age has sold its 37.5% stake and operatorship to Perenco; the transaction is subject to certain precedent conditions and regulatory approval in Cameroon.

Etinde OCM meeting November 2022

  • SNH approval of 2021 expenditure
  • SNH approval of 2022 current period expenditure and limited work plan
  • SNH appreciates progress delayed while conditions precedent in the New Age/Perenco transaction are dealt with.

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Corporate Priorities

  • Preserve liquidity
  1. Marginal cost reduction measures implemented in H2 2022 o Continuing focus eliminating non-critical expenditure; and
    1. Moving staff from full to part time short duration contracts where possible.
  • New Age reduced Etinde to 'care and maintenance' expenditure, especially during the H2/2022.
  • Board aims to maximise retention of cash funds to reduce the likely requirement to raise new funds as much as possible.
  • Discussions initiated regarding 2023/24 additional capital funding.
  • Early preparation for a equity raise in Q1 2023 underway - likely underwritten open offer keeping shareholder pre-emption rights in tact.

4

Challenges for 2023

Short to medium term funding issues:

  • At the time of the 2019 dividend payment, we factored in reaching FID by this stage; did not anticipate a long period of limited, slow progress.
  • Limited scope for material reduction in Bowleven's current operating costs.
    Moving staff to working part time is likely to save the company approximately $500 to $600k pa. (pending audit, governance & regulatory feedback).
  • Factors associated with Perenco taking over the operatorship of Etinde will most likely result in an increase of Etinde cash calls, offsetting any cash savings Bowleven can make.
  • Perenco may propose an alternate development scenario (e.g., an FPSO/FLNG combination) that may require new technical studies prior to approval; this will affect Etinde cash call amounts from Q2 2023 onwards.
  • Any FPSO based development is likely to require an extensive new FEED study to identify a robust budget for the development project as well as producing detailed FPSO design studies which will cause an increase to expenditure.

Overall, we expect higher expenditure; our cash flow modelling suggests current liquid resources are likely to be fully eliminated by end of 2023.

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BowLeven plc published this content on 01 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 December 2022 16:23:03 UTC.