Bowleven, the Africa focused oil and gas, Exploration and Production Company with key interests in Cameroon, today announces its unaudited interim results for the six months ended 31 December 2022.

HIGHLIGHTS

Operational

Etinde operations are currently in a 'care and maintenance' mode with limited ongoing activity other than New Age's maintenance of the Cameroon project office. This activity level is expected to continue until the conditions precedent to the completion of the disposal of New Age's Etinde operating interest to Perenco are satisfied and regulatory approval is provided. As such Bowleven expects minimal capital outlay related to the Etinde asset until the completion of New Age's disposal.

Corporate

The loss for the 6-month period was $1.0 million compared to $1.3 million for the same period in the prior year. The decreased loss is primarily due to lower recharges from Etinde, as project development activities have been reduced, and further expenditure reduction measures imposed by Bowleven's Board.

The Group cash balance as at 31 December 2022 was approximately $0.25 million with a further $2.2 million held in a financial investment, with no debt or material financial commitments. As at the end of March 2023 the financial investment has been partly converted to cash to be used to fund ongoing operations, with the net financial investment now at $1.4 million. As at 29 March 2022 the Group cash balance is circa $0.9 million.

The Directors have temporarily reduced UK staffing and overhead costs from January 2023 until Perenco become the operator at Etinde and further financing is secured. As a result, the current Bowleven expenditure run rate has been temporarily reduced to between $125,000 and $200,000 per month (with actual monthly expenditure depending on Etinde cash call amounts) to extend Bowleven's current cash resources. 2

As set out in the Group's final results statement on 1 November 2022, whilst expenditure on the Etinde project is currently low, Bowleven anticipates a higher expenditure later in 2023 on the basis that, once Perenco's Etinde interest acquisition has been completed, it may seek to take a fresh look at Etinde development options and put in place a full development team. Assuming Perenco and New Age's transaction completes in June 2023, Bowleven estimates that FID could be in late 2024, subject to Perenco's initial review of the Etinde development options. Based upon this potential timing, when combined with Bowleven's current cash and liquid resources, the Directors' cash flow forecasts and projections indicate a material risk that Bowleven will fully utilise its existing cash resources by the end of 2023. This gives rise to a material uncertainty regarding the going concern status of the Group.

The Board has therefore been considering its fundraising options and expects to seek to raise additional equity capital in 2023 to help to finance the Group's ongoing corporate activities and to assist financing its share of the future expenditure as the Etinde project progresses towards FID. Planning for an equity fundraising remains at an early stage and there can be no certainty that a fundraising will be concluded, nor as to the structure or terms of any such fundraising. To the extent possible, the Board will seek to respect shareholders' pre-emption rights. Bowleven will make further announcements as appropriate.

Eli Chahin, Chief Executive Officer of Bowleven plc, said: 'We remain on the verge of what we believe to be a major turning point in the business with the expected upcoming change of the Etinde operatorship once Perenco secures regulatory approval. This is expected to be a key milestone in progressing what is hoped to be a transformational energy project for Cameroon, accelerating what has to date been a challenging timetable towards hydrocarbon production at Etinde for the benefit of all the JV Partners. As demonstrated by the recent signing of a bilateral co-operation agreement on hydrocarbon monetization with neighboring Equatorial Guinea, we are on the cusp of a new energy horizon for Cameroon that will impact the lives of many. We look forward to keeping our shareholders abreast of the anticipated positive developments over the coming months.'

Contact:

Tel: 00 44 203 327 0150

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