Busy year ahead for BowLeven

2nd Nov 2009 07:46

Bowleven, the AIM-listed oil and gas exploration group focused on Africa, saw a $48.8m currency related gain wiped out by a $50.5m impairment charge on its EOV asset in Gabon.The impairment charge on the EOV has been recognised in the wake of the decision to defer the activities in 2010 required to realise project sanction for the field.The company, which currently produces no revenue, saw pre-tax loss narrow slightly in the year to 30 June from $10.50m to $10.18m.Cash expenditure and cash flows in the period totalled $69.9m, down from $73.5m a year earlier. The group currently has a cash balance of around $120m, following a $113m cash-raising exercise earlier this year. As a result of a farm-out agreement with Vitol E&P Limited the group also have access to $100m of funds, giving the group the required funding 'to carry out its intended 2010 work programme across its entire asset portfolio,' said Kevin Hart, chief executive.