UK 22:05 Tuesday, 29 September 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
This morning Bowleven (BLVN) announced its full year results. The company has made excellent operational progress and its balance sheet remains strong. On 30 June Bowleven was debt free, had a cash balance of $145.3million (£96million) and the expectation of the equivalent of up to a further $80million investment under the terms of the Etinde farm out ($40million free carry in two appraisal wells and $40million in cash payments, subject to certain milestones). Although the cash balance will have been eaten into over the last 4 months, during which two exploration wells were drilled at Bomono, Bowleven is in rude financial health. So why does the market continue to punish its share price?
Already a member? Sign in
• All premium articles
• Tom Winnifrith’s Bearcast
• Access to all the entire nearly 13 year archive
• ShareProphets Daily Newsletter
Cancel any time
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments
wildrides
Whats wrong ………….err its not producing anything …………zilch , zippo , nowt . There is no revenue at all , just ifs, buts, and maybes . Its living off selling its assets just like UK Dairy Farmers . Cash is what its got and thats in the price . When it discovers a (new to portfolio) producing asset or starts producing its self then things will no doubt change . Stuff in the ground unfortunately aint worth much in these present price regime times . Even cash can be worth less than cash at the present if the management is perceived as inept . No one can be sure it will still be there when they go looking for it !
Garth Nicholson
I gave up on Bowleven a few months ago and took my losses on the chin. The market doesn’t believe in them and Hart and Co have consistently feathered their own nests at every opportunity. Maybe a boardroom shakeout – but they will depart as wealthy men – will help, somehow I doubt it. Agreed the figures show a buy – but not for me.
Daniel Victor
Part of the problem is that oil exploration is generally a losing proposition while the oil price is this low.
VINES
whats the average return on investment in AIM oil sector? the answer is why the market discounts cash in oil exploration companies, look at sey the market knows the directors will spunk most of it away
MrMoto
It’s a Chris Oil stock, that’s what
alcira16247
Ben
The admirable Wildrides hits the nail on the head, again!
Bowleven is burdened with probably the most useless avarice motivated board of directors on the whole of AIM! Paying themselves salaries comparable to boards of leading multi internationals! Look at the shocking cash burn! These guys are USELESS!
Shareholders anger is palpable! Wish I’d a job that paid 500K for doing bugger all!
The market don’t lie, it has no faith whatsoever in the present boards ability to enhance shareholder value!
With a board capable of taking advantage of buying out many distressed companies with heavily leveraged marginal producing assets the share price would be double what its is now.
Forget about Big Dave and Andrew Bell etc, attack the present Bowleven directors, they are an utter disgrace!
If they had even shred of decently they would fall on their swords!
Kit Ingoldby
I don’t care how good the fundamentals of a company are if it is run by a management of gorging pigs.
Paul Curtis
Ben
Market valuing Etinde at zilch. Why didn’t $50bn Lukoil pull out pre deal completion as oil plummeted from over $100 to $50 and sanctions exacerbated cash constraints? Either they are idiots or Etinde pretty damm sexy?
My view is shares languishing because Bomono not sexy and possible cash drain and otherwise no news events to generate investor interest. I recently sold a chunk of my holding at 26/27p because even better, more decimated value elsewhere.
BLVN is stunningly cheap but short term dead money. And FWIW I’ve spoken to and met Hart multiple times and found him to be 100% honest. I accept others disagree but that’s my experience.
Ben Turney
@Wildes – Producing nothing now, but Etinde is at appraisal phase and BLVN is free carried through that, so it is on the cusp. Now, shoe, be off with you, back to LGO!
@Garth – pretty much summed up my hesitancy, but I have added rather than ditch…
@Daniel – sure, but how long will it remain low? Saudi price war looks like it is really hurting the shale boom now
@Vines – Not been much evidence so far of directors wasting the money. If anything are they being too cautious with it?
@MrMoto – that is an excellent point!
@Alcira – those are the complaints of last year, but if you look at BLVN’s performance this year relative to the share price and the company is performing well. Hart will never be able to win back support of long term holders, but on fundamentals this looks like a gimme
@Kit – Compensation relative to long term performance is definitely out of sync
@Paul – excellent point about the Etinde farm-out. I think we talked about that earlier in the year, when I wondered if the collapsing oil price might lead to a renegotiation of terms. It didn’t and that is a positive indicator.
wildrides
Okay Ben ………….. I am off to my 900 BOPD per day output at LGO for 0.45p a share ;-)
alcira16247
Ben
This company has never made a profit, never paid a dividend….. hell, it hasn’t even produced a barrel of oil ….. despite raising in the region of £220 million from shareholders!
From a share price of £3.25 four years ago to 0.25 pence yesterday …..that’s some performance!
Ordinary shareholders have lost out mega time whilst executive board members have enriched themselves handsomely.
Not only awarding themselves with more than generous basic pay packages, but additional benefits in kind, performance bonuses, deferred share awards, long term incentive plans…… the list seems to grow year on year!
The seven executive directors paid themselves basic salaries in excess $2.365 million with the talented Mr Hart taking the lion share. Added together with freebie shares they awarded themselves, you can see why us ordinary long suffering shareholders are somewhat critical of the board and its perceived greed measured against their achievements.