UK 23:36 Tuesday, 29 September 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.
Resource companies are notoriously bad at meeting deadlines. When a delay is announced it is often a signal to ditch the stock. Judging by the response to Bowleven’s (BLVN) announcement this morning it seems the market is behaving true to form. Bowleven is down 1.25p to 33.75p, last seen. However, having spoken with the company’s PR representative, this drop could be a buying opportunity. But then again, I’ve been saying that since 38.25p!
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Comments
GheeBhee
Ben,
I wouldn’t take too much more notice of that other contact with an interest in Bowleven if I were you. Cameroon is officially bi-lingual for one thing but if he knew anything about french cultural influence in Africa he would have told you that the chances of a deal being concluded in August were surely so small as to be almost nil!
wildrides
Just face it ……….. its a Turkey .
Angeln1
No-one who buys oil shares should be surprised when there are delays, that is the nature of the beast generally – The farm-in might not complete, there is always that risk, but It would be surprising if it didn’t. I like the look of this shares assets and think it has excellent value into 2015 and beyond but a quick look indicates that actually the sp is valued almost smack on correctly with the current MC being £113 million. The farm in initial payment is $170 million or £102 million, not the $250 million mentioned above, they only get the other two $40 million payments later on and not necessarily in cash but in a free carry. They had cash in bank of $19 at the last 2013 accounts, so with cash-burn let’s say there is $10 million left. The only big sp drivers look to be 1. Being lucky and hitting oil in their Bomono drills later this year 2. Etinde coming into production which should yield them c. 5k boepd initially before production ramp up, and 3. the final two $40 mill payments being made, but I would not expect that for a while, it looks like 2015/16 might be BLVN’s time to shine.
If the farm in does fall through then there is only the assets underpinning the sp, and given AIMs reluctance to value shares in general by NAV there could be more downside. But again as per above, I would be confident the Farm-In will complete, though there is always risk. Anyhoo, good luck to all BLVN holders.