Bowleven is considering a move into Angola following what directors described as a year of strong delivery for the oil and gas independent, which is focused on west Africa.

Bowleven is considering a move into Angola following what directors described as a year of strong delivery for the oil and gas independent, which is focused on west Africa.

Edinburgh-based Bow-Leven is drawing up plans for a possible bid to win a licence to explore onshore in Angola, whose government will hold a licensing round this year.

Bid interest will probably focus on the deeps offshore, where the majors have already made huge finds. However, Kevin Hart, chief executive, said BowLeven might have an edge focusing onshore in partnership with a local player.

Hart said bidding for licences would be the likely route to expansion for BowLeven, which was formed to focus on the waters off Cameroon, where it was rocked by drilling dis- appointments under Hart's predecessor.

However, after master-minding the £30m acquisition of Gabon-focused FirstAfrica last year, Hart said further purchases had not been ruled out.

BowLeven does not have any production, but after raising £67m from investors in the year to June it has plenty of cash.

Speaking after BowLeven announced that annual losses widened from £2m to £4.8m, reflecting increased activity, Hart said BowLeven hoped to make significant progress in coming months.

Following successful drilling off Cameroon in the last year, directors hope to realise some value from BowLeven's acreage in the next 12 to 18 months.

On block seven BowLeven has identified two fields which might form the basis of a stand-alone scheme to produce condensate for sale through Cameroon.

BowLeven has been approached by firms interested in farming in to the block. Hart said directors wanted to complete further appraisal work before cutting any deals.

BowLeven is preparing to seek partners to work on block five off Cameroon, where it announced a discovery in July.

In Gabon the company hopes to start production from the offshore Orovinyare field early in 2009. It recently farmed out a stake in an onshore block to Addax.

Hart noted that exploration success by firms including Noble Energy near BowLeven's acreage helped stimulate interest in the area.

While strong oil prices have prompted authorities in countries like Russia to renegotiate contracts agreed on terms that had favoured the majors, Hart appeared to be unconcerned about the political risks of operating in west Africa.

"When the cake gets bigger because oil prices increase, political risk increases. There should be some flexibility in the system so contracts reflect that," he said.

As BowLeven does not have production-sharing contracts for gas or condensate there are no deals to be ripped up. If and when it wants to develop a field it will have to negotiate such a contract.

After investing more than other sector players in Cameroon in recent years, it has worked hard to maintain good relations with government.

Shares in AIM-listed BowLeven fell 5p to 329p.

BowLeven raised £55m at 650p per share in October 2005, before suffering two costly drilling set-backs under former management, led by Philip Rhind. He was dismissed for alleged gross misconduct last February.

Hart said: "We are quite a difficult business to value. We have a significant resource base, the value of which will become clearer as we go forward."