BOWLEVEN has said it is preparing to extend the deadline for the completion of a $250million (£155m) stake sale in Cameroon a second time as it awaits approval of the deal by the country's president.
Edinburgh-based Bowleven said the parties to the oil and gas deal are "progressing the extension" of the longstop deadline for the farm-out from Friday October 31 to December 31, to allow time for the official recording of a decree signed by President Biya approving the transaction.
The deadline for completion was moved five days before the first longstop date of August 31 to October 31, as Bowleven awaited the official ok for the deal.
The deal will lapse if it is not completed by the revised deadline unless the parties agree a further extension.
Bowleven is confident it will get the nod from President Biya for the deal, to sell 50 per cent of the Etinde permit to Cameroon's New Age and LUKOIL of Russia.
The company noted yesterday that Cameroon's Ministry of Mines has approved the farm-out.
It said: "As a result of the Government's official approval, the only remaining formality to transaction completion under the Etinde farm-out agreement announced with LUKOIL/NewAge on 24 June 2014, is the gazetting of the signed Presidential decree."
Bowleven added: "Whilst we do not expect it to be required, a $30m short term bridge facility has been signed with Macquarie Bank which, alongside the Group's current cash balance of circa $20m, provides financial flexibility pending transaction completion."
Chief executive Kevin Hart said completion of the transaction would unlock cash that the company could use to step up activity on Etinde and for drilling on the Bomono permit onshore.
Bowleven said a deal agreed in June to sell a stake in Bomono to Africa Fortesa Corp is being put into effect subject to government approvals.
Will Forbes, analyst at Edison Investment Research, noted when the Lukoil/New Age deal completes, Bowleven will get an initial $170m cash (£105m), in line with its market capitalisation.
Shares in Aim-listed Bowleven closed down 1.75p at 30.5p.
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