BOWLEVEN, the oil and gas firm which moved its headquarters from Edinburgh recently, is facing fresh turbulence after parting company with two members of the management team appointed following a boardroom cull in March.
The Aim-listed company has started the search for a new chairman after Chris Ashworth notified the firm of his intention to step down with immediate effect.
Bowleven said Mr Ashworth had been informed prior to Wednesday’s general meeting that the continuing directors would propose a resolution for his removal as chairman, and as a director, at the next board meeting.
It told investors Joe Darby had ceased office as a non-executive director after 88.45 per cent of votes cast at the general meeting opposed his re-election to the board.
Former chief operating officer David Clarkson resigned from the board at the meeting. It was announced in November that he would do so. Mr Clarkson was the last remaining member of the old guard of directors of Cameroon-focused Bowleven.
Former chief executive Kevin Hart and four other directors were voted off the board at a general meeting in March following a campaign for change led by the Crown Ocean Capital investment firm.
It accused the management team led by Mr Hart of destroying significant shareholder value after incurring heavy losses under a strategy that involved costly exploration activity in Cameroon.
After leaving Bowleven in March, Mr Hart said the company had found a lot of oil and gas off Cameroon in his ten years in charge but was frustrated by geopolitical factors.
Crown Ocean had submitted resolutions proposing the removal of all directors except Mr Clarkson.
Its resolutions for Mr Ashworth and turnaround expert Eli Chahin to be appointed to the board were passed at the March meeting.
Former chairman Billy Allan was re-elected. He resigned weeks later and was succeeded by Mr Ashworth, an experienced lawyer.
Last month Mr Ashworth said the tireless efforts of Mr Clarkson and Mr Chahin, who is chief executive, had allowed the group to achieve a material transformation. The reforms involved curbing exploration to help cut costs, moving the head office to London and shedding around 30 jobs.
The firm then said it was appropriate to close the chief operating officer post held by Mr Clarkson, as it had become a holding company.
In its general meeting presentation Bowleven said it was dedicated to realising material shareholder value from its assets in Cameroon whilst employing a rigorous approach to other value-enhancing opportunities.
It has reached an outline agreement with partners to drill two appraisal wells on the Etinde licence off Cameroon next year. Boweven sold stakes in Etinde to New Age and Lukoil in 2014 in a $250m deal struck by Mr Hart. It retains a 20 per cent interest.
Bowleven thanked Mr Ashworth for his contribution and for the role he played in providing guidance through a period of transition. It thanked Mr Darby for his service and for the valuable role he played.
Mr Chahin remains on the board with Matt McDonald, a lawyer who became a non-executive director in August after Crown Ocean requested his appointment.
Mr Darby was appointed in April. Bowleven noted then he had more than 40 years’ oil and gas industry experience.
Owned by financiers Christian Petersmann and Konstantin Stoyanov, Crown Ocean has a 28.18 per cent stake in Bowleven. The oil and gas firm declined to comment on why the continuing directors had proposed a resolution for Mr Ashworth’s removal or on the vote against Mr Darby’s re-election.
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