Bloomberg News

BowLeven Raises $124 Million After Cameroon Oil Discovery

October 19, 2011

(Updates with closing share prices in fifth paragraph.)

Oct. 19 (Bloomberg) -- BowLeven Plc, a U.K.-listed oil explorer focused on Africa, raised $124 million in a share placing today after a discovering oil at a well in Cameroon.

The shares sold at 103 pence each, a 37 percent premium to the level the stock was trading at last week before the discovery in the Etinde permit was announced on Oct. 14. The Edinburgh-based company sold 77.5 million shares, representing a 36 percent increase in ordinary share capital.

The funds will be used for BowLeven’s drilling program next year. Geneva-based Vitol SA, a parter in Cameroon, said Aug. 1 that it wouldn’t participate in the Sapele-3 well that went on to encounter a “good quality” reservoir. BowLeven shares jumped the most in 2 1/2 years on news of the find.

“We had thought there was a strong possibility management would look to capitalize on last week’s share price strength,” Royal Bank of Scotland Plc analyst Phil Corbett wrote in an e- mailed note. “The pressure is now on to deliver significant value for shareholders in 2012.”

BowLeven fell 4.8 percent to 109.5 pence as of the 4:30 p.m. London close.

--Editors: Alex Devine, Alastair Reed, Hilton Shone

To contact the reporter on this story: Brian Swint in London at bswint@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


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