Bowleven has completed the Etinde farm-out transaction and to confirm receipt of the initial $165 million cash proceeds (excludes estimated $5 million working capital adjustment).
The farm-out transaction comprised the sale of 30% and 10% interests in the Etinde Permit to LUKOIL and NewAge, respectively, in return for a total consideration of approximately $250 million. In addition to the $165 million initial cash proceeds Bowleven will receive the following:
•An estimated $5 million cash to follow for working capital;
•Up to $40 million (net) carry for two Etinde appraisal wells, including testing;
•$15 million cash to be received on completion of appraisal drilling; and
•$25 million cash contingent upon and to be received at Etinde development project FID.