LUKOIL has acquired a 37.5-percent interest from the British company Bowleven Plc in the development project of the Etinde site at Cameroon’s shelf as part of a production-sharing agreement (PSA).

The transaction will be completed upon approval on the part of Bowleven Plc’s shareholders and the government of Cameroon.
The Etinde site is located in the Gulf of Guinea near the border with Equatorial Guinea and includes three license blocks with a total area of 2,300 square kilometers.

Thirteen out of the sixteen wells drilled at the site demonstrated positive results, and the discovered reserves are now being appraised. The drilling of two more wells is scheduled for next year. The final investment decision upon the expediency of further development of the site is expected to be made in 2015.

Alongside with LUKOIL, the British company New Age (African Global Energy), already the holder of a 25-percent stake, acquires another 12.5% in the Etinde PSA from Bowleven Plc.

When both transactions are closed, Bowleven Plc will retain 25% in the Etinde PSA and yield to New Age its rights as the project operator.

About Lukoil

LUKOIL is a major international vertically-integrated oil & gas company, accounting for 2.2% of global output of crude oil.
The strong position, which the Company enjoys today, is the fruit of 20 years work to expand the reserve base, increasing business scale by seeking out and executing strategic transactions.

About Bowleven

Bowleven is an African focused oil and gas exploration group, based in Edinburgh and traded on AIM. Bowleven’s strategy is focused on creating and realising material value through exploration led organic growth. Bowleven holds equity interests in five blocks in Cameroon, with three blocks located offshore in shallow water and two onshore. All of these blocks are operated by Bowleven. It is anticipated that on completion of the farm-out transaction outlined in this announcement operatorship of the offshore Etinde Permit in Cameroon will transfer to Camop. Bowleven will remain operator of the onshore Bomono Permit in Cameroon. Bowleven also holds an equity interest in an onshore block in Kenya, operated by Adamantine Energy, and has been awarded three blocks in Zambia, with applications on two blocks pending.