Bowleven Signs MOU for Supplying Gas to the Fertilizer Plant

Bowleven, the West Africa focused oil and gas exploration group traded on AIM, announces that its wholly-owned Cameroon operating subsidiary, Euroil Limited (“Euroil”), has signed a memorandum of understanding (MOU) relating to the supply of gas from the Etinde Permit. Signing of a Memorandum of Understanding between SNH, German company Ferrostaal GmbH and EurOil Ltd with a view to supplying natural gas to the chemical fertilizer plant.

The Executive General Manager of the National Hydrocarbons Corporation (SNH), Mr Adolphe MOUDIKI, the Senior Vice-President of German company FERROSTAAL GmbH (FERROSTAAL), Mister Kaspar EVERTZ, and the Chairman of EurOil Limited (EUROIL), Chief TABETANDO, inform the public of the signing on 24 April 2012 at the head office of SNH in Yaoundé, of a Memorandum of Understanding for the supply of natural gas to the chemical fertilizer production plant due to be constructed in Limbe, Cameroon.

Under the Memorandum of Understanding, the three companies intend to cooperate towards the evaluation, development and putting on production of the gas fields in the EurOil operated Etinde permit, within a time limit compatible with the construction of the plant, in order to ensure that it is supplied with natural gas as from year-end 2015. The estimated gas requirements of the fertilizer plant stand at 70 million cubic feet per day, for a minimum period of ten years which the parties wish to extend to 20 years, with the contribution of other potential or identified gas fields on the EurOil operated ETINDE permit.

The present Memorandum of Understanding is in line with the one signed by SNH and Ferrostaal on 13 October 2011, on the execution of a feasibility study. The pre-feasibility study was completed by the end of March 2012, and resulted in the preliminary sizing of the plant and the identification of a site for its implantation around Limbe. The signing of this second Memorandum of Understanding with the involvement of an upstream gas operator marks a major step of this important project which is expected to speed up the agricultural revolution advocated by the Head of State, His Excellency Paul BIYA, as part of his policy of Major Accomplishments.

Kevin Hart, Chief Executive of Bowleven plc, commenting on the MOU said:
“We are delighted to be supporting Cameroon in its ambition to develop the country’s gas resources. Cameroon has a strong and growing domestic fertiliser market and we look forward to working closely with SNH and Ferrostaal to deliver the project. We are encouraged by the progress in our route towards the monetisation of Bowleven resources. This is a positive step towards the realisation of the potential of our acreage.”