Bowleven farms down Etinde (Cameroon) to LUKOIL and NewAge
Bowleven is selling 50% of its interest in the Etinde permit for up to US$250 million. LUKOIL will acquire a 37.5% interest and NewAge will increase its interest in the licence from 25% to 37.5%. Wood Mackenzie values the net 40% stake (post-government back-in) at US$473 million (NPV10, June 2014), which is nearly double the consideration price. Our valuation falls to US$227 million under a 15% discount rate, which may better reflect the perceived above ground risk.