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Bowleven Awarding Shares to Directors? Erm…

Dec 6, 2013 at 3:50 pm in AIM by contrarianuk

An announcement today from Cameroon focused oil and gas explorer, Bowleven. The company have awarded the directors significant numbers of LTIP (Long term incentive programme) shares with a 3 year vesting period. Given the bombed out state of the share price at 37.5p when the award was made, Kevin Hart (the Chief Executive) and the board of directors must be feeling very pleased with themselves! Excellent timing my friends!

Though, Hart’s decision to buy shares as part of the placing in November was not so well timed with a 100,000 purchase at £0.45p, underwater by quite some way already.

All eyes now on how fast Bowleven can get the EEAA (Extended Etinde Exploitation Application) through the Cameroon authorities. It was hoped that it would be delivered in the second half of 2013, but so far no news. Given the need to raise funds in mid-November it seems likely that a Q1 2014 approval is on the cards. Then there is the FID (Final Investment Decision) by partner Petrofac with a $500 million commitment to develop the field which is due by mid 2014, releasing $60 million for Bowleven if the decision is positive and bringing the hydrocarbons from the Etinde discovery to market.

In accordance with the Company’s remuneration policy the Company’s Remuneration Committee resolved at a meeting held on Wednesday 4 December 2013 to grant Awards under the LTIP to the following directors:-

Director GrantsThe number of shares comprised in the above Awards is based upon 75% of basic salary divided by 37.5 pence, being the Company’s closing share price on Tuesday 3 December 2013.

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