Bowleven has entered into a farm-out agreement with Vitol E&P Limited (VEP) in respect of the Etinde Permit (Etinde), Cameroon.

The transaction comprises (1) the acquisition by VEP of an initial 25 percent interest in Etinde, in return for funding a $100 million gross work program; and (2) an option to acquire a further 25 percent interest, in return for funding an additional $100 million gross work program and paying $25 million in cash to the Bowleven group to progress Etinde activities.

This funding coupled with the proceeds from the recent placing provides Bowleven with increased financing flexibility to pursue the various exploration and development opportunities identified in its portfolio.

VEP is part of the Vitol Group, a major independent energy trading company, headquartered in Geneva, with a breadth of experience in the oil and gas industry. This includes development, marketing and project finance expertise. Bowleven consider that this expertise should be of real benefit to the resulting joint venture as it moves from exploration to development in Cameroon.

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