30 March 2016

Bowleven plc ('Bowleven' or 'the Company')

Interim Results Announcement

Bowleven, the Africa focused oil and gas exploration group traded on AIM, today announces its interim results for the six months ended 31 December 2015.

HIGHLIGHTS

Operational

Bomono

·   Moambe and Zingana extended well tests completed and wells now suspended pending ongoing evaluation.

·   Bomono Exploitation Authorisation Application (BEAA) submitted to the Cameroon authorities based on an initial in-situ small scale gas to power development.

·   Discussions commenced with potential gas offtakers and MOU entered into with ENEO.

Etinde

·   Two appraisal well locations agreed with our partners targeting combined additional in-place volumes of approximately 1 to 2 tcf of gas and associated liquids.

·   Well design and planning underway with tendering anticipated in 2016 to exploit low cost/high rig availability operating environment.

·   Ongoing operator evaluation of development options based on LNG, power and fertiliser gas offtake solutions.

·   Operator-led discussions ongoing with Government on the potential to advance the Etinde development through an offshore processing facility.

Other

·   Rationalisation of portfolio in current environment to align with strategy.

·   Focus on near-term production and infrastructure-led exploration.

Corporate

·   Group cash balance at 29 March 2016 circa $100 million; no debt.  No outstanding work programme commitments.

·   Under Etinde transaction a further $15 million cash receivable at end September 2016 with access to a $40 million (net) carry for two appraisal wells, including testing.

·   $133 million impairment following prolonged market downturn; reflects revised commodity price ($65 per bbl) and planning assumptions on existing asset portfolio.

·   Intensive screening of multiple new venture investment opportunities is continuing; capital disciplined approach maintained.

OUTLOOK

Key objectives for the next 12 months include:

·    Working with the Etinde joint venture partners to enable earliest appraisal drilling and testing, together with the evaluation of additional offtake solutions and the progression of Etinde development planning.

·    Securing the Exploitation Authorisation (EA) for Bomono to enable progression towards early development.

·    Advance development planning, gas sales discussions and acreage evaluation on Bomono post drilling and testing activity.

·    Active screening of new ventures opportunities to augment the Group's existing asset base and build sustainability through entry into producing or near-term producing assets and infrastructure-led exploration.

·    Protect balance sheet strength by maintaining a disciplined approach to the consideration of further investment opportunities.

Kevin Hart, Chief Executive Officer of Bowleven Plc, said:

"We have continued to make steady progress towards our objective of converting resources to reserves in Cameroon. An Exploitation Authorisation Application was submitted to the Cameroon Authorities to enable development progression following the completion of drilling and testing activities at Bomono and meanwhile planning and evaluation work is continuing.

 On Etinde, appraisal drilling and advancing development plans remain the focus under the operator, NewAge.  With planning underway and tendering expected to follow, the joint venture is ideally placed to exploit the current environment of reduced costs and higher rig availability, with appraisal drilling expected to commence in 2017. Bowleven is covered for its share of drilling/testing on the two wells via the $40 million net carry from the Etinde farm-out transaction and will receive a further $15 million in cash in September 2016.

The macro-economic environment of prolonged lower oil prices has had sector-wide repercussions. The Group's strong balance sheet of circa $100 million in cash and no debt or outstanding work programme commitments means it is well positioned to manage the challenges faced by the industry and to exploit opportunities as they arise. As the downturn persists the number of potential opportunities is increasing. Whilst the evaluation of such opportunities is time-consuming, we continue to exert a rigorous screening approach when assessing potential value-creating transactions for shareholders whilst ensuring that our key differentiating feature of balance sheet strength is maintained. 

We are optimistic that portfolio enhancing transactions can be identified and delivered alongside the progression of our existing asset base and look forward to making further progress in the coming year."

ENQUIRIES

For further information please contact:

Bowleven plc

Kevin Hart, Chief Executive                                       00 44 131 524 5678

Kerry Crawford, Finance Director    

Brunswick Group LLP

Patrick Handley                                                          00 44 207 404 5959

Simon Maine                                                  

Macquarie Capital (Europe) Limited (Nomad)                                              

Jon Fitzpatrick                                                            00 44 203 037 2000

Ken Fleming

Nick Stamp

The Interim Results presentation and a copy of this announcement are available on the Bowleven website www.bowleven.com

This announcement may include statements that are, or may be deemed to be "forward-looking statements".  These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "projects", "expects", "intends", "may", "will", "seeks" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions.  These forward-looking statements include all matters that are not historical facts.  They include statements regarding the Company's intentions, beliefs or current expectations concerning, amongst other things, the results of operations, financial conditions, liquidity, prospects, growth and strategies of the Company and its direct and indirect subsidiaries (the "Group") and the industry in which the Group operates.  By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future.  Forward-looking statements are not guarantees of future performance.  The Group's actual results of operations, financial conditions and liquidity, and the development of the industry in which the Group operates, may differ materially from those suggested by the forward-looking statements contained in the announcement.  In addition, even if the Group's results of operations, financial conditions and liquidity, and the development of the industry in which the Group operates, are consistent with the forward-looking statements contained in the announcement, those results or developments may not be indicative of results or developments in subsequent periods.  In light of those risks, uncertainties and assumptions, the events described in the forward-looking statements in the announcement may not occur.  Other than in accordance with the Company's obligations under the AIM Rules for Companies, the Company undertakes no obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.  All written and oral forward-looking statements attributable to the Company or to persons acting on the Company's behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in the announcement.

Notes to Editors:

Bowleven is an African focused oil and gas exploration group, based in Edinburgh and traded on AIM. Bowleven's vision is to build an African focused exploration and production company  focused on creating and realising material value through exploration-led organic growth and niche acquisitions.  Bowleven holds equity interests in three blocks in Cameroon, with one block located offshore in shallow water (operated by NewAge) and two onshore (operated by Bowleven).

Notes to Announcement: 

1.  The technical information in this release has been reviewed by Ed Willett and David Clarkson, both qualified persons for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies.  Ed Willett, Exploration Director of Bowleven plc, is a geologist and geophysicist, a Fellow of the Geological Society (FGS) and a member of the Petroleum Exploration Society of Great Britain (PESGB) with extensive experience across a wide variety of petroleum provinces. David Clarkson, Chief Operating Officer of Bowleven plc, is a Chartered Engineer and Fellow of the Institution of Mechanical Engineers with extensive oil and gas industry experience. 

2.  The information in this release reflects the views and opinions of Bowleven and has not been reviewed in advance by its joint venture partners.

CHAIRMAN'S AND CHIEF EXECUTIVE'S REVIEW

The last eighteen months have seen an extreme decline in world oil prices as increasing supply, driven to a large extent by the dramatic and rapid increase in US shale oil production, has outstripped demand. As a direct consequence, the upstream industry has experienced an almost unprecedented deterioration in the investment climate resulting in many companies substantially cutting administration costs and planned capital expenditure. In many instances these actions reflect not just a need to adjust to a lower price environment, but are borne out of a real and ongoing fight for survival.

The resultant job losses and the withdrawal of both human and financial capital from the sector have combined to create an extremely challenging backdrop against which companies are being forced to rapidly evolve in order to have any chance of offering acceptable returns to investors. The resulting business climate is exceedingly dynamic with the impacts on individual companies varying significantly, leading to the potential for significant partner and stakeholder misalignment.

As a consequence of the completion of the farm-out of two-thirds of Etinde to LUKOIL and NewAge approximately 12 months ago, for a total aggregate consideration of $250 million, Bowleven is well positioned in the current market to endure the challenges faced and to focus on realising the value of its existing asset base, supported by a healthy balance sheet with no debt constraints or refinancing issues as a distraction. However, we are not immune to these testing market conditions which are impacting the decision making processes of our partners and host Governments. The lower oil price also puts real pressure on domestic gas prices, as whilst the environmental arguments are stronger than ever, the financial arguments for substitution of gas for oil are far less persuasive than in a $100 universe. Given the current macro-environment we have reduced our long-term oil price assumption used in assessing the carrying value of the Group's intangible assets to $65/bbl. Consequently, as is now prevalent within the industry, an impairment charge has been recognised in the financial statements.

Against this difficult backdrop, we continue to focus on our primary objectives of:

1.  Working with our Etinde partners to convert our existing resources into reserves and also targeting potentially substantial volume additions through further appraisal drilling.

2.  Continuing evaluation of our existing discoveries and further prospective resources on Bomono in order to expediently realise a commercial development and achieve first production and cash flow.

3.  Evaluating opportunities to augment the Group's existing asset base.

In addition, alongside these challenging conditions, the Group continues to exert capital discipline and to pursue G&A cost reduction initiatives.

Consistent with this, our forthcoming activities encompass:

Etinde Development and Appraisal Drilling

The current approved 2016 joint venture budget includes expenditure for the drilling of two appraisal wells at the previously agreed locations. The continued downturn and the worsening industry economic outlook in Q1 2016 has seen a revision in available joint venture capital and as a consequence drilling is now expected in 2017.   Whilst a schedule slippage is disappointing as Bowleven is eager to drill the wells and under the farm-out terms with LUKOIL and New Age is carried for up to $40 million net to its share of the appraisal drilling and testing costs, the upside potential to be targeted by the wells remains. 

The appraisal locations previously identified have the potential to add significant resources within the Intra and greater Intra Isongo formations, with the combined additional targeted un-risked P90 in place volumes being 1 to 2 tcf of gas and associated liquids.

The Operator, NewAge, is seeking to optimise a schedule which delivers the appraisal wells and a potential early production scheme through an offshore processing facility. It is currently anticipated that drilling preparations including tendering will continue to be progressed in 2016 so as to exploit the low cost and high rig availability operating environment created by the oil price downturn, with drilling expected in 2017.  Meanwhile on development plans, discussions are ongoing with partners and Government officials regarding the potential advancement of an initial development of the existing discovered resources which are sufficient to support either a standalone fertiliser, power generation or BLNG project gas offtake solution.  The combination of high well deliverability, a reduced cost environment and attractive fiscal terms means that project economics remain robust even at depressed oil prices.

Bomono Forward Activity

With drilling and testing now complete at Moambe and Zingana, attention is now focused on how best to move towards development. The Bomono Exploitation Authorisation Application ("BEAA") was submitted to the Ministry of Mines on 11 December 2015 and we are in regular dialogue providing any clarifications requested pending award. The application envisages a small scale gas-to-power development starting with the two existing wells with a view to expanding ultimately to a larger scheme, provided further drilling of the acreage proves up the requisite volumes.

A full inventory of the existing contingent and prospective resources is being compiled post completion of drilling and testing activities.

In addition, development planning work is progressing and discussions are also ongoing with ENEO under the existing MOU concerning the possible sale of gas.

Kenya and Zambia

In part as a consequence of the fall in world oil prices, a portfolio rationalisation has been instigated, to ensure continuing alignment with Group strategy. Consequently, a detailed review of the technical and commercial potential of our non-core interests in Kenya and Zambia is being undertaken to determine the Group's forward plans in these countries.  As a consequence, Bowleven does not intend to pursue its application in Zambia.

To date Bowleven has been carried for the majority of its work programme in Kenya, on which the first phase of the PSC is set to come to an end in May 2016, and minimal expenditure has been undertaken on Zambia. 

New Ventures

We continue to work hard at screening new venture opportunities with a view to adding to the Group's existing asset base, in line with the Group's strategy. This includes focus on near-term production and infrastructure-led exploration opportunities.  This is a very time consuming activity which requires a substantial degree of rigour and discipline.  If and when a deal is concluded it is essential that we do not prejudice the strength of our balance sheet or our ability to see out the current downturn.

OPERATIONS

Etinde Exploitation, Offshore Cameroon (20% equity interest)

The Etinde farm-out transaction completed around a year ago, following which operatorship transferred to NewAge, supported by an expanded joint venture including LUKOIL.

From a development perspective, the number of competing users for gas in Cameroon is expanding and includes fertiliser, power and LNG projects. Whilst at present there is sufficient gas to meet the demands from one of these offtake solutions it is hoped that the planned drilling campaign will discover additional volumes which are sufficient to enable multiple development solutions. A key focus area for Etinde is therefore on getting the two appraisal wells targeting the Intra Isongo drilled so that any additional hydrocarbon volumes available for development can be determined. Bowleven is covered for its expected share of the drilling/testing of these two wells via a $40 million (net) carry secured under the farm-out agreement.

The prevailing market conditions however are proving challenging. Whilst a prolonged period of low oil prices can be beneficial in achieving cost reductions for planned joint venture expenditure, there are also opposing influences as partners seek to significantly reduce near term expenditure plans to preserve capital.

Although originally budgeted for 2016, some slippage is anticipated in the appraisal drilling schedule. The Operator, NewAge, is preparing a revised plan and it is expected that drilling preparations will be progressed during 2016 to take advantage of the lower cost operating environment, with drilling expected in 2017. Well design and planning is underway with tendering, including rig, in preparation for drilling expected to follow.

Bomono, Onshore Cameroon (100% equity interest)

The Zingana well was the first of the two wells in the 2015 exploration programme, and was drilled to 1,720 metres measured depth (MD). The second well, Moambe, was drilled to 1,769 metres measured depth (MD).   The subsequent extended well testing programme carried out at Moambe and Zingana was completed in January 2016 with initial results indicating a potential supply of around 5 to 6 mmscfd of gas to a small in-situ gas to power development.

Linked to development planning and with a near-term focus on the shallower reservoirs, Bowleven is evaluating the acreage potential of both the shallower and deeper reservoirs. Consequently, the technical team are in the process of compiling a full inventory of existing contingent and prospective resources on Bomono post drilling and testing activities.

Also related to development planning, discussions are continuing with ENEO under the existing MOU regarding the possible sale of gas for local power generation.

As previously advised, operations were impacted by the non-performance of contractors during the preparation and operational phases of the drilling/testing programme and remedial action is being progressed.

The Bomono Exploitation Authorisation Application (BEAA) was submitted to the Cameroon authorities in December 2015 as planned, prior to the expiry of the exploration phase of the licence on 12 December 2015, to enable commencement of the development phase. The Company is liaising with the Cameroon authorities regarding the progression of the BEAA. As with Etinde, the authority to award the Exploitation Authorisation (EA) rests with the Minister of Mines.   Alongside, SNH has expressed support for an extension to the exploration licence pending BEAA progression.

Volumetric Update

P50 net contingent resources are unchanged at 58 mmboe.

Net contingent resources do not currently include any contingent resource volumes for the Bomono Permit where an extended well testing programme at Zingana and Moambe was recently completed.

Volumetric updates are anticipated for both Bomono following completion of ongoing evaluation work post testing and also on Etinde post planned appraisal drilling activity.

Block 11B, Onshore Kenya (35% effective interest)

Bowleven holds a 35% effective interest in Kenya block 11B with Adamantine as operator. FTG was completed on block 11B by the end of 2013, with the acquisition of 2D seismic expected to follow. Logistical issues, including security concerns, delayed the commencement of this programme and the operator was unable to acquire the data prior to the expiry of the first licence phase (May 2015).  A one-year extension was subsequently awarded by the Kenyan authorities to enable this acquisition and the Operator has initiated a re-tender process.

As disclosed at the year end, Bowleven (Kenya) Limited (owned by First Oil and Bowleven) was in dispute with the operator over continued title to the Bowleven (Kenya) interest.  A subsequent ruling by the Court confirmed Bowleven's position that there was no legal basis for the action taken by Adamantine.

The joint venture has already met the financial obligations for the first phase of the licence. The acquisition of seismic would complete the work programme requirement pre entry into the second phase of the licence, which also includes a drilling and financial work programme commitment. Against this backdrop and considering the Group's strategy, Bowleven is evaluating forward plans on the asset pending the expiry of the first phase in May 2016.

Zambia

In June 2013, Bowleven submitted an application for acreage as part of a Zambian licensing round and was subsequently awarded three exploration blocks out of a five block application. Following a strategic review of our operations in this country the Group has decided not to progress the application and have notified the Zambian authorities accordingly.

FINANCE

The Group has reported a loss of $132.0 million (H1 2015: loss $81.0 million) for the six months ended 31 December 2015, which includes $133.5 million impairment charge recognised following a review of the Group's intangible exploration assets, in the context of the challenging macro-environment of prolonged lower global oil prices faced by the industry (H1 2015: $76.0 million impairment).

Against this market backdrop, the Group has revisited its key commodity price and planning assumptions used in assessing and calculating any impairment charge on intangible exploration assets (further detail provided in the notes to financials). This has resulted in an impairment charge of $60.7 million on Etinde and $61.0 million on Bomono. Based on an initial assessment, an impairment charge of $11.8 million has been made for Kenya block 11B pending conclusion on forward plans. The majority of the expenditure on block 11B was funded via an arrangement with First Oil.

The results for the period include administrative expenses of $4.8 million (H1 2015: $5.7 million). Finance income comprises mainly of $6.0 million foreign exchange gains arising from the recognition of foreign exchange differences under IFRS on US dollar cash balances (H1 2015: gain $0.6 million). 

The Group's G&A charge has reduced to around $0.8 million from $1.0 million per month. Managing and reducing G&A costs continues to be a priority for the Group and further cost saving initiatives are being identified and implemented.

Capital expenditure cash flows during the period were $32.4 million (H1 2015: $16.3 million). This expenditure relates primarily to drilling and testing operations on the Bomono Permit. As previously highlighted, operations were impacted by contractor non-performance, both prior to and during the drilling programme. Consequently we are continuing to pursue service providers for the recovery of a proportion of additional expenditure incurred.

At 31 December 2015, Bowleven had $108.0 million of cash and no debt (H1 2015: $6.6 million and no debt). 

Following the completion of the two exploration well commitments on Bomono, the Group has no outstanding work programme obligations.

As at 29 March 2016, the Group had circa $100 million cash and no debt. Under the terms of the Etinde farm-out transaction that completed in March 2015, Bowleven will receive a further $15 million in cash the earlier of September 2016 or completion of appraisal drilling. The Group also has access to a $40 million (net) drilling and testing carry which is expected to cover its share of two appraisal wells on Etinde.  This deferred consideration ($55 million) is recognised as a current asset on the Group balance sheet at 31 December 2015. In addition, a further $25 million is receivable on achieving Etinde FID and is disclosed as a contingent asset pending further clarity around Etinde project sanction/FID.

With a significant cash balance, the deferred consideration structure from the Etinde farm-out, and no debt or outstanding work programme commitments, the Group is well placed to progress its strategic objectives of supporting its existing asset base, alongside the potential for new investment opportunities. The Group will continue to review all available financing options to achieve the optimum funding mix for its future exploration, appraisal and development activities.

BOARD CHANGES

As planned, following the Annual General Meeting (AGM) in December 2015 both Ronnie Hanna and Caroline Cook stepped down from the Board, each having served nine years on the Board as Chairman and Chairman of the Audit Committee respectively. 

In accordance with succession plans, Non-Executive Directors William Allan and John Martin were consecutively appointed as Chairman of the Board and Audit Committee respectively.

Following these changes the Bowleven Board comprises eight members, four Executive Directors and four Non-Executive Directors.

OUTLOOK

Having a strong balance sheet does not mean we have room for complacency.  The oil industry has always been dynamic and moves quickly to take advantage of opportunity as it arises and to adapt in times of uncertainty and volatility.  It remains unclear how long oil and gas prices will continue to be adversely impacted by oversupply and weak demand.  As the size of capital cut-backs worldwide continues to mount, opportunities are inevitably becoming available.  We are confident that Bowleven can realise one or more of these for the benefit of shareholders. In tandem we will continue to progress our key objective of converting resources to reserves at both Bomono and Etinde in Cameroon.

William Allan, Non-Executive Chairman               Kevin Hart, Chief Executive

30 March 2016

GROUP INCOME STATEMENT

FOR THE SIX MONTHS ENDED 31 DECEMBER 2015

GROUP STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 31 DECEMBER 2015

GROUP BALANCE SHEET

AS AT 31 DECEMBER 2015

GROUP CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 31 DECEMBER 2015

GROUP STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 31 DECEMBER 2015

*Includes both share capital and share premium

NOTES TO THE INTERIM STATEMENTS

FOR THE SIX MONTHS ENDED 31 DECEMBER 2015

1. Accounting Policies

Basis of Preparation

This Interim Report has been prepared on a basis consistent with the accounting policies applied to all the periods presented in these consolidated financial statements.

The disclosed figures are not statutory accounts in terms of section 435 of the Companies Act 2006. Statutory accounts for the year ended 30 June 2015, on which the auditors gave an unqualified opinion and no statements under section 498 (2) or (3), have been filed with the Registrar of Companies.

2. Going Concern

After making enquiries, the Directors are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis as the Directors are of the opinion that the Group has sufficient funds to meet their ongoing working capital and committed capital expenditure requirements. In making this assessment, the Directors considered the Group budgets, the cash flow forecasts and associated risks.

3. Intangible Exploration Assets/Impairment Loss

In consideration of the current macro-economic environment and prevailing market conditions in the oil and gas industry which has resulted in a prolonged period of lower global oil prices, an impairment review of the carrying value of intangible exploration assets in the financial statements has been carried out.

In carrying out the impairment assessment of each asset, the recoverable amount of the asset is determined using a discounted cash flow model and is compared to the net book value of the intangible exploration asset in the financial statements.

Given the market downturn, the Group's long-term oil price assumption has been reduced to $65 per bbl from $80 per bbl (as disclosed in the Annual Report as at 30 June 2015).  Similarly a gas price of $7/mmscf has been utilised for Bomono, gauged against local market pricing in the absence of a gas sales agreement for the asset at this juncture. The pre tax discount rate has been calculated based on the post tax rate of 10% (unchanged from prior reporting period). Each intangible asset detailed below is considered to be a single cash-generating unit.

As a result of this impairment review an impairment charge of $133.5 million has been recognised in the Income Statement (H1 2015: $76.0 million), the detail of which is provided below. 

Etinde

The recoverable amount of the Etinde cash-generating unit calculated on the above basis is $168.4 million. As a result of the impairment review a charge of $60.7 million is recognised in the Income Statement.

The discounted cash flow model used to assess the Etinde recoverable amount represents a conservative case, and only considers an initial development supplying gas to the planned fertiliser plant excluding any potential additional resources and offtake solutions that may result from planned appraisal drilling, in particular that of the Intra Isongo formation which will be targeted by the two planned appraisal wells. Bowleven's estimated share of the drilling and testing of these wells is covered by a $40 million net carry provided under the Etinde farm-out transaction that completed in March 2015.

Bomono

The recoverable amount of the Bomono asset calculated on the basis detailed above is $36.6 million resulting in an impairment charge of $61.0 million in the Income Statement. 

In December 2015 the Group submitted the Bomono Exploitation Authorisation Application (BEAA) to enable progression to the development phase post completion of drilling and testing activities (exploration licence expiry 12 December 2015). The Group is actively engaged with the Minister of Mines (who is responsible for granting EAs) providing clarifications requested pre award.  As part of the ongoing process SNH have also indicated support of an exploration licence extension pending EAA progression.

The discounted cashflow model utilised is based on the EA submission and assumes a small initial in-situ gas-to-power development. Meanwhile, development planning work is continuing, discussions are progressing regarding the possible sale of gas and the team are in the process of evaluating the potential of both the shallower and deeper reservoirs encountered following the completion of drilling and testing activities in January 2016. A full inventory of existing contingent and prospective resources is currently being compiled.

Kenya block 11B

Kenya block 11B is the sole asset held in Bowleven Kenya (owned by Bowleven 70% and First Oil 30%). Exploration costs of $11.8 million have been incurred to date ($8.8 million of which was funded by First Oil). With two months remaining in the current phase of the licence and pending conclusion of forward plans on the block, the recoverable amount of the asset has been reduced to zero and a charge $11.8 million recognised in the Income Statement.

4. Other Notes

a)  The basic earnings per ordinary share is calculated on a loss of $132,033,000 (H1 2014: loss of $81,015,000) on a weighted average of 324,491,784 (H1 2014: 324,302,272) ordinary shares.

b)  The loss attributable to ordinary shareholders and the number of ordinary shares for the purpose of calculating the diluted earnings per share are identical to those used for the basic earnings per share. The exercise of share options would have the effect of reducing the loss per share and consequently is not taken into account in the calculation for diluted loss per share.

c)  No dividend has been declared (2014: nil).

5. Electronic Shareholder Communication 

As per the prior year Interim Results and recognising increased automation in shareholder communications, the Group no longer produces hard copy Interim Reports. The Annual Report will also be distributed electronically unless shareholders specifically elect to receive a hard copy. Copies can be obtained from the Company on request.

6. Interim Report

This announcement represents the Interim Report and half yearly results of Bowleven plc. The announcement will be available to download from the Company website www.bowleven.com.

GLOSSARY