SHARES in Bowleven shot up yesterday after it announced the Cameroon government has agreed support for its Etinde Permit.
The stocks, listed on the Aim market, rocketed 9.63 per cent to close at 37p.
The Africa-focused oil and gas group said a formal resolution has been passed, following a meeting with the government on May 21. A formal decree is expected to follow.
Bowleven said its authorisation application, which was submitted in early January, “defines the means of monetising the Etinde hydrocarbons by supplying treated gas to a government sponsored fertiliser plant and also through a liquefied natural gas (LNG) scheme.”
Consent would give development and exploitation rights for block MLHP-7 for at least 20 years.
Kevin Hart, chief executive of Bowleven, said: “We are delighted to have achieved this key milestone in the plans to develop Etinde.
“This will enable the progression of the exciting development opportunities on Etinde as we support Cameroon in its ambition to further develop its considerable hydrocarbon resources.”
Westhouse Securities maintained its “buy” rating, saying the step “will trigger a significant de-risking”.