Bowleven shares surge as it announces £50m special dividend

7th Jan 2019 10:59

(Sharecast News) - Africa-focused oil and gas company Bowleven has announced a £50m special dividend.The AIM-listed group said on Monday that its board has approved a special dividend of 15p per share following the completion of the two well drilling campaign last October.As at 30 November 2018, Bowleven held cash and financial instruments equivalent to $80m and the company said it expects to receive a further $25m at financial investment decision (FID) on the Etinde field.The level of the special dividend takes into account the group's Etinde expenditure programme for 2019, the board's commitment to return surplus funds to shareholders and the company's strong balance sheet.Bowleven said the upcoming Etinde work programme and budget has now been agreed amongst the upstream joint venture partners for 2019.Chief executive officer Eli Chahin said: "The company is pleased to be able to propose this special dividend, creating a significant liquidity event for our shareholders."With the 2019 budget agreed, the board is comfortable that the company's resulting cash position will allow it to reach FID, with our JV partners, creating a further significant value accretive event for shareholders and immediately allowing for the payment of $25m under the terms of the Etinde farm-out agreement."At 1035 GMT, the shares were up 19.2% to 31.90p.