Shares in BowLeven PLC fell Thursday after the company said there is material uncertainty about its ability to continue as a going concern, and that it expects to raise additional capital in 2023 to help finance its continuing corporate activities.
Shares at 0716 GMT were down 0.30 pence, or 24%, at 0.95 pence.
The London-listed Africa-focused energy company said its forecasts indicate a material risk that it will use up its existing cash resources by the end of 2023. It added that planning for an equity fundraising was at an early stage and that there couldn’t be any certainty regarding its conclusion, structure or terms.
The company said that as at Feb. 28 it had liquid resources–consisting of cash and a financial investment–of around $2.3 million.
BowLeven said 2023 expenditure at the Etinde oil-and-gas joint venture project–where it has a 25% equity interest–offshore Cameroon is expected to rise.
The company said for the six months ended Dec. 31 its pretax loss narrowed to $1.0 million from $1.2 million for the first half of fiscal 2022. The company said it had reduced project development activities at Etinde and that further expenditure-reduction measures had been imposed by the board.
BowLeven didn’t report any revenue for the period.