Suntera to Take Stake in BowLeven

BowLeven, the Scottish oil and gas company focused on Cameroon, has entered into an agreement with Suntera Resources Limited whereby Suntera will make an investment of approximately £10.9 million (US$20.1 million) in BowLeven through the issue of new ordinary shares. Suntera has also offered to provide its knowledge and expertise to BowLeven and to assist in identifying possible joint exploration and production opportunities in the company’s principal sphere of operation.

BowLeven has agreed to issue 4,438,000 new ordinary shares of 10p each to Suntera at a price of 245.36 pence per ordinary share with such allotment conditional upon those shares being admitted for trading on AIM. This price is at a premium of 8.6 percent to the BowLeven closing mid-price on June 30, 2006.

The investment represents 13 percent of BowLeven’s entire issued share capital following the investment. The full consideration of £10,889,076.80 million is to be satisfied in cash. Application will be made for the new shares to be admitted for trading on AIM, and it is expected that admission will take place on July 12.

Suntera is a joint venture owned 50 percent by SUN Energy Limited and 50 percent. by ITERA Oil & Gas LLC. Suntera was formed to focus on non-OECD energy opportunities. Steve Lowden, the CEO of Suntera, is also a non-executive director at BowLeven.

“We are delighted to announce this investment and new alliance,” said Terry Heneaghan, BowLeven’s executive chairman. “Suntera is prepared to bring additional expertise, knowledge and funding through the subscription to the company which will assist with the delivery of our longer-term strategic objectives. The investment is also at a premium to our share price over the last few weeks.”

“I certainly welcome Suntera as a new shareholder in the Company, and look forward to capturing the benefits of this strategic link-up,” added BowLeven CEO-designate Kevin Hart. “Suntera’s expertise and assistance will be of benefit in providing new opportunities in the region.”

“Suntera is excited by the opportunity that this investment creates,” noted Steve Lowden, Suntera’s CEO. “We believe this investment, combined with our strengths in the gas business and our relationships and knowledge in West Africa, will help take BowLeven to the next level, and we feel that this deal represents good value both to the BowLeven shareholders and to Suntera.”

SUN Energy Ltd is a private energy investment vehicle (non-operator) of SUN Group, an investment group active in Russia, India, Europe, and the U.S. The group has experience in emerging markets and in financing and acquisitions and has significant energy interests in Russia in oil, gas, refineries, and power. In addition to his other responsibilities, Steve Lowden is CEO and a director of SUN Energy Ltd.

ITERA Oil & Gas LLC is part of the ITERA International Group of Companies. The group was established in 1992, with a head office in Moscow, and comprises more than 150 companies and is active in 24 countries. It is involved in gas production, gas supply, and petrochemicals and has current production capacity of 1,500 mmscfd and resources of 3.3 billion boe.

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