Newswires Proactiveinvestors Newswires RSS feed en Thu, 26 Nov 2015 01:05:27 +0000 Genera CMS (Proactiveinvestors) (Proactiveinvestors) Bowleven moves to extended testing at Moambe well Bowleven (LON:BLVN) shares edged higher on Wednesday after it updated on its ongoing well testing programme for the Bomono project, onshore Cameroon.

The Moambe well, on the Bomono permit, has to date flowed at a maximum stabilised rate of 7.3mln cubic feet of gas per day (mmscfd), through a 48/64 choke with a flowing well head pressure of 664 psig.

There have been no signs of depletion during this initial test period, the company added.

Bowleven told investors that, due to the success to date, the programme has now moved into the planned extended well test period. This phase aims to confirm the field’s sustainable deliverability for a gas-to-power development.

Based on initial indications the company believes the well would be capable of delivering around 4 to 5 mmscfd.

The company added that it continues to work on plans for extended well testing of the Zingana well.

Kevin Hart, Cameroon chief executive, said: "We are pleased with the positive initial flow test results on Moambe which give us increased confidence in the commercial viability of future development plans at Bomono.

“We look forward to the Zingana test augmenting the results at Moambe and to progressing gas sales negotiations."

In London, Bowleven shares were up just over 1% changing hands at 24.25p each.

Wed, 25 Nov 2015 10:41:00 +0000
Bowleven sitting on US$145mln in cash Prelims from Bowleven (LON:BLVN) reveal it is in a healthy position for a junior oiler as it is sitting on US$145mln of cash.

The source of the company’s riches is a US$250mln deal struck with Russia’s LUKOIL and privately-owned NewAge, which now each own 30% of the Etinde Permit, offshore Cameroon.

Bowleven, which has been left with 20% (the remainder is owned by the state oil firm), is now carried on a two well programme next year.

That carry is estimated to worth US$40mln, while Bowleven will receive a further U$15mln on completion of appraisal drilling and US$25mln once the final investment decision is made on the project.

Etinde lies in shallow waters off the coast of Cameroon and is host to a number of discoveries including oil, condensate and gas.

The P50 contingent resources is 58mln barrels of oil equivalent.

However, there is huge potential upside and the appraisal work being carried out in 2016 is targeting an additional one to two trillion cubic feet of gas (tcf) in place at the P90 level.

It will depend on how much gas the partners find as to how the asset will be developed.

There is the opportunity to develop a liquefied natural (LNG) gas facility, a fertiliser plant or power project.

Bowleven is not a one asset company. It also owns Bomono, an onshore gas discovery right next to Douala, Cameroon’s second city and industrial hub.

An extended well test will determine the potential for commercialising this asset, but it is already talking to private equity fund Actis, owner of the local electricity company, about collaborating on a gas-to-power deal.

Bowleven in its results statement said one of its key objectives for the coming year is to manage its cash resources carefully, although the company is on record as saying it will consider value accretive, Africa focused acquisition opportunities.

“The sustained low oil price has created a challenging environment for E&P companies and we have taken the time to examine our current cost base to ensure that it is right-sized for current plan, and our strategic objectives,” said chief executive Kevin Hart.

“However, for those with balance sheet strength there are opportunities.

“We will evaluate this new business potential against a background of capital discipline and operational capability while continuing to drive forward progress on our existing assets."

In common with companies involved in exploration, Bowleven was loss-making in the 12 months to June 30. The deficit was US$90mln, compared with US$13.6mln a year earlier, although the former number included an impairment charge of US$76mln.

Analyst Craig Howie, at Shore Capital, said: "We look forward to completion of well testing at Bomono and the commencement of appraisal drilling at Etinde; in the meantime, we highlight Bowleven's $145mln net cash balance at the period end, which provides significant valuation support in our opinion."

Meanwhile, Mirabaud noted that operationally there was not "a great deal" to report in the statement..

Testing continues at the Moambe gas discovery at the Bomono permit in Cameroon with the rig expected to move to the Zingana discovery on completion, the broker said.

"In preparation for commercial flow rates, Bowleven has signed an MOU with Actis/Eneo, which will spell out the terms for a gas sales agreement. Meanwhile, appraisal drilling at Etinde is expected to commence next year (in line with previous guidance) with BLVN carried for the cost of the two wells up to a net cap of US$40m."

Bowleven shares eased 5.83% on the day to 24.25p.

Tue, 10 Nov 2015 08:38:00 +0000
Bowleven ready to take advantage of oil sector distress Kevin Hart is confident the oil price will drift back to its pre-slump norm; the issue is one of timing, says the boss of oil and gas explorer Bowleven (LON:BLVN).

The assertion is made with the confidence of a man who has been through four cycles where the doom and gloom-mongers have predicted Armageddon.

In each case the market has rebounded and the industry has dusted itself down and got on with job of finding and producing crude, Hart, a former Cairn Energy executive, points out. 

For companies with enough cash to see them through the tough times the current downturn throws up opportunities along with the challenges.

Bowleven, which banked US$165mln from a farm-out deal in March, is one of those companies lucky enough to be cashed up as the sector headed into the downturn.

“We have distressed sellers out there having to drill wells where they have commitments,” Hart points out.

“We can therefore jump into the race without having to run the first 23 miles of the marathon.”

The source of the company’s riches is a US$250mln deal struck with Russia’s LUKOIL and privately-owned NewAge, who now each own 30% of the Etinde Permit offshore Cameroon. 

Bowleven, which has been left with 20% (the remainder is owned by the state oil firm), is now carried on a two well programme next year.

Etinde lies in shallow waters off the coast of Cameroon and is host to a number of discoveries including oil, condensate and gas. 

The P50 contingent resources is 58mln barrels of oil equivalent. 

However, there is huge potential upside and the appraisal work being carried out in 2016 is targeting an additional one to two trillion cubic feet of gas (tcf) in place at the P90 level. 

It will depend on how much gas the partners find as to how the asset will be developed.

There is the opportunity to develop a liquefied natural (LNG) gas facility, a fertiliser plant or power project.

Local intelligence suggests the Cameroon government is keen on the fertiliser or power option, while commercially it might make more sense to concentrate on LNG.

The ideal would be to have resource and reserves large enough to do two of the three projects. Hart reckons the partners will need to find 1tcf to make the twin track approach viable.

Bowleven is not a one asset company. It also owns Bomono, an onshore gas discovery right next to Douala, Cameroon’s second city and industrial hub.

An extended well test will determine the potential for commercialising this asset, but it is already talking to private equity fund Actis, owner of the local electricity company, about collaborating on a gas-to-power deal.

Those who follow the sector closely will know the pathfinder company in Cameroon gas-to-power is London-listed Victoria Oil & Gas, which has created its own network in Douala.

Hart said he has been in contact with Kevin Foo, the VOG boss, for advice and market intelligence.

And he isn’t ruling out some sort of collaboration when Bowleven is able to establish the potential of Bomono, which covers an area of 2,328 square-kilometres.

With money in its pocket, might the company look to fast-track other assets in its portfolio, such as Kenya and Zambia?

Probably not, judging by the benchmarks it has set for its assets – amended to take into account the current depressed state of the industry.

So, Bowleven will only fund opportunities that can be on-stream in 24-36 months, which are onshore, or shallow offshore and are close to infrastructure.

Kenya and Zambia fail to meet those standards, so will progress at the pace mapped out previously by executives.

However, there are projects out there that do clear Bowleven’s high hurdles – so many in fact the company has had to filter them.

In making acquisitions, Bowleven will maintain its focus on Africa, and will eschew production opportunities in favour of exploration acreage where it knows it can add value, Hart reveals.

Even without deals, the company is in a unique position in being cashed up and carried on a two-well programme.  

As Etinde reaches the crucial and expensive development phase, it may have to stand back and look rationally at its continued participation. 

Does the company spend an estimated US$140mln funding the upstream infrastructure, or does it sell the asset on to some other company higher up the food chain?

The analysts will tell you it is likely to be the latter option is most likely, which would mean a further significant windfall at some point in the future.

So, with so much potential value catalysts it will probably come as a shock to learn that shares in Bowleven are trading at a discount to cash. Not a discount to net asset value, but cash. Cold, hard cash.

Hart is at a loss to explain the disconnect, although there are some barmy valuations at the junior end of the market at the moment.

“I think we are clever enough to realise there is a viable model here. The difficulty is knowing when things are likely to turn,” says a philosophical Hart. 

“All you can do in the meantime is make sure you don’t over-expose yourself and don’t put yourself in the position where you need risk capital. In other words you work within your means.”

Fri, 16 Oct 2015 09:48:00 +0100
Bowleven extends deadline for Etinde transaction Bowleven (LON:BLVN) has said its Etinde farm-out is at the final stage of completion and it has been agreed that the deadline will now be extended to February 28.

The transaction with LukOil and NewAge has already received official government approval in Cameroon, and it is now awaiting presidential signature; this sign off is expected imminently, Bowleven said.

Although formal gazetting of the decree remains achievable before end of the month, the extension allows additional time should it be required.

Bowleven added that talks are ongoing with the Cameroon government with a view to re-securing exploration acreage in the Etinde area (which is separate to the anticipated Etinde production area).

The Etinde Exploitation Authorisation (EEA), spanning 461 square kilometres, was awarded in July 2014 and it provides exploitation and development rights for an initial period of 20 years.

Tue, 23 Dec 2014 08:02:00 +0000
Bowleven to close Cameroon farm-out in October Bowleven (LON:BLVN) told investors that the farm-out deal with LUKOIL and New Age has been set back by two months.

The ‘long-stop’ date for closing the transaction has been moved to October 31 to enable the satisfaction of the few remaining conditions.

A US$250mln deal was agreed in June and it sees Bowleven divest 50% of the Etinde project, in Cameroon.

Bowleven will be due US$170mln of cash as well as US$40mln of further cash deferred until Etinde reaches a final investment decision, while a further US$40mln has been committed for two appraisal wells.

LUKOIL will acquire 37.5% of the project, while existing Etinde partner New Age will acquire an additional 12.5% (giving it 37.5%). A subsidiary of New Age will take over as operator.

For Bowleven the cash boost from the sale gives it greater flexibility to fund its share of the project.

Today, the company said that the majority of conditions to transaction completion are now satisfied.

The outstanding condition is governmental approval in Cameroon, though Bowleven says this is being processed.

"We have made significant progress towards completion of the Etinde farm-out transaction,” said Bowleven chief executive Kevin Hart.

“We look forward to the support of the Cameroon authorities in concluding the transaction approval process and in so doing facilitating the progression of Etinde development plans and enhancing the monetisation of the Etinde acreage."

In early deals Bowleven shares were down 1.25p (3.5%) at 33.75p.

Tue, 26 Aug 2014 09:49:00 +0100
Bowleven shares advance on US$250mln Etinde stake sale Bowleven (LON:BLVN) shares jumped in early deals with the news it is to sell 50% of the Etinde project in a deal worth US$250mln.

Through the deal with Russia’s LUKOIL and New Age, Bowleven will receive and initial US$170mln of cash, as well as US$40mln deferred until the project reaches final investment decision and a US$40mln ‘carry’ on two appraisal wells.

LUKOIL will acquire 37.5% of the project, while New Age will acquire an additional 12.5% giving it a total stake of 37.5%. A subsidiary of New Age will take over as operator.

Bowleven says the cash boost from the sale gives it greater flexibility to fund its share of the project.

"We are extremely proud of the substantial progress that we have made with Etinde in discovering resource and creating markets,” said chief executive Kevin Hart.

“I am delighted that LUKOIL are joining us as a value-adding partner in Cameroon, alongside our existing co-venturer, NewAge.

LUKOIL are a major international integrated oil and gas group with extensive operating and marketing expertise globally and a track record of delivering world class oil and gas developments. The expanded joint venture will work together to realise the considerable potential of this world class asset.”

In London, Bowleven shares moved 5p or 12.58% higher to trade at 44.75p each.

Tue, 24 Jun 2014 09:41:00 +0100
Bowleven unveils latest steps at Etinde permit FTSE 250 oil and gas explorer Bowleven (LON:BLVN) updated on its three blocks offshore Cameroon - saying the Etinde exploitation authorisation application (EEAA) has been formally submitted to the authorities.

The application, submitted on January 6 this year, details the means by which the Etinde hydrocarbons will be monetised by supplying treated gas to a government sponsored fertiliser plant and also through a liquefied natural gas (LNG) scheme.

In all, the firm holds equity interests in five blocks in Cameroon, with three blocks in shallow water and two onshore.

All are operated by Bowleven.

Thu, 06 Feb 2014 07:45:00 +0000
Bowleven lands US$9mln investment for East Africa venture Oil junior Bowleven (LON:BLVN) has landed a US$9mln investment into its new East Africa focused subsidiary.

With this initial investment, First Oil, a privately owned British company, is taking a 30% stake in the East Africa venture.

First Oil may invest a further US$12.5mln in a second, contingent, work programme.

It has also agreed to work with Bowleven to investigate early entry opportunities in the East African Rift System, and it could contribute US$3.6mln to the AIM quoted firm's share of any subsequent investment.

"We are delighted to welcome First Oil as a strategic partner in our early stage exploration activities in East Africa and we look forward to working with the team going forward in this exciting emerging area," said chief executive Kevin Hart said in a statement.

First Oil's Steve Bowyer added: "We are pleased to announce our entry into the developing East African Rift System and look forward to working in partnership with Bowleven."

Thu, 04 Jul 2013 09:41:00 +0100
Bowleven still on target for first gas in Cameroon  

Bowleven (LON:BLVN) has confirmed it is still on target for first gas production from its Etinde Permit in the shallow waters off the coast of Cameroon following the completion of work on its latest well.

IM-5 successfully tested the Middle Isongo and Intra Isongo reservoirs, but has now been suspended pending the roll out of production.

Stage-one of the Etinde development is to supply 70 million cubic feet of gas a day and a formal signing ceremony, rubber stamping a deal first inked in March, was completed on Wednesday.

Bowleven and its partners will now focus on agreeing gas sales prior to making a final investment decision by the end of the year.

Separately, the Etinde exploitation authorisation application is expected to be formally submitted to the Cameroon authorities next month.

Chief executive Kevin Hart said: "We are focused on the planned phased development of Etinde and the delivery of first production from the permit, anticipated in 2016.”


Thu, 23 May 2013 08:26:00 +0100
BowLeven's price target lifted by Deutsche Bank Deutsche Bank (DB) has bumped up its price target for oil and gas explorer Bowleven (LON:BLVN) but not enough to justify a change in its neutral stance.

The challenge in the Bowleven investment case, according to DB, is balancing the pros with the cons.

On the positive side is the DB-calculated 186p per share net present value (using a 10% discount rate) resulting from a 20-year gas supply into the proposed fertiliser plant; on the downside, there are near-term cash constraints, and there is concentration risk.

“We would like to see more progress towards FID [final investment decision], particularly on fertiliser plant funding, before we become more constructive with our recommendation,” said Phil Corbett, an investment analyst at DB.

The key question for Corbett is how much of a discount to that 186p net present value (NPV10) to apply to the current share price. After giving the abacus a bit of a bashing, Corbett comes up with a new target price of 100p, up from 80p.

“We have moved to a formula which takes the midpoint between free cash and the unrisked NPV10 of Etinde stage 1 and adding in the Bomono upside,” Corbett explains, for those stats fan keen to understand the investment analyst’s methodology.

“In reality, any point estimate of value at this point is highly arbitrary and subject to significant revision - we would focus more on our retained Hold recommendation. Key risks: progress on Etinde Stage 1 development, Bomono farm-out,” Corbett concludes.

Tue, 07 May 2013 11:40:00 +0100
Bowleven confirms commercial production rates in IM-5 well  

Bowleven (LON:BLVN) has announced its latest flow testing results from the IM-5 well which has bettered the group’s expectations.

The company said the testing confirmed commercial production rates and the significant liquids content of gas discovery.

The latest update revealed the findings from the Intra Isongo interval, the second of the two main reservoirs in the well, which achieved an average flow rate of 37mln cubic feet of gas and 4,664 barrels of gas condensate per day.

Combined with the previously tested Middle Isongo, the well has now demonstrated a maximum flow rate of 60mln cubic feet of gas and 7,819 barrels of condensate per day.

"We are delighted with the overall results from the IM-5 well which have surpassed our expectations,” said chief executive Kevin Hart.

“The flow rates that have been achieved on test demonstrate substantial well deliverability from both the Middle and Intra Isongo intervals and further strengthen the foundation for the planned phased development of Etinde.

“Due to the high deliverability of the Intra and Middle Isongo reservoirs we are confident we will be able to reduce the number of wells required to supply the planned fertiliser plant.”


Fri, 19 Apr 2013 08:28:00 +0100
Bowleven confirms significant condensates in IM-5 well test  

Bowleven (LON:BLVN) has revealed ‘pleasing’ test results from the IM-5 well on the Entinde permit offshore Cameroon.

Testing of the Middle Isongo interval has confirmed significant liquid gas condensate content.

At its peak, the drill stem test flowed at a rate of 23mln cubic feet of gas and 3,155 barrels of condensate, which together equates to 7,000 barrels of oil equivalent per day.

Testing will now continue to assess the Intra Isongo interval.

"The results from the IM-5 well continue to please,” said chief executive Kevin Hart.

“We are encouraged to see the first DST result at IM-5 confirm the deliverability of liquid-rich hydrocarbons from the Middle Isongo reservoir interval at commercial rates in excess of our pre-drill estimates.

“This result bodes well for the planned phased development of Etinde. We now look forward to test results from the Intra Isongo."


Tue, 02 Apr 2013 08:20:00 +0100
Bowleven spikes 10% after well results exceed expectations  

Shares in the explorer Bowleven (LON:BLVN) opened 10% higher this morning after better-than-expected results from its IM-5 well, on the Etinde Permit, in Cameroon.

An assessment of the reservoir intervals suggests there is 1.2 trillion cubic gas in place, a rise of around 162% on initial estimates.

They are also thought to contain 184mln barrels of condensate, representing an 868% increase on earlier figures.

Chief executive Kevin Hart said: "We are very pleased with the results of the IM-5 well to date which have significantly exceeded our pre-drill expectations.

“The substantial increase in gas volumes and more importantly liquid hydrocarbons place Bowleven in an excellent position to progress with the development of Etinde.  We look forward to the results of testing."

At 8.40am, the stock was changing hands for 87.5 pence, representing a rise of 9.72%.


Wed, 06 Mar 2013 08:40:00 +0000
Bowleven reveals appraisal success offshore Cameroon  

Bowleven (LON:BLVN) this morning announced an appraisal success in the IM-5 well offshore Cameroon.

The well hit ‘liquids-rich hydrocarbon-bearing pay’ in the primary objective, the Middle Isongo reservoir, as well as a secondary target called the Intra Isongo reservoir.

The result has confirmed that there are sufficient gas volumes to satisfy the proposed commercialisation option, to feed a proposed fertiliser plant which is being developed by Ferrostaal. The plant estimated to require 70mln cubic feet per day for at least 10 years.

“With the validation of sufficient gas volumes to meet the requirements of the proposed fertiliser plant, our efforts continue on finalising the gas sales heads of terms with Ferrostaal and obtaining the Exploitation Authorisation from the government,” said chief executive Kevin Hart.

The IM-5 well encountered in the Middle Isongo around 25 metres of net hydrocarbon bearing pay, over a 33 metre gross interval.

Bowleven’s analysis puts the hydrocarbon-water contact at 3,360 metres, which effectively extends and deepens the interpreted hydrocarbon column by over 90 metres. The total column height intersected in the two wells drilled to date is 145 metres.

Additionally, 70 metres of net hydrocarbon pay, in a 80 metre gross interval, was encountered in the Intra Isongo.

The well is now being prepared for testing.


Fri, 22 Feb 2013 08:14:00 +0000
Bowleven takes step closer to Etinde development  

Bowleven (LON:BLVN) this morning revealed it had taken another step nearer the development of the Etinde project in Cameroon.

It has now submitted a formal application for the development – the Etinde Exploitation Authorisation Application (EEAA).

“The submission represents a further step towards the delivery of the key requirements that will enable the final investment decision for the Etinde development, anticipated in the second half of 2013,” the company said in a statement.

Bowleven said the first stage of the development, if it goes ahead, will focus on the discoveries in the MLHP-7 block with first production targeted for 2016.


Mon, 26 Nov 2012 10:22:00 +0000
Bowleven's development outlook still unclear, says UBS, which cuts price target

Financing issues are the main concern for West Africa focused energy firm Bowleven (LON:BLVN), says broker UBS, which has cut its price target to 70 pence (from 105p).

It has an unchanged "neutral" rating, and says it remains "cautious" about the company's ability to successfully monetise its oil and gas assets in Cameroon.

"Drilling catalysts are likely to be relatively low impact, but will occur in 2H," said analyst Melanie Savage in a note.

"While details of development plans such as submitting an exploitation agreement may come out towards the end of the year, the availability of financing will dominate (a gas sales agreement can’t be signed without financing and vice versa".

The analyst reckons that the firm requires development capital expenditure of around 1.5 times its current market cap.

"We do not expect to have clarity on this until next year according to the company's timetable."

Earlier this year, there was the possibility of an approach for the company from Dragon Oil, but in February, Dragon decided it was not going to go forward with a bid.

Following this, the shares have lost ground in the past few months.

Savage said: "We are reducing our price target as we no longer give credit for bid speculation in the share price and we are including an updated resource estimate on one prospect which reduces our NAV by 18 per cent to 93p. 

"We set our price target at a circa 30 per cent discount to NAV, as we had done prior to the Dragon approach."

As at 11.44am, the shares were up 0.77 per cent, at 66.5 pence.

Thu, 24 May 2012 11:48:00 +0100
BowLeven sells Gabon offshore permit for US$38.6 mln Shares in Bowleven (LON:BLVN) rose today after the Africa-focused oil explorer announced it completed the sale of the EOV Permit offshore  Gabon.

It sold the wholly-owned permit for a total US$38.6 million in cash to Perenco SA, and has now increaed its cash balance to approximately US$160 million.

Chief executive Kevin Hart said: "The disposal of our interest in the EOV Permit enables Bowleven to concentrate its resources on core areas of the business where we believe we can create maximum value for shareholders.  

“The cash generated from this sale provides Bowleven with further financial flexibility to pursue the multiple opportunities identified on our Cameroon acreage."

 At 12.37, the stock was trading up 5 per cent at 100.88 pence.

Fri, 30 Mar 2012 12:41:00 +0100
Bowleven price target slashed by Investec
Broker Investec has slashed its price target for Africa-focused oil explorer Bowleven (LON:BLVN), saying the company has yet to produce a clear plan to monetise its resource potential.

Investec has cut its target from 195p to 94p and downgraded its stance to hold after a more than 30% rise in the share price over the past month.

Bowleven is focused on Cameroon and Gabon, where it owns six blocks all of which it operates itself. Its overall P50 contingent resource base is 226 million (net).

Investec added that the competent person’s report implies a value of 117p/share and its own de-risked valuation is over 400p/share, but the broker needs to see how and if the current funding situation will allow the company to drill before giving credit.

The company raised funds last year and that has bought it some breathing space, but it is unclear whether the company will be able to commercialise its reserves without outside help, the broker said.

A takeover or an earlier than expected farm-down of MLHP-5, on the Etinde Permit, Cameroon are the main risks to its valuation.

But Investec suggests Cove Energy (LON:COV) and Gulf Keystone (LON:GKP) are better takeover prospects.
While Bowleven is not a forced seller, neither can it conduct negotiations from a position of strength in the broker’s view.

Shares fell 7% to 80.5p. Bowleven's value has fallen by more than three-quarters over the past twelve months.
Tue, 24 Jan 2012 11:12:00 +0000
Bowleven reveals deeper oil discovery in Sapele-3 exploration well Bowleven (LON:BLVN) today revealed that it has found more oil reservoirs in the Sapele-3 exploration well, offshore Cameroon.

It said that Sapele-3 has now been drilled to target depth of 4,480 metres, after it drilled through the Epsilon Complex target.

"Sapele-3 has been a successful well, our fourth consecutive well in the Douala Basin to encounter significant hydrocarbon intervals at multiple levels,” said chief executive Kevin Hart.

A further 8 metres of net hydrocarbon pay was intersected in the deeper reservoirs. This adds to the 11 metres of net pay that was encountered within the Deep Omicron, as announced in October.

Bowleven said that indications from shows and mud log analysis suggest that the Epsilon reservoir package is oil-bearing. It also said it represents a significant extension of the Epsilon play fairway, and potential for better developed sands updip.

“The discoveries made in the Epsilon Complex and shallower Tertiary intervals, representing a total of 19 metres of net hydrocarbon bearing pay, have at each level extended considerably the previously defined play fairway boundaries,” Hart added.

“The extensive data acquired during drilling operations will contribute significantly to the derisking of appraisal locations and inform future development and exploitation planning. 

“The next key step is to evaluate this well data and plan an optimal test programme for the Deep Omicron and Epsilon intervals.”

The well is now being suspended for future re-entry, testing and potential use as a development well. 

The company said that downhole temperatures exceed the rating of the available surface equipment. Therefore it will defer testing until an optimal, longer duration test programme can be run.

Additionally Bowleven also told investors that it has secured a rig for the 2012 drill programme.


Thu, 24 Nov 2011 08:08:00 +0000
BowLeven to deepen Sapele-3 exploration well offshore Cameroon BowLeven PLC (LON:BLVN) plans to deepen the Sapele-3 exploration well drilling in the Douala Basin, offshore Cameroon.

In mid-October, the company announced that the well in the Etinde permit had encountered oil and gas condensate in the Deep Omicron and D-1r equivalent intervals respectively and that drilling within the Deep Omicron interval was to continue.

Since then, further sampling and data collection has taken place and the results are being evaluated. A liner has been run pending further drilling.

Given the optimised well design and progress made operationally with Sapele-3, the current intention, subject to final government approval, is to drill on through the Deep Omicron interval into the Epsilon Complex, BowLeven said.

The Epsilon Complex was previously drilled with the Sapele-1 exploration well where the presence of both gas condensate and oil were confirmed and represents a highly prospective interval that the company believes warrants further investigation.

Tue, 01 Nov 2011 07:28:00 +0000