Sapele-2, Block MLHP-5, Etinde Permit, Cameroon

RNS Number : 3418G

BowLeven Plc

11 May 2011

 



11 May 2011

Bowleven plc ('Bowleven' or 'the Company')

Sapele-2 well, Block MLHP-5, Etinde Permit, Cameroon

Bowleven, the West Africa focused oil and gas exploration group traded on AIM is pleased to announce that the Sapele-2 well drilling in the Douala Basin, offshore Cameroon has encountered a total of approximately 35 metres of independently log evaluated net hydrocarbon-bearing pay in the Omicron objectives based on the results of drilling and conventional wireline logs.  A testing programme is expected to commence, subject to attaining various approvals, on completion of the logging programme.

Highlights

·    Approximately 35 metres of independently log evaluated net hydrocarbon pay encountered in the Omicron objectives at Sapele-2.

·    Preparing for testing programme at Sapele-2.

·    Sapele-1ST testing programme underway.

Sapele-2 drilling update                  

The principal objective of the Sapele-2 well was to appraise the Omicron discoveries encountered in the Sapele-1 exploration well.  The well was drilled to a total depth (TD) of 3,749 metres as planned in water depths of 25 metres, penetrating both the Lower and Deep Omicron reservoir objectives at a location around five kilometres South West of the Sapele-1 location.   

Bowleven, as operator, provides updates for the reservoir intervals encountered at Sapele-2 below:

Lower Omicron 

Based on conventional wireline logs, provisional net pay is independently estimated to be approximately 19 metres, with an average porosity of 17%. 

Deep Omicron

Based on conventional wireline logs, provisional net pay is independently estimated to be approximately 16 metres,  based on conventional wireline logs, with an average porosity of 17%.

In both intervals the GC tracer indicates the probable presence of oil however due to borehole conditions it was not feasible to recover reservoir fluid samples at this stage.  It is intended that both hydrocarbon type and formation pressure will be confirmed during the future test programme.

Forward plan

Further detailed analysis, including test data, is now required to assess the implications of  both the Sapele-2 and Sapele-1ST wells on current resource estimates. A testing programme is currently underway on Sapele-1ST and the results are expected in the next two to three weeks.   An update on Sapele-2 testing is expected in the next three to four weeks.

Due to the stratigraphic nature of the Omicron fields further drilling will likely be required to determine with greater confidence the potential size of these existing discoveries.

A map indicating the location of the Sapele-2 well is available on our website www.bowleven.com under the heading Presentations; the presentation is titled "Sapele drilling locations". 

Kevin Hart (Chief Executive Officer) and Ed Willett (Exploration Director) will be hosting a conference call for analysts and investors today at 08.30 BST.  To access the call please dial the appropriate number below 10 minutes before the call.

Dial-in:             [phone] UK

                        [phone] UK / International

Code:               4137621 (participants should quote this code when dialling in).

A replay facility will be available from approximately 3 hours post the call until Wednesday 18 May 2011.  To access this facility dial:

Dial-in:             [phone] UK

[phone] US

Code:               4137621#

Kevin Hart, Chief Executive of Bowleven plc, commented:

"We are delighted with the results so far on Sapele-2 with the initial log evaluation indicating potentially the highest level of net oil pay encountered on any of the wells drilled to date on block MLHP-5.  

Preparations are in progress for a testing programme at Sapele-2 and testing is already underway at Sapele-1ST.  We look forward to receiving these test results which will be integral in refining the potential range of volumes for both Lower and Deep Omicron.

The Sapele-2 well location was selected as a substantial step-out from the original Sapele-1 motherbore and consequently highlights the potential for significant volumes to be contained in the surrounding area. It is an exciting time for the Company and the results to date are extremely promising in the context of both Sapele and the Douala Basin as a whole."

ENQUIRIES

For further information please contact:

Bowleven plc

Kevin Hart, Chief Executive                                          00 44 131 524 5678

Kerry Crawford, Head of Investor Relations                 00 44 131 524 5678

Brunswick Group LLP

Patrick Handley                                                            00 44 207 404 5959

Natalia Erikssen

RBS Hoare Govett                                                      

Stephen Bowler                                                            00 44 207 678 8000

Jamie Buckland                                                            00 44 207 678 8000

Notes to Editors:

Bowleven is a West Africa focused oil and gas exploration group, based in Edinburgh and traded on AIM since 2004. Bowleven's strategy is focused on creating and realising material value through exploration led organic growth.

Bowleven holds equity interests in 7 blocks in Cameroon and Gabon, with 4 blocks located offshore in shallow water, and 3 onshore, with 6 of these blocks operated by Bowleven. The Etinde Permit (Bowleven 75%; Vitol 25%) comprises approximately 2,316 km² of exploration acreage located across the Rio del Rey and Douala Basins. There is an extensive multi-well exploration and appraisal drilling programme ongoing on the Etinde Permit during 2011.

Bowleven's overall P50 contingent resource base is 213 mmboe (net).

GLOSSARY OF TERMS:

The following are the main terms and abbreviations used in this announcement:

AIM	Alternative Investment Market
Bowleven	Bowleven plc and/or its subsidiaries as appropriate
Etinde Permit	the production sharing contract between the Republic of Cameroon and EurOil Limited (an indirectly wholly owned subsidiary of the Company) dated 22 December 2008 in respect of the area of approximately 2,316 km², comprising former blocks MLHP-5, MLHP-6 and MLHP-7, offshore Cameroon; or, as the context may require, the contract area to which this production sharing contract relates
GC	Gas Chromatograph
mmboe	million barrels of oil equivalent
P50	50% probability that volumes will be equal to or greater than stated volumes

 

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