Bowleven announced its interim results for the six months ended December 31, 2010.
- Sapele-1 exploration well targeting multiple stacked objectives delivered positive results:
- Significant prospectivity of the Douala Basin confirmed;
- Two potentially significant oil and gas condensate discoveries made in the Tertiary interval at Sapele-1;
- Presence of hydrocarbons in the Cretaceous, offshore Douala Basin confirmed.
- Drilling on the Sapele-1ST (sidetrack) and Sapele-2 appraisal wells progressing on schedule.
- P50 contingent resources for the Group increased by 31% to 213 mmboe (net) after incorporating initial Sapele-1 Tertiary results.
- Multi-well drilling program targeting both Tertiary and Cretaceous prospectivity is underway; forward program is expected to evolve as drilling activity progresses.
- Seismic coverage expanded over the Etinde and Bomono Permits in Cameroon; evaluation of further exploration upside is ongoing.
- IE-3 appraisal well, offshore Cameroon, tested cumulative maximum rate of around 23,000 boepd; appraisal activities on the IE and IF discoveries are progressing.
- Successfully raised $112 million via equity placing in November 2010.
- Group cash balance $189 million at December 31, 2010, no debt.
- Fully funded for current drilling program on Etinde; significant financing flexibility.
- Ongoing exploration and appraisal activity in Cameroon is likely to include:
- Completion of Sapele-1ST well and testing program to appraise the Deep Omicron oil discovery;
- Completion of the Sapele-2 appraisal well targeting Lower and Deep Omicron fairways;
- Further exploration/appraisal wells targeting Tertiary and Cretaceous prospectivity in the Douala Basin;
- Identification of potential leads and prospects from newly acquired MLHP-6 3D seismic prior to formulating the 2012 Etinde drilling program;
- Further appraisal activities on the block MLHP-7 discoveries; and
- Generation of leads and prospects from the new Bomono 2D seismic ahead of planned 2012 drilling program.
- Convert resources to reserves; progress IE and IF development projects towards sanction.
Kevin Hart, Chief Executive of Bowleven, said, "We are delighted with progress made towards our overarching objectives of exploring the significant potential of the Douala Basin and converting resources to reserves on Etinde. In an exciting and eventful period for Bowleven, the ground-breaking Sapele-1 well has highlighted the significant Tertiary and Cretaceous potential of the acreage, an important step towards realizing our vision for the Basin.
Operational activity in Cameroon will continue at pace. The near term focus is on appraising the extent of the Sapele-1 Tertiary oil and gas condensate discoveries. The Sapele-1ST and Sapele-2 wells are already underway and are progressing on schedule. In addition, the multi-well forward program also envisages block MLHP-7 appraisal drilling, further Tertiary drilling on block MLHP-5 and a return to the Cretaceous, a play that has the potential to transform the Douala Basin and Bowleven. It is an exciting time for the team and we look forward to pursuing the multiple opportunities our acreage has to offer."