Bowleven Spins Bit Offshore Cameroon

- Bowleven Spins Bit Offshore Cameroon

Thursday, August 11, 2011
BowLeven plc

Bowleven has commenced on the Sapele-3 well, Douala Basin, offshore Cameroon, with the Sapphire Driller jackup rig.

The Sapele-3 well, located around sixteen kilometres North West of the Sapele-1 location, is targeting the Tertiary interval and is to be drilled to an estimated target depth of circa 3,550 meters in water depths of around 30 meters.

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Bowleven Flows Oil at Sapele-2 Offshore Cameroon

- Bowleven Flows Oil at Sapele-2 Offshore Cameroon

Monday, August 01, 2011
BowLeven plc

Bowleven announced the following update on activities on block MLHP-5, Etinde Permit, offshore Cameroon.

Highlights

• Sapele-2 testing program completed despite compromised well bore conditions and operational issues, with oil and gas produced from the Deep and Lower Omicron intervals
• Peak flow rate of 2,738 boepd, including high quality light oil, produced by DST 2 in the Deep Omicron interval
• Drilling results, comparisons with Sapele-1 and seismic interpretation infer a laterally extensive Deep Omicron system, allowing updates to our views of system volumetrics
• P90 unrisked in place estimates for Sapele Deep Omicron discovery area and Mean for Deep Omicron fairway assessed by Bowleven as 87 mmboe and 477 mmboe respectively
• Flowed gas condensate from Lower Omicron interval; operational issues curtailed testing
• P90 unrisked in place estimates for Sapele Lower Omicron discovery area and Mean for Lower Omicron fairway assessed by Bowleven as 14 mmboe and 203 mmboe respectively
• Further appraisal drilling will be carried out as part of the appraisal plan

Kevin Hart, Chief Executive of Bowleven plc, commented, "We are delighted to have now flowed oil on test from the Deep Omicron interval at both Sapele-1ST and Sapele-2 and to have achieved the first hydrocarbon flow from the Lower Omicron interval. Comparisons with Sapele-1 and seismic interpretation indicate that we have a laterally extensive Deep Omicron system. The Sapele discoveries provide a foundation to Bowleven's strategy of moving resources to reserves on block MLHP-5 and the preparation of an appraisal plan for the area is already underway. With extensive remaining potential yet to be targeted, Bowleven's strategy will also comprehensively embrace the exploration opportunities on the acreage and we now look forward to drilling Sapele-3."

Sapele-2 test update

The principal objective of Sapele-2 was to appraise both the Lower and Deep Omicron discoveries encountered in the Sapele-1 exploration well.

As previously announced, the Sapele-2 well encountered log evaluated net pay of approximately 19 meters and 16 meters within the Deep Omicron and Lower Omicron intervals respectively. The well was drilled to a TD of 3,749 meters in water depths of around 25 meters approximately five kilometers south west of the original Sapele-1 vertical well.

The results of the three drill stem tests (DSTs) performed at Sapele-2 are outlined below:

Deep Omicron

DST1

The basal sand situated on top of the cross-cut event, encountered at Sapele-1 and Sapele-1ST but not tested, flowed light oil on test at Sapele-2, the first hydrocarbon flow from this interval. A peak flow rate of 381 boepd, comprising 233 bopd of light oil and 0.89 mmscfd of associated gas on a 12/64 inch choke was produced. While no MDT data was acquired to confirm connectivity, all three wells have log evaluated net pay at this level and based on seismic correlation, the interval can be mapped between all three wells and over a wide area.

DST2

A peak rate of 2,738 boepd, comprising 1,818 bopd of light oil and 5.52 mmscfd of associated gas on a 32/64 inch choke was produced. Reservoir pressure was seen to re-charge over the period of the DST, inferring a wider hydraulic system. Based on initial log evaluation, lower productivity was encountered on test than anticipated, potentially due to formation damage sustained during drilling activities.

Light oil ranging from 39 to 42 degree API was produced from the two DSTs performed in the Deep Omicron interval. The Sapele-1 well had a confirmed oil pressure gradient at Deep Omicron and oil samples were obtained during logging activities. The oil quality, gas-oil ratio and pressures measured on test at Sapele-2 are comparable to the samples and pressures taken at Sapele-1. DST pressures, the log correlation between wells and seismic interpretation infer a laterally extensive Deep Omicron system. Pressure communication between Sapele-1 and Sapele-2 at an individual reservoir level cannot be confirmed given the inability to acquire MDT data due to borehole conditions.

Lower Omicron

DST3

The interval flowed gas at rates of up to 3.1 mmscfd, the first hydrocarbon flow from this interval, however testing operations were curtailed due to a pressure leak in the test string. Consequently, although liquids were present their flow rate was not recorded.

Forward plan

With the testing programme now concluded at Sapele-2, the Sapphire Driller rig is expected to move to the Sapele-3 location. A further announcement will be made on commencement of drilling operations at Sapele-3. The proposed location for Sapele-3, an exploration well with an appraisal component, has been selected, subject to attaining government approval. The well design on Sapele-3 has been optimised to take into account the pressure regimes encountered on the Block so far. Sapele-3 is targeting a prospect size of 50 million barrels. The joint venture partner, Vitol, has elected not to participate in the drilling of the Sapele-3 exploration well. Consequently Bowleven, as operator, has proposed drilling this well on a sole risk basis, as Sapele-3, which is designed to appraise the sands of the D1-R Discovery and explore the periphery of the Upper and Lower Omicron fairways, is a potentially significant well with material upside.

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Bowleven Gets Exploratin Extension at Etinde Permit

- Bowleven Gets Exploratin Extension at Etinde Permit

Friday, July 08, 2011
BowLeven plc

Bowleven announced the following update on activities on the Etinde Permit, offshore Cameroon.

Highlights

• One year extension to Etinde PSC exploration phase
• Cameroon LNG project progressing; gas sales term sheet signed by Etinde joint venture and SNH/GDF Suez
• Sapele-2 testing program ongoing; update now expected in around two weeks

Etinde PSC Extension

In accordance with the provisions of the Etinde PSC, Ministerial approval has been received from the Government of Cameroon for a one year extension to the exploration phase of the Etinde PSC (to December 21, 2012). The Etinde Permit comprises blocks MLHP-5, 6 and 7 and planning for continuing exploration and appraisal activities during 2012 across the Etinde Permit is already underway.

Cameroon LNG

The GDF Suez and SNH initiative to advance the monetization of the substantial undeveloped gas resource within Cameroon via an in-country gas aggregation scheme to supply an LNG facility is progressing. On June 30, 2011, GDF Suez, SNH and the Etinde joint venture signed a term sheet that includes the principles intended to govern the sale and purchase of gas to the proposed LNG facility.

Sapele-2 testing program

The Sapele-2 well was drilled to appraise both the Lower and Deep Omicron discoveries and a testing program is ongoing. Mechanical difficulties, which have now been resolved, were encountered during testing activities and consequently results are now expected in around two weeks.

Kevin Hart, Chief Executive of Bowleven, commented, "We are delighted with progress made in securing an exploration extension for Etinde and in agreeing outline terms for the sale of gas to the proposed Cameroon LNG facility. The Etinde PSC extension allows us to maintain momentum in pursuing our dual strategy of targeting high impact exploration in Cameroon whilst also focusing on converting resources to reserves. We eagerly await the test results from Deep and Lower Omicron at Sapele-2."

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Bowleven's Sapele Sidetrack Tests Positive Offshore Cameroon

- Bowleven's Sapele Sidetrack Tests Positive Offshore Cameroon

Thursday, June 09, 2011
BowLeven plc

Bowleven announced the results of testing activities at the Sapele-1ST appraisal well drilling in the Douala Basin, offshore Cameroon. Drill stem testing was performed within the Deep Omicron interval at Sapele-1ST and a light oil flowed on test.

Highlights

• Stabilized flow rate of 3,101 boepd produced on test at Sapele-1ST
• High quality light oil (39.2 degree API) produced on test; oil quality and gas-oil ratio comparable to that encountered at the original Sapele-1 well
• Testing program underway at Sapele-2

Sapele-1ST update

The principal objective of Sapele-1ST was to appraise the Deep Omicron oil discovery encountered in the Sapele-1 exploration well.

As previously announced, the Sapele-1ST well encountered log evaluated net pay conservatively estimated to be approximately 10 meters within the Deep Omicron interval, based on conventional wireline logs. The well was drilled to a TVD of 3,634 meters (4,483 meters measured depth) in water depths of around 25 meters approximately 2 kilometers south east of the Deep Omicron oil discovery in the original Sapele-1 vertical well.

Drill stem testing at Sapele-1ST was conducted over a 71 meter perforated interval. The interval flowed at a stabilized rate of 2,023 bopd of 39.2 degree API oil and approximately 6.47 mmscfd of associated gas on a 56/64 inch choke.

The interval tested at Sapele-1ST correlates on seismic with the equivalent Deep Omicron interval drilled by the original Sapele-1 well, where better developed sands were encountered. The Sapele-1 well had a confirmed oil pressure gradient at Deep Omicron and oil samples were obtained during logging activities. The oil quality, gas-oil ratio and pressures measured on test at Sapele-1ST are comparable to the samples and pressures taken at Sapele-1.

Forward plan

Due to the stratigraphic nature of the Omicron discoveries further analysis and appraisal is required to delineate the fields and to assess the implications for resource estimates and potential development options for these discoveries. The productivity demonstrated by the Deep Omicron test at Sapele-1ST is a key step forward. In addition, a testing program is ongoing at Sapele-2, drilled to appraise both the Lower and Deep Omicron discoveries, and the results from this will be integral to this process.

As planned the Noble Tommy Craighead rig is being released after Sapele-1ST testing for a mandatory recertification process.

An update announcement and conference call are planned on completion of the full test program at Sapele-2, which is expected in around two to three weeks. Further announcements on drilling activities will be made as appropriate.

Kevin Hart, Chief Executive of Bowleven plc, commented, "Bowleven is delighted to announce its first oil flow test in the Douala Basin, offshore Cameroon, at Sapele-1ST. The flow rates produced at Sapele-1ST are believed to be commercial. These are highly encouraging, particularly so given that better sand development was encountered in the original Sapele-1 well at the equivalent level, with good indications of comparability between the two. While further appraisal is required to fully understand the resource potential, we are encouraged by the result and the likelihood of a commercial development at Sapele given the shallow water depths. Our acreage in Cameroon shows increasing potential as we focus on our dual strategy of targeting high impact exploration potential in the Douala Basin and converting resources to reserves."

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Bowleven Hits Hydrocarbons Offshore Cameroon

Bowleven Hits Hydrocarbons Offshore Cameroon

Wednesday, April 20, 2011
BowLeven plc

Bowleven announced that the Sapele-1ST well drilling in the Douala Basin, offshore Cameroon has encountered a total of 23 meters of net hydrocarbon-bearing pay in the Omicron objectives based on the results of drilling, conventional wireline logs, samples of reservoir fluid and pressure data. A testing program is expected to commence shortly.

Highlights

• 23 meters of log evaluated net hydrocarbon pay encountered in the Omicron objectives at Sapele-1ST.
• Preparing for testing program at Sapele-1ST.
• Sapele-2 well progressing on schedule.

Sapele-1ST drilling update

The principal objective of Sapele-1ST was to appraise the Deep Omicron oil discovery encountered in the Sapele-1 exploration well. The well was also designed to intersect both the Upper and Lower Omicron objectives.

The well was drilled to a TVD of 3,634 meters (4,483 meters measured depth) in water depths of around 25 meters approximately 2 kilometers South East from the Deep Omicron oil discovery in the original vertical well.

Bowleven, as operator, provides updates for the reservoir sections encountered at Sapele-1ST below:

Upper Omicron

1.4 meters of net pay were intersected overlying approximately 24 meters of high quality reservoir which following sampling was confirmed as water bearing.

Lower Omicron

The well has intersected a log evaluated hydrocarbon interval that is interpreted to comprise fair quality thinly interbedded reservoir units. Provisional net pay is estimated to be approximately 11 meters, based on conventional wireline logs, with an average porosity of 17%. Fluid samples acquired during logging activities indicate the presence of light oil/gas condensate as reservoir fluid.

Deep Omicron

The well has intersected a log evaluated hydrocarbon interval that is interpreted to comprise high quality thinly interbedded reservoir units. Although less well developed at this location and with a corresponding lower net to gross ratio than the Sapele-1 motherbore, the provisional net pay is conservatively estimated to be approximately 10 meters, based on conventional wireline logs, with an average porosity of 19%. In addition, initial interpretation indicates that certain pay intervals identified in the original Sapele-1 well have been eroded at the Sapele-1ST location. It was not possible to recover, it is believed due to borehole conditions, reservoir fluid samples and pressure data from Deep Omicron. Consequently, pressure communication could not be confirmed from logging activities. The GC tracer however indicates the presence of a light high GOR oil.

Forward plan

Further detailed analysis, including test data, is now required to assess the implications of the Sapele-1ST well on current resource estimates. The impending Sapele-2 appraisal well results will also be integral to this process. The Company is now preparing to conduct a drill stem testing program at Sapele-1ST. Following testing the intention is to release the Noble Tommy Craighead rig for a mandatory recertification process.

Due to the stratigraphic nature of the Omicron discoveries further appraisal will be required and is already underway and planned. The Sapele-2 well, intended to appraise both the Lower and Deep Omicron discoveries, is currently drilling with the Vantage Sapphire Driller rig and is expected to take a further 15 to 20 days (excluding testing). The rig is available for up to three well slots after Sapele-2 with the location selection process factoring in both ongoing technical evaluation and well results.

Kevin Hart, Chief Executive of Bowleven plc, commented, "We are pleased with the results so far on Sapele-1ST (sidetrack). The initial log evaluation is encouraging as it endorses the presence of light oil and gas condensate in the Lower and Deep Omicron fairways encountered with the original Sapele-1 well. Preparations are now underway for a testing program at Sapele-1ST to assess connectivity and deliverability. Given their stratigraphic nature, further evaluation, including appraisal drilling, is required to fully understand sand distribution within these tertiary fairways however results to date are promising in the context of Sapele and the Douala Basin as a whole."

Bowleven Agrees to Option Agreement Extension for Etinde Permit

Bowleven Agrees to Option Agreement Extension for Etinde Permit

Friday, April 01, 2011

BowLeven plc

Bowleven has agreed an extension to the option agreement with Vitol E&P Limited (Vitol) in respect of the Etinde Permit (Etinde) in exchange for Vitol agreeing to fund 50 percent of a planned high specification seismic program over the IE and IF fields.

Under the agreement, Vitol retains the option to acquire an additional 10 percent beneficial interest in block MLHP-7, Etinde, in return for funding an agreed $50 million gross appraisal work program. The option now expires on the earlier of (i) 1 month following delivery of the finalized dataset acquired under a planned 3D Four Component Ocean Bottom Cable (4C OBC) seismic program over IE and IF and (ii) 31 March 2012, subject to the continuation of the exploration phase of the Etinde PSC. The option arrangement excludes blocks MLHP-5 and MLHP-6, Etinde, where the Sapele-1ST and Sapele-2 appraisal wells are currently being drilled. Bowleven will retain operatorship of all three blocks.

Bowleven and Vitol currently have participating interests of 75 percent and 25 percent respectively in the Etinde Permit. However, as part of the agreement for the revised option exercise period, Vitol will fund 50 percent of the planned 4C OBC seismic program. Data acquisition is expected to commence in April 2011, subject to contract finalization and SNH approval.

The opportunity for the 4C OBC survey has arisen due to an in-country seismic crew becoming available at short notice. This will enable the joint venture to acquire high specification seismic over IE and IF in a fast timescale and on economically attractive terms.

The data is expected to provide enhanced imaging, with significant additional upfront benefits in planning appraisal activities and the possible facilitation of a fast track development on block MLHP-7. Final processed volumes are expected to be delivered Q3/Q4 2011.

The new option arrangement with Vitol also recognizes the requirement for further technical work to be completed prior to programming firm future appraisal and development activity for the IE and IF field areas. In this regard, work is continuing to integrate the results of the IE-3 appraisal well, including developing a dynamic reservoir model over IE, and in evaluating the 3D seismic acquired over the IF field area during 2010. Vitol have been actively involved in these joint venture activities.

With the exception of the agreed 50:50 sharing of the 4C OBC costs, each party continues to fund activities on the Permit in accordance with its participating interest. In the event of option exercise, Bowleven's beneficial interest in block MLHP-7 would be 65 percent with effect from the date of exercise, with its beneficial interest in blocks MLHP-5 and MLHP-6 remaining at 75 percent. All interests are expressed prior to the exercise of any state back-in rights.

Kevin Hart, Chief Executive of Bowleven commented, "This is an excellent opportunity to acquire high quality seismic as we progress towards our objective of converting resources to reserves. The new 4C OBC seismic over the IE and IF fields at this stage will augment ongoing appraisal activities and potentially assist a fast track development on the block."