Bomono Operations Update

RNS Number : 2144L

BowLeven Plc

08 January 2016

 

8 January 2015

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

Bomono Operations Update

Bowleven, the Africa focused oil and gas exploration group traded on AIM, is pleased to announce the following update on activities on the Bomono Permit, onshore Cameroon.

The extended flow testing programme at Moambe and Zingana is now complete. The results to date continue to support plans for an initial supply of around 5 to 6 mmscfd of gas for power generation under a development scheme formulated with Actis and Eneo in Cameroon.

As outlined in the Bomono Exploitation Authorisation Application (BEAA) submitted to the Cameroon authorities in December 2015, this initial development scheme is focused on the provision of feedstock for power generation from the shallower gas-prone sands. The block-wide evaluation of these sands and the additional potential of the deeper sands that were also targeted with the wells are ongoing.

The results of the combined tests provide the confidence required to progress with the gas sales agreement and development planning, consistent with plans to deliver initial near-term production alongside the continuing evaluation of the acreage.

Further update announcements will be made in due course, as appropriate.

Kevin Hart, Chief Executive, said:

"We are pleased with the results of the extended flow testing programme at Bomono and are now looking forward to advancing gas sales negotiations and development planning."

ENQUIRIES

For further information please contact:

Bowleven plc

Kevin Hart, Chief Executive                                          00 44 131 524 5678

Kerry Crawford, Finance Director       

Brunswick Group LLP

Patrick Handley                                                              00 44 207 404 5959

Simon Maine                                                   

Macquarie Capital (Europe) Limited (Nomad)                                     

Jon Fitzpatrick                                                                00 44 203 037 2000

Ken Fleming

Nick Stamp

Notes to Editors:

Bowleven is an African focused oil and gas exploration group, based in Edinburgh and traded on AIM. Bowleven's strategy is focused on creating and realising material value principally through exploration led organic growth.  Bowleven holds equity interests in two permits in Cameroon, with one located offshore in shallow water (operated by NewAge) and the other onshore (operated by Bowleven).

Bowleven also holds an equity interest in an onshore block in Kenya, operated by Adamantine Energy, and has been awarded three blocks in Zambia, with applications on two blocks pending.

Notes to Announcement:  

(1)        The technical information in this release has been reviewed by Ed Willett and David Clarkson, both qualified persons for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies.  Ed Willett, Exploration Director of Bowleven plc, is a geologist and geophysicist, a Fellow of the Geological Society (FGS) and a member of the Petroleum Exploration Society of Great Britain (PESGB) with over 28 years' experience in oil and gas exploration and production. David Clarkson, Operations Director of Bowleven plc, is a Chartered Engineer and Fellow of the Institution of Mechanical Engineers with extensive oil and gas industry experience. 

(2)        Bowleven has a 100% interest in the Bomono Permit.

(3)        Actis is a private equity firm investing exclusively in Africa, Asia and Latin America.  In 2014, Actis acquired a 56% stake in Cameroon's national electricity utility, ENEO.  ENEO provides over 900MW of generation and supplies electricity to more than one million customers.

(4)        Under a gas-to-power development scheme, a production rate of 5 mmscfd would be expected to generate approximately 25MW of power.

Glossary of Terms:

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

Actis	Actis LLP
AIM	the market of that name operated by the London Stock Exchange
Bomono Permit	the production sharing contract between the Republic of Cameroon and EurOil, dated 12 December 2007, in respect of the area of approximately 2,328km² comprising former blocks OLHP-1 and OLHP-2 onshore Cameroon; or, as the context may require, the contract area to which that production sharing contract relates
Bowleven	Bowleven plc (LSE:BLVN) and/or its subsidiaries as appropriate
ENEO	Eneo Cameroon SA, an Actis LLP affiliated company
extended well/flow tests/testing	extended well/flow tests offer the opportunity to gain reservoir and production data not available from a traditional, short duration, well drill-stem tests. The longer flow period provides a greater radius of investigation from the wellbore which, depending on the nature of the reservoir, can assist in identifying reservoir boundaries and proving up reserves
mmscfd	million standard cubic feet of gas per day
MW	Megawatt; a unit of power equal to one million watts

 

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