Operations Update - Etinde Permit, Cameroon

RNS Number : 0156K

BowLeven Plc

08 July 2011

 



8 July 2011

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

Operations Update - Etinde Permit, Cameroon

Bowleven, the West Africa focused oil and gas exploration group traded on AIM, is pleased to announce 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 programme 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 21 December 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 monetisation of the substantial undeveloped gas resource within Cameroon via an in-country gas aggregation scheme to supply an LNG facility is progressing.  On 30 June 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 programme

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

An update announcement and conference call are planned on completion of the full test programme at Sapele-2. 

Kevin Hart, Chief Executive of Bowleven plc, 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."

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 Announcement:

(1)        The information in this release reflects the views and opinions of Bowleven as operator and has not been reviewed in advance by the Etinde Permit joint venture partners.

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.

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
GDF Suez	GDF Suez S.A.
LNG	liquefied natural gas
PSC	production sharing contract
SNH	Société Nationale des Hydrocarbures, the national oil company of Cameroon

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