Sapele-1 sidetrack (Sapele-1ST), Block MLHP-5

RNS Number : 2434F

BowLeven Plc

20 April 2011

 



20 April 2011

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

Sapele-1 sidetrack (Sapele-1ST), 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-1ST well drilling in the Douala Basin, offshore Cameroon has encountered a total of 23 metres 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 programme is expected to commence shortly.

Highlights

·    23 metres of log evaluated net hydrocarbon pay encountered in the Omicron objectives at Sapele-1ST.

·    Preparing for testing programme 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 metres (4,483 metres measured depth) in water depths of around 25 metres approximately 2 kilometres 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 metres of net pay were intersected overlying approximately 24 metres 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 metres, 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 metres, 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 programme 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.

A map indicating the location of the Sapele-1ST well is available on our website www.bowleven.comunder the heading presentations; the presentation is titled "Sapele drilling locations".  Previous press releases relating to Sapele-1 are available on our website in the 'Investor Relations, announcements section'.

An update announcement and conference call are planned on completion of the full test programme on Sapele-1ST.   Further update announcements on drilling activities will be made as appropriate. 

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 programe 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."

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
GOR	Gas Oil Ratio.
mmboe	million barrels of oil equivalent
P50	50% probability that volumes will be equal to or greater than stated volumes

 

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