Bowleven updates on Sapele 2 tests and gives a further 2 week guidance on results. Mechanical issues are standard in drilling and it’s good to see they are back on track. Permit extension is pleasing.
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.
– 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.
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.”