An RNS has just been released by Bowleven (BLVN) for the Cameroon Sapele 1 well (Block MLHP-5, Etinde Permit). Excellent news that a new rig has been contracted from this month but little visibility of what hydrocarbons have actually been discovered in the Cretaceous due to wire line logging not being possible as a result of gas. Markets do not like uncertainty and it will be some time before we have further news on what is down in the Cretaceous, gas or oil. However, oil finds have been confirmed in the upper sections of the drill which gives good support to the current price. The rumours of technical problems circulating in the City were therefore correct which explains the dive in the share price when it hit around the £4 mark, it would have been appropriate for the company to issue an RNS to clarify statements made in investor briefings.
Highlights were:
- Drilled to a total depth (TD) of 4,733 metres. Drilling was halted due to technical limitations after encountering a high pressure gas reservoir in the Cretaceous. Logging of the interval was not possible.
- Oil, condensate and gas confirmed as present in the Cretaceous and the well may now have encountered a significant hydrocarbon column at target depth
- Further analysis of mudlogging and wireline data, together with gas chromatograph ratio analysis, has confirmed oil shows were encountered within thin sands in the upper part of the Cretaceous Epsilon Complex.
- Bowleven has contracted an additional jack-up rig (the 15K rated Vantage Sapphire Driller) which is expected to be mobilised from Gabon towards the end of February 2011. The contract contains a programme of three firm wells plus one contingent well
The new rig will have better capability to deal with the high pressure gas which has hindered this drill.
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