I have been trading in and out of AIM listed, Cameroon focused oil explorer
Bowleven (BLVN) for the last 6 weeks or so following their Sapele-1 well
discovery in early November. I am always nervous to trade a stock prior to
a major RNS announcement relating to further potential oil discoveries
since there can be opportunities to buy the share after the news with a lot
less risk, assuming it is positive. Just look at Xcite Energy, you could
have bought it for the same price as the pre flow test result without all
the stress.
However, I could not resist a little “punt” on Bowleven today with an RNS
likely on the high potential deeper Cretaceous target. The initial
discoveries in November were the Lower Omicron, which showed light oil and
gas condensate in a moderate quality reservoir but more important was the
Deep Omicron which encountered high quality sands. Initial logging has
shown 31-43 metres of net pay at the point of the last major RNS on 25th
November at a depth of 3,483 metres. Kevin Hart, Chief Exec, has talked of
a potentially transformational discovery.The company announced that it
would drill to a depth of 4,450 metres to test the deeper Cretaceous within
the Douala basin. A process taking 20-30 days, making the drilling process
complete around Christmas Day 2010.
Now we are in early January it is likely that the logging and appraisal
process are taking place which means an update RNS is probably due today or
early next week.
