TIDMBLVN
RNS Number : 6731S
BowLeven Plc
24 November 2011
24 November 2011
Bowleven plc ('Bowleven' or 'the Company')
Further discovery at Sapele-3
Sapele-3 exploration well, Block MLHP-5, Etinde Permit, Offshore
Cameroon
Bowleven, the West Africa focused oil and gas exploration group
traded on AIM, announces that the Sapele-3 exploration well
drilling in the Douala Basin, offshore Cameroon, has been drilled
to a total depth (TD) of 4,480 metres. Having successfully extended
the previously defined play fairways at the Paleocene and shallower
Tertiary intervals, the well is now being suspended for future
re-entry, testing and potential use as a development well. With
downhole temperatures in the Paleocene exceeding the rating of the
available surface equipment, the favoured strategy is to defer
testing until an optimal, longer duration test programme can be run
across both the Epsilon and Deep Omicron intervals.
Highlights
-- Further 8 metres of net hydrocarbon pay intersected in deeper
reservoirs, in addition to 11 metres of net pay within Deep Omicron
interval previously announced
-- Reservoir package in Paleocene Epsilon Complex in same gross
stratigraphic interval encountered in Sapele-1
-- Indications from shows and mud log analysis suggest Epsilon reservoir package is oil-bearing
-- Significant extension of Epsilon play fairway with potential for better developed sands updip
-- Well now being suspended for future re-entry, testing and potential use as a development well
-- LOI issued and agreement in principle reached for rig for 2012 Etinde drilling programme
Kevin Hart, Chief Executive of Bowleven plc, commented:
"Sapele-3 has been a successful well, our fourth consecutive
well in the Douala Basin to encounter significant hydrocarbon
intervals at multiple levels. The discoveries made in the Epsilon
Complex and shallower Tertiary intervals, representing a total of
19 metres of net hydrocarbon bearing pay, have at each level
extended considerably the previously defined play fairway
boundaries. The extensive data acquired during drilling operations
will contribute significantly to the derisking of appraisal
locations and inform future development and exploitation planning.
The next key step is to evaluate this well data and plan an optimal
test programme for the Deep Omicron and Epsilon intervals.
We are also pleased to have secured a suitable rig for the
planned programme on Etinde next year, and look forward to further
progress towards our dual asset objectives of converting resources
to reserves and continuing to explore the potential of the Douala
Basin."
Sapele-3 drilling update
The Sapele-3 well is located circa 16 kilometres north-west of
Sapele-1 and circa thirteen kilometres north-west of the D-1r
wells, in water depth of approximately 30 metres.
On 14 October 2011, Bowleven announced that the well had
encountered oil and gas condensate in the Deep Omicron and D-1r
equivalent intervals respectively and that drilling within the Deep
Omicron interval was to continue.
On 1 November 2011, Bowleven announced that MDT sampling and
extensive sidewall core programme had been carried out across Deep
Omicron and that, subject to final government approval, it planned
to drill ahead through the Deep Omicron interval into the Paleocene
Epsilon Complex previously intersected by the Sapele-1 well.
Analysis of the MDT and sidewall core data over the Deep Omicron
interval at Sapele-3 has confirmed the presence of hydrocarbon
bearing sands throughout the 11 metre section within the lower part
of the interval and appears to support the view that residual
hydrocarbons are present in a further 11 metre zone at the top of
the interval.
The well has now drilled through the Epsilon Complex and reached
the programmed TD of 4,480 metres. Wireline logging was undertaken
across the Epsilon interval at TD.
Epsilon Complex
The well intersected log-evaluated net hydrocarbon pay of
approximately 8 metres in the deeper reservoirs, of which 6 metres
were located in reservoir sands with good porosity and permeability
within the Paleocene Epsilon interval. Gas chromatograph ratio
analysis and shows while drilling indicate that the sands are
likely to be oil-bearing.
The Epsilon reservoir interval is interpreted as a basal sand
reservoir unit in the same gross stratigraphic interval as that
encountered in the original Sapele-1 discovery well and located
towards the edge of a potentially extensive channelised system.
Sapele-1 confirmed the presence of both gas condensate and oil at
the Epsilon interval. As with the shallower Tertiary discoveries in
Sapele-3, the discovery at the Epsilon interval represents a
substantial step-out from Sapele-1 and extends the known play
fairway well beyond the previously mapped area. The Sapele-3 well
was not selected on the basis of an optimal location at which to
intersect the Epsilon Complex, as the original objectives of the
well were in shallower Tertiary intervals, and seismic
interpretation highlights the potential for better developed sands
updip within the same interval. This potential will be taken into
account in the selection of future appraisal locations.
Forward Plan for Testing
The Sapele-3 well is now being suspended for future re-entry,
testing and potential use as a development well. Immediate testing
of the Epsilon interval was not possible, as downhole temperatures
exceeded the temperature rating of the available surface equipment.
Testing of the Deep Omicron interval, although possible at this
stage, would have compromised the integrity of the well and added
significant complexity and risk to future test operations in
Epsilon. In addition a short flow test of Deep Omicron would have
provided very limited information in the context of assessing
future development potential, and Bowleven intends to use the
additional time to design an optimal, longer duration test
programme at both intervals. The current intention is to undertake
testing during the 2012/13 drilling campaign on Etinde.
Following the completion of suspension operations, the Sapphire
Driller jack-up will be released from contract.
Bowleven will now integrate the data from the Sapele-3 well,
including the MDT data and sidewall cores acquired over the Deep
Omicron interval, within its overall technical evaluation of the
Omicron, Epsilon and D-1r equivalent systems across the Douala
Basin side of the Etinde Permit. Volumetric updates for Deep
Omicron and Epsilon, reflecting the integration of the Sapele-3
data, will follow in due course.
Jack-up Rig for 2012 Etinde Drilling Programme
As previously announced, the Group intends to pursue a 2012 work
programme that includes up to three appraisal wells and one
exploration well on the Etinde Permit.
To this end, Bowleven has issued an LOI and reached agreement in
principle for a jack-up drilling rig to drill a programme of two
firm and up to two further option wells on the Etinde Permit in
2012. Bowleven plans to sign the contract by the end of the month,
subject only to securing confirmatory government approval of the
contract award. The rig is currently expected to commence
operations for Bowleven in Q2 2012, in immediate continuation of
work for another operator in the region.
ENQUIRIES
For further information please contact:
Bowleven plc
Kevin Hart, Chief Executive 00 44 131 524 5678
Brunswick Group LLP
Patrick Handley 00 44 207 404 5959
Natalia Erikssen
Bank of America Merrill Lynch (Nomad)
Andrew Osborne 00 44 207 628 1000
Tony White
Notes to Announcement:
(1) The technical information in this release has been reviewed
by Ed Willett, who is a qualified person for the purposes of the
AIM Guidance Note for Mining, Oil and Gas Companies. Ed Willett,
Exploration Director of Bowleven plc, is a geologist and
geophysicist, a Fellow of the Geological Society (FGS) and a member
of the Petroleum Exploration Society of Great Britain (PESGB) with
over 25 years' experience in oil and gas exploration and
production.
(2) 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.
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 km(2), 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
LOI letter of intent
MDT modular formation dynamics tester
TD total depth
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLUOUBRASAAUAA
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