Oil & Gas Corporate News
Bowleven (LON:BLVN) (BUY, £4.50) (BLVN, 357p, ? (2.29%)) announced that the Sapele-1 exploration well drilling in the Douala Basin to TD of 4,733m. Drilling was halted due to technical limitations after encountering a high pressure gas reservoir in the Cretaceous. The bottom hole section has been cemented and is now being abandoned in advance of planned appraisal drilling. The Sapele-1 well location was selected to intersect multiple independent exploration targets from the proven Tertiary fairway down to the deeper Cretaceous fairway from a single location. On 10 January 2011, Bowleven advised that further Cretaceous targets had been identified beneath the original planned target depth of the well (4,450m) and the plan was to deepen the well. The well was drilled to a TD of 4,733m before drilling was halted due to a rapid influx of very high pressure gas. Consequently, logging of the interval was not possible and the bottom hole section is being abandoned. Based on an initial analysis of the major step change in pressure encountered and the interpretation of the seismic, it is considered that the well may have encountered a significant hydrocarbon column in the Cretaceous. 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. Further interpretation and calibration of the well and seismic data is required to assess fully the implications for Cretaceous volumetrics. The Sapele-1 well has further highlighted the significant potential of the Douala Basin, with hydrocarbons encountered in both the Tertiary and Cretaceous fairways. The stratigraphic nature of the Sapele-1 discoveries requires that further evaluation and appraisal is required to establish their scale and commerciality. Accordingly, the next step, subject to approval by the joint venture, is appraisal drilling to delineate the Tertiary discoveries. Due to mechanical issues as a consequence of having to abandon the lower hole section it has been decided to carry out testing in the immediate appraisal well. An extensive drilling programme is being planned for 2011 across the Etinde Permit. As a result, Bowleven has contracted an additional jack-up rig which is expected to be mobilised from towards the end of February 2011.
Comment: The announcement of a deeper discovery is excellent news, although no details are available at this stage that could enable us…
