Oil & Gas Corporate News
Bowleven (LON:BLVN) (BUY, £4.50) (BLVN, 395p, ? (0.38%)) announced that the Sapele-1 exploration well drilling in the Douala Basin, offshore Cameroon has encountered further hydrocarbon-bearing pay in both the Tertiary and Cretaceous objectives based on the results of drilling, wireline logs, samples of reservoir fluid and pressure data. The well was designed to intersect multiple stacked objectives of Tertiary to Cretaceous age. Wireline log evaluation indicates all of the five objectives to be hydrocarbon-bearing with net pay confirmed in three, based on fluid samples. The well has reached a current total depth (TD) of 4,539m and the intention is to set liner and drill onwards, subject to attaining various approvals, on completion of current logging activities.
Comment: A very good result that extends the prospectivity of the acreage down to the Cretaceous, de-risking a number of similar prospects. The Company is chasing oil deeper down by extending the well beyond current TD and has identified a number of objectives to be tested. The Company needs to complete the evaluation of the penetrated Cretaceous section before providing resources estimates as well as a view on the commerciality of the discovery. The well being designed to intersect multiple independent exploration targets from a single location, a number of the targets have been intersected at sub-optimal locations and we can expect better reservoir characteristics away from the well bore. The lowering of the risk on pre-drill resources estimates raise our risked NAV beyond 450p where we set our new target price.
Circle Oil (LON:COP) (BUY, £0.90) (COP, 36.5p, ? (4.29%)) announced that the Al-Amir SE-7 well which is being drilled in the N W Gemsa Development Lease, Egypt ( Circle: 40% Working Interest) and intended to be a Kareem sands water injector, has been drilled to a depth of 9,580 ft and the 9 5/8" casing has been run and cemented into the top of the Kareem Formation shales. Preliminary analysis of open hole logging of this upper part of the well indicates potential for hydrocarbons in the South Gharib Formation in the order of 6 ft in thickness. This interval is similar to that encountered in the Al Amir SE-6X and Al Ola-1X wells, but the interval has not been tested and, as planned, is now cased off. Drilling is…
