Oil & Gas Corporate News
Bowleven (LON:BLVN) (BUY, £3.00) (BLVN, 161.5p, ? (4.3%)) announced that on 14 September 2010 it commenced drilling operations on the Sapele-1 exploration well on block MLHP-5, Etinde Permit, offshore Cameroon. The targets of the Sapele-1 exploration well are a series of stacked reservoir objectives, from the proven Miocene fairway down to the deeper Cretaceous fairway that is prolific elsewhere in West Africa. The Sapele-1 well is to be drilled to an estimated target depth of circa 4,450m and drilling is expected to take approximately 70 to 80 days, excluding testing. The MLHP-5 block is located in the Douala basin which is an emerging hydrocarbon bearing province and the results of this well will have significant implications for the wider potential of the acreage.
Comment: Sapele-1 is a high impact exploration well with a gross expected pre-drill resources estimate of close to 600MMbbl of oil or 200MMbbl of condensates, most of it in the Cretaceous, and an aggregate chance of success of 15-20% with an added probability of 50/50 between oil and condensates. We carry a blended risked value of 95p for the prospect in our risked NAV but clearly the unrisked upside is just enormous. We agree with the Company that the Douala basin is unexplored and potentially very prolific, a number of oil and gas discoveries having been made both offshore and onshore. Bowleven has exploration licences on- and offshore in the basin and is very well positioned to prove up that potential. We reiterate rating and price target.
KNOC provided an update to Dana Petroleum Plc (LON:DNX) (DNX, 1787p, ? (0.11%)) shareholders in relation to the conditions to the share offer. KNOC confirmed that it has now received all necessary consents and approvals for the share offer on terms satisfactory to KNOC from the competent authorities in Norway. KNOC further confirmed that no consents or approvals are required for the share offer from the competent authorities in Egypt. KNOC encouraged Dana shareholders to accept the share offer immediately and, in any event, by no later than 1.00pm on 23 September 2010. KNOC reiterated that the share offer of 1,800p per Dana Share is full and final and will not be increased save that KNOC reserves its right to increase it if a competitive situation…
