Yaounde, Cameroon Africa. February 2011. (Cameroon News) – Bowleven announced that it has come across a “significant hydrocarbon column” at its exploration well Sapele situated off the coast of Cameroon.

BOWLEVEN, the oil and gas exploration company operating out of Edinburgh which has been indicating a sharp rise of share prices in the past few months announced yesterday that it has come across a “significant hydrocarbon column” at its exploration well off the coast of Cameroon.

Although drilling had to be temporarily ceased after the well encountered a high speed influx of high pressure gas, the latest results from the company’s African target is assumed to be highly lucrative by analysts and the market.
The company said that the next step would be top review and flow test findings that were revealed earlier and is also expecting to add yet another rig from February onwards to drill four wells at the site.

Kevin Hart, chief executive of Bowleven, said the Sapele-1 exploration well had guaranteed the presence of oil and gas at numerous levels “further highlighting the significance and potentially transformational nature of this play”.

He added the results would form the right prelude “for an exciting and successful campaign in 2011″.

Analysts at Fox Davies Capital are of the opinion that the news of a deeper discovery as “excellent” although said that it was too early to put a definite value for the findings.

“The stock, having drifted from its recent highs, is likely to respond well as further details are provided by management. We continue to believe in the upside potential of the off- and onshore Douala Basin and maintain our ‘buy’ recommendation,” it said in a note.

Last month the company said it proposed to drill the Sapele-1 well deeper than the 4,539 metres which had already been completed with the expectations of determining more findings of oil and gas after having made two important hydrocarbon discoveries.
Bowleven holds a 75 per cent stake in the well, while the remaining is held by the US-based farm-in partner Vitol. The Cameroon government exercises the right to take a 20 per cent stake in Bowleven’s activity under a production sharing contract that they had inked earlier. Shares in Bowleven rose by 4.25p to close at 361.25p yesterday.