DOUALA, CAMEROON, AFRICA, NOVEMBER 2010 (NEWS.CAMEROON-TODAY.COM)  -  Shares of BowLeven  rose over 35% after BowLeven announced that it had a successful stint following explorations in West Africa.

DeepSea Oil Rig – Bowleven Cameroon Gulf of Guinea Operates such Rig

The chairman of BowLeven, chaired by Ronnie Hanna, told the press today that he is confident of more positive results as their exploration progresses across the west coast of Africa. to enjoy further exploration success off the African west coast

Share prices in BowLeven rose by 35% after the representatives of the firm announced to the media that their exploration in Cameroon had discovered two prospects that offered great potential for the future and that was even prior to actually getting to their core target.

The discovery and the increase in share prices following it had peaked their cash reserves to £1.4 million revealed a very pleased BowLeven chief executive Kevin Hart.

The oil and gas explorer which is an independent entity based out of Edinburgh said the Sapele well had located oil or gas and condensates at two separate wells off the West African country.

Both the discoveries together are estimated to constitute around 95 million barrels oil equivalent (boe) to 670 million boe, Mr Hart said they were “potentially transformational” for their business.

The directors are optimistic of receiving more good news as the exploration progresses deeper into the oil well. Sapele is being explored to determine five varied prospects that are placed one above the other and embedded deep on the sea bed, on block MLHP 5.

“Even if there was only a one in 50 chance it’s still worth drilling” says Kevin Hart, BowLeven chief executive.
The oil well has so far been able to delve into the first three prospects only out of which one was found not to have a ripe reservoir.

The well is expected to take 40 more days to reach the deepest point which it aims at in the Douala Basin. This is the depth at which BowLeven expects to find a prospect which could yield as much as 3.7 billion boe.

Mr Hart said that if assumptions can be true Bowleven could get as much as 30% of the oil in place, and that a discovery of such volume could even surpass the humungous Jubilee discovery off Ghana that gave an instant makeover to Tullow and took it right up its global rankings.

“Even if there was only a one in 50 chance it’s still worth drilling,” he told The Herald.

Following the successful confirmation of the IE oil discovery off Cameroon in August, Mr Hart said the preliminary findings of the Sapele well shows a lot of promise and optimism for focusing on BowLeven’s operations off Cameroon.

Depending on the results of the appraisal drilling that is still continuing on the IE and IF finds in block MLHP 7, BowLeven is optimistic of also furnishing precise dates as to when they can start production in the 18 months that follow.

The company is also optimistic about success in its future exploration off Cameroon.

Mr Hart is highly hopeful that BowLeven may finally commence production off the country in 2014.

When questioned about the plans on how the production which is expensive would be funded, he said: “One relies on debt markets coming back.”

BowLeven, headed by Ronnie Hanna, also holds a 75% stake in the offshore Etinde permit and it has all powers to pull in other firms into the dela.

Vitol, the Swiss oil trader, has already taken 25% in exchange for investing $100m (£63m) costs.

“There’s always recourse to equity at the end of the day if that’s what’s required,” added Mr Hart.

He said that stakeholders who invested in stocks to provide for the funding in June last year, when BowLeven peaked £71m at 67p per share, were highly excited about their money.

Shares in BowLeven closed up 69.25p at 268.75p, giving it a market capitalization of around £515m.

In December 2008, a leading analyst had said BowLeven was going to be stuck with huge losses because of lack of sufficient funding for their projects.

The company raised £55m at 650p per share in October 2005 before undergoing drilling losses which had proven to be expensive.

ABOUT BOWLEVEN:

Vision:

“It is our vision to build an African-focused, exploration and production company which becomes renowned for its ability to consistently create and realise material shareholder value through exploration-led organic growth and niche acquisitions.”

Strategy:

* Focus on Africa (with particular emphasis on Gulf of Guinea)
* Maintain significant exploration positions (including Operatorship)
* Leverage technical and commercial expertise
* Seek value-adding partnerships as appropriate
* Seek to monetise existing resource base
* Prepared to return value to shareholders to maintain significant equity gearing

Bowleven plc is engaged in oil and gas exploration. The Company holds, through its wholly owned subsidiary, EurOil Limited, a 100% equity interest in the Etinde Permit area being three shallow water blocks in offshore Cameroon, West Africa; namely Blocks MLHP 5, MLHP 6 and MLHP 7.

In total, it has approximately 2,300 square kilometers of exploration acreage located across the Rio del Rey and Douala basins in the Etinde Permit. EurOil Limited has a 100% equity interest in the Bomono Permit, onshore Cameroon, extending to approximately 2,328 square kilometers in the Douala/Kribi Campo Basin.

The Company also holds, through its subsidiary FirstAfrica Oil Limited, a 100% equity interest in both the East Orovinyare offshore block in Gabon, which contains an existing oil discovery that it is seeking to develop, and the Epaemeno Block which is 1,340 square kilometers of exploration acreage in onshore Gabon.