Positive drilling announcement out from Bowleven

Bowleven Plc

22 February 2013

22 February 2013

Bowleven plc (‘Bowleven’ or ‘the Company’)

IM-5 drilling update

IM-5 well, Block MLHP-7, Etinde Permit, Cameroon

Bowleven, the Africa focused oil and gas exploration group traded on AIM, is pleased to announce that the IM-5 well drilling offshore Cameroon has now reached the Middle Isongo primary objective of the well and has encountered liquids-rich hydrocarbon-bearing pay in both this and the Intra Isongo reservoir objectives based on the results of drilling, core analysis, wireline logs, fluid samples and pressure data.

The well, which was designed to appraise the reservoir and fluid properties of the Middle Isongo and to explore the additional potential of the Intra Isongo, has reached TD of 3,430 metres MD. The forward programme is to set liner and conduct testing operations.

Highlights

   --    Validation of sufficient gas volumes to meet fertiliser plant requirements. 

— Samples obtained during logging confirm the presence of liquids-rich hydrocarbons in the Intra and Middle Isongo intervals.

   --    Approximately 25 metres of log evaluated net hydrocarbon-bearing pay over a gross interval of approximately 33 metres encountered in the Middle Isongo primary objective. 

— Log evaluation indicates hydrocarbon water contact (HWC) at approximately 3,360 metres MD, extending and deepening the hydrocarbon column intersected at IM-3 by 93 metres, with total column height intersected by the two wells of 145 metres.

   --    A further 20 metres of high quality sands were encountered directly beneath the HWC. 

— Approximately 70 metres of net hydrocarbon-bearing pay over a gross interval of approximately 80 metres now confirmed in the Intra Isongo following log evaluation, with hydrocarbon down to the base of the reservoir.

   --    Preparing for testing operations. 

Drilling update

The primary objective of the IM-5 appraisal/development well was to appraise the reservoir and fluid properties of the Middle Isongo sands. The secondary objective of the well was to investigate the additional potential of the Intra Isongo exploration prospect, a potentially extensive amplitude supported channel system potentially comprising both structural and stratigraphic trapping elements. The well was also designed to intersect the Upper Isongo sands and confirm that these were present at this location and water-bearing as prognosed.

Since Bowleven’s previous IM-5 drilling update announcement on 30 January 2013, the well, which is drilling in shallow water depths of around 56 metres, has been drilled to a depth of 3,430 metres MD. Logging activities have been performed and core was acquired as planned in the Middle Isongo reservoir interval.

Bowleven, as operator, provides the following updates on the reservoir sections intersected:

Middle Isongo

The well has intersected a log evaluated gross hydrocarbon interval of approximately 33 metres. The net pay is estimated to be approximately 25 metres. Log evaluation indicates that a HWC has been encountered at approximately 3,360 metres MD, extending and deepening the hydrocarbon column encountered at the IM-3 well by 93 metres. A further 20 metres of reservoir quality sands were encountered beneath the HWC and the well was still in sand at TD.

Core analysis and fluid samples acquired during operations confirm the presence of liquids-rich hydrocarbons. Initial sample analysis suggests a liquids to gas ratio in the region of 150 bbls/mmscf.

Intra Isongo discovery

The well has intersected a log evaluated gross hydrocarbon interval of approximately 80 metres in reservoir sands which correspond to the seismic event identified pre-drill. The net pay is estimated to be approximately 70 metres. No HWC was encountered.

Fluid samples acquired during logging activities confirm the presence of liquids rich hydrocarbons. Initial sample analysis suggests a liquids to gas ratio in the region of 200 bbls/mmscf.

Upper Isongo

The well has intersected approximately 32 metres of high quality reservoir sands in the Upper Isongo. As predicted, log evaluation indicates these sands are water-bearing at this location. Sand thickness and quality were consistent with pre-drill expectations.

Forward plan

The plan is to set liner prior to testing. The testing programme is currently being finalised.

Updated volumetrics for the Middle and Intra Isongo will be generated following completion of the well (including testing) and the integration and evaluation of well and seismic data. Based on preliminary analysis an increase in both the P90 and P50 volumes is anticipated.

Technical data relating to the IM-5 well is available on our website www.bowleven.com under the heading “Presentations”; the presentation is titled “IM-5 drilling update – 22 February 2013”.

Further announcements on drilling operations will be made as appropriate.

Bowleven will announce its interim results for the six months ended 31 December 2012 on Wednesday 20 March 2013.

Kevin Hart, Chief Executive, said:

“We are very pleased with the results so far on the IM-5 well, which has confirmed the presence of liquids-rich hydrocarbons in both the Middle Isongo primary objective and the potentially significant Intra Isongo discovery. We eagerly await the results of the forthcoming testing.

The Group is intensely focused on delivering the key requirements that will enable the final investment decision for the Etinde development to be made. With the validation of sufficient gas volumes to meet the requirements of the proposed fertiliser plant, our efforts continue on finalising the gas sales heads of terms with Ferrostaal and obtaining the Exploitation Authorisation from the government.”