Latest test from IM-5 well delivered flow rates of more than 17,800 barrels a day
Oil and gas exploration firm Bowleven says its latest tests from a find offshore Cameroon have “surpassed expectations”. Bowleven confirmed earlier in April a “significant liquids” find at the IM-5 test well offshore Cameroon which was reported to be “condensate-rich” in flow tests at combined rate of 7,000 barrels of oil equivalent a day.
The Edinburgh-based explorer said today a second test of IM-5 delivered maximum flow rates of more than 17,800 barrels a day.
Bowleven said the IM-5 drilling and testing programme is now complete and the well “will be suspended as a future development/production well”.
Kevin Hart, chief executive of Bowleven, said: “We are delighted with the overall results from the IM-5 well which have surpassed our expectations.
“The flow rates that have been achieved on test demonstrate substantial well deliverability from both the Middle and Intra Isongo intervals and further strengthen the foundation for the planned phased development of Etinde.
“Due to the high deliverability of the Intra and Middle Isongo reservoirs we are confident we will be able to reduce the number of wells required to supply the planned fertiliser plant.
“The IM-5 well has not only delivered a substantial increase in estimated hydrocarbon volumes but it has also confirmed the presence of liquids rich hydrocarbons at the Isongo Marine field, a significant value driver for development plans on Etinde.”
Last November Bowleven agreed a strategic alliance with Petrofac to pursue development opportunities in Cameroon.
Petrofac has agreed to provide engineering services to Bowleven's Cameroonian subsidiary Euroil to put together a development plan for first phase development of Bowleven's Etinde assets.
Under the terms of the tie-up, Euroil will pay Petrofac for these services and Petrofac will then deliver the infrastructure plan to develop the assets.
Petrofac will take a return on its investment through a share of the production revenues, with first production expected to begin by 2016.
In a market update today, Hart said: “We are continuing to make good progress on the path to development in Cameroon.
“With the recently announced agreement between Bowleven, Ferrostaal and SNH of a gas sales term sheet for the proposed fertiliser plant and work already underway to update the formal EEAA to integrate the very successful IM-5 well results, the group remains focused on delivering the planned phased Etinde development and reaching FID, targeted by the end of 2013.
"Achieving the first development phase will deliver value to all stakeholders and open up the significant hydrocarbon potential of the Etinde Permit uncovered by our successful exploration activities. We look forward to the work ahead of us in 2013.”
Bowleven shares were up nearly four per cent in early trading.