Bowleven set to drill four wells next year

Published on Monday 2 November 2009 21:06

NEXT year will be the "most active" in Bowleven's history according to chief executive Kevin Hart, who yesterday revealed that full-year losses at the oil and gas explorer had narrowed from $10.9 million (£6.6m) to $10.2m, primarily due to the strength of the dollar.

The Edinburgh-based firm, which focuses on west Africa, confirmed plans to drill four appraisal wells next year in its "Etinde" block off Cameroon.

Kerry Crawford, Bowleven's deputy financial director, said a high-impact exploration well in the Douala Basin had the potential to be "transformational".

She added: "The well targets cretaceous and tertiary rock layers that have proven to be prolific elsewhere in west Africa. The real benefit for us is that we can access them in shallow, rather than deep water."

All four wells in Etinde will be drilled in partnership with Vitol, the Swiss company with which Bowleven signed a "farm-out" contract in August, under which Vitol will take a 25 per cent stake in the development.

John Brown, Bowleven's finance director, said the work programme would cost between $145m and $170m, but Vitol was contributing about $100m.

Richard Griffith, an oil and gas analyst at Evolution Securities, wrote Bowleven off as "dead in the water" in December. But the company went on to raise about $113m from investors in June.

Griffith said yesterday: "Bowleven can look forward to 2010 – it is well financed, has a four-well drilling programme planned for its Etinde permit and, in Vitol, has a partner with financial clout."