SHARES in Bowleven jumped almost 6 per cent after the Edinburgh-based explorer said it had encountered “liquid-rich” hydrocarbons off the coast of Cameroon.
The firm revealed the potential discovery in the Etinde field last month and is preparing for testing operations after its
“IM-5” well confirmed the presence of hydrocarbons, including enough gas to meet the needs of a proposed fertiliser plant.
Chief executive Kevin Hart 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.”
Mike van Dulken, head of research at Accendo Markets, said: “It’s always good news to hear of liquid being found as
opposed to gas, which is more expensive to get out of the ground and transport.
“The liquid-to-gas ratios look attractive, even more so when gas is sufficient enough to meet the proposed fertiliser plant’s requirements and so can be used locally.”
In November, Bowleven unveiled a $500 million (£327.5m) deal with FTSE 100 energy services firm Petrofac to develop the Etinde gas field, off the coast of western Africa. Petrofac will
provide Bowleven with the funding for the initial stage of the development work on the Etinde permit, with the first gas expected to flow in 2016.
Shares in the company ended the day up 4.5p at 80.5p, giving it a market value of £237.3m.