Bowleven prepares $139m West African exploration campaign

Scottish oil explorer Bowleven said yesterday it was “more convinced than ever” about the potential of its West African prospects as it prepares to launch a huge operation to prove its reserves.

Chief executive Kevin Hart was speaking as the Edinburgh-based firm revealed in preliminary results that it had $139 million to spend on finishing its exploration off the coast of Cameroon.

Hart said it had been “an exciting year of intense operational activity” for Bowleven, and the initial discovery of oil and gas at its Sapele-1 exploration well was a key event for the company. Subsequent drilling in the same area had consistently encountered oil.

“These results highlight the significant prospectivity and potential of our acreage in the Douala Basin,” he said.

“We are now more convinced than ever about the exploration and development potential of our acreage and we look forward to pursuing the opportunities our Cameroon acreage holds.”

Bowleven reported a loss of $76.8m in the year to 30 June, including unsuccessful exploration costs of about $42m.

The firm’s cash balance fell from $96.6m at the end of June to $15 million on 31 October, as it continues to pour money into exploration.

Last month Bowleven announced a cash call to investors to fund next year’s drilling programme as it seeks to make good on its Cameroon assets. The firm expects proceeds of approximately $124m from the share placing, which is conditional upon shareholder approval on Monday. Shares in Bowleven closed up 5.25p at 107.25p.