Bowleven plc, the African focused oil and gas company listed on AIM, is pleased to announce the results of an independent study on the recent IF oil discovery on Block MLHP-7 of the Etinde Permit in the Rio Del Rey Basin, offshore Cameroon.
An independent estimate of the IF Contingent Resources has been completed by TRACS International Consultancy Limited (“TRACS”), summarised as follows:
-Net Contingent Resources Bowleven 100%* : Etinde MLHP-7
-1C MMbbls: 23.9
-2C MMbbls: 53.1
-3C MMbbls: 94.3
*Under the PSC the state oil company of Cameroon, Societe Nationale des Hydrocarbures (“SNH”), has the right to elect to take a 20% participating interest in the development.
No reserves are presently defined for the IF discovery as appraisal drilling is still required. The Resources are contingent on appraisal success, with probability of success defined as 65% by TRACS.
Economic evaluations of the Contingent Resource cases, being the estimated post-tax net present value at a 10% discount rate of the project and applying the PSC terms, has been prepared by TRACS as shown below. All values are referenced to 1 July 2009.
-Net Contingent Resources Bowleven 80%*: Etinde MLHP-7
-1C $ million: 10.6
-2C $ million: 556.4
-3C $ million: 1,038.4
The Nymex crude oil (light) forward curve from 13 May 2009 was assumed for oil through to 2017 and an inflation rate of 1.8% per annum applied thereafter.
The resource and future revenue estimates presented in the CPR have been prepared in accordance with definitions presented in the SPE’s Petroleum Resources Management System and the risking of contingent resources has been done in accordance with the LSE/AIM Guidance note for Mining, Oil and Gas Companies.
As stated in Bowleven’s 2008 Interim Report, the Company continues to review all available funding options to progress the business and increase shareholder value. This includes the potential farmout of part of the Group’s existing positions in Cameroon and Gabon and the raising of equity and debt finance.
Kevin Hart, Chief Executive, said:
"The TRACS report confirms independently the excellent potential already identified by Bowleven's technical team. Our combined views suggest that further appraisal is definitely warranted and that acommercial development is very likely.”
The company also announced that at the request of a number of interested parties, the deadline for submission of bids related to the potential purchase of Petrolifera's Argentinean operations has been extended until July 10, 2009.
