Up 10% today any interest.

November 30, 2011
http://oilbarrel.com/news/bowleven-claims-a-fourth-successful-well-in-the-douala-basin-offshore-cameroon-in-west-africa

Bowleven Claims A fourth Successful Well In The Douala Basin Offshore Cameroon In West Africa
The debate surrounding Edinburgh-based Bowleven plc for most of this year has not been about whether the company has discovered hydrocarbons with on its acreage (Blocks MLHP-5, MLHP-6 and MLHP-7) in the under-explored Douala Basin offshore Cameroon in West Africa, but more on the range and extent of the discoveries. Concerns over the complexity of the stratigraphic structures have seen the AIM companys shares fluctuate widely in recent months, mostly in a downward trend. The uncertainties centre on whether the company has found a world class oil and gas province, whose potential can be realised, as once seemed likely, or not.
However, the comment on the latest announcement from Bowleven by Kevin Hart, the groups Chief Executive accentuates the positive. He says: Sapele-3 has been a successful well, our fourth consecutive well in the Douala Basin to encounter significant hydrocarbon intervals at multiple levels. The discoveries made in the Epsilon Complex and shallower Tertiary intervals representing a total of 19 metres of net hydrocarbon bearing pay, have at each level extended considerably the previously defined play fairway boundaries.
The current phase in the Bowleven story started earlier this year when the Sapele-1 wildcat on MLHP-5 found hydrocarbons in five target reservoirs ranging from the proven Miocene fairway to the deeper Cretaceous. That well was abandoned after a rapid influx of very high pressure gas in the Cretaceous section but not before proving the Miocene oil play extends into Cameroonian waters and that the deep Cretaceous play which has proven to be such a game changer elsewhere in West Africa is also present here.
The company decided to drill a sidetrack which was designed to target the Miocene Deep Omicron some two kilometres to the southeast of the original Sapele-1 discovery. By April 2011 we learned the well discovered 23 metres of net hydrocarbons bearing pay in the Omicron objectives.
The sidetrack found 1.4 metres of net pay in the Upper Omicron, overlying 24 metres of high quality reservoir which, unfortunately was found to be water bearing. The main target, the Deep Omicron, intersected high quality thin inter-reservoir units. The reservoir was less well developed than in the original wellbore but the company still logged about ten metres of net pay with porosity of 19 per cent. It failed, however, to recover fluid samples and pressure data from the Deep Omicron.
Analysts became ambivalent about the Sapele wells. Bowlevens acreage offshore Cameroon, we believe, has significant potential, but at this stage it looks like extracting that potential could take longer and be more complicated than perhaps the market was anticipating, said David Farrell, oil analyst at Evolution Securities.
The market was disappointed at what it considered to be an inconclusive set of results and the shares fell 43p to 300p.
By June this year confidence in the shares was restored a bit as the testing proved positive. The Drill Stem testing at Sapele-1 ST was conducted over a 71 metre perforated interval. The interval flowed at a stabilised rate of 2,023 bopd of 39.2 degree API oil and approximately 6.47 million standard feet of associated gas a day (mmscfd) on a 56/64 inch choke, making 3,101 boepd in all. The interval tested at Sapele-1 ST correlates on seismic with the Deep Omicron drilled by the original Sapele-1 well.
But in a real topsy turvey fashion the shares, having motored back up on this news, took another hit in August with the results of the Sapele-2 well. The company said the Sapele-2 test programme achieved a peak flow rate of 2,738 barrels of oil equivalent per day (boepd) including high quality light oil, from the Deep Omicron interval. This was despite compromised well bore and other operational issues.
Bowleven said it put P90 unrisked in--place estimates following the Sapele Deep Omicron discovery at 87 million boe and for the Deep Omicron fairway at a much greater 477 million boe. Based on preliminary development screening 10 to 20 million barrels of recoverable oil at current oil prices could potentially justify a commercial development, Bowleven said in a statement. Oil recovery factors are initially estimated to range between 10 and 30 per cent, it said.
Based on these well results there is plenty of oil and gas in the zones tested, but maybe not as much as analysts and the market were hoping for. The shares fell to around 73.25 p on the well report having been 414.25 p in the past 12 months, although the shares have also been caught up in the general nervousness and turmoil of equity markets generally.
Kevin Hart remained upbeat on the news saying in August that further drilling would be carried out as part of the appraisal plan, despite the mixed reaction to the results. Apart from the share price movement joint venture partner Vitol decided not to participate in a further well. Hart said The Sapele discoveries provide a foundation to Bowlevens strategy of moving resources to reserves on Block MLHP-5. Although the zones are described as deep the well are being drilled in shallow waters of around 30 metres just offshore in the Douala Basin.
Bowleven sole risked the Sapele -3 well after Vitol dropped out. The results seemed to suggest Kevin Harts confidence has been vindicated. The company has said it was delighted to announce the discovery of oil at the Sapele-3 exploration well. Eleven metres of independently assessed net hydrocarbon pay intersected within the upper part of the Deep Omicron interval; up to a further 11 metres net is currently interpreted as having either a high residual hydrocarbon bearing response from the logs. The majority of the reservoir is located in two gross sand packages, exhibiting high net to gross ratios and good quality reservoir. The packages appear to correlate back to earlier Sapele wells.
A clearly delighted Kevin Hart said: The well has now shown that the Deep Omicron interval extends considerably beyond the currently mapped area which has significant implications in terms of both volumetrics and prospectivity on both block MLHP-5 and MLHP-6.
Now we have news of further drilling. The Sapele-3 exploration well has been drilled to total depth (TD) of 4,480 metres. The well found a further 8 metres of net pay intersected in deeper reservoirs, in addition to the 11 metres within the Deep Omicron interval previously announced. The reservoir package in the deeper Palaeocene Epsilon Complex is in the same stratigraphic interval encountered in Sapele-1. Indications from shows and mud log analysis suggest the Epsilon reservoir package is oil bearing. The discovery at the Epsilon interval represents a substantial step-out from Sapaele-1 and extends the known play fairway well beyond the previously mapped area..
Volatility is nothing new in the small caps oil game, of course. Bowlevens shares went up a little on this further drilling news, but are still some way off their peak.

SP activity seemingly indicates sone sort of battle going on. It isn't usual for a SP to be up 12% one day, 9% down the next, followed by another 12% rise. It would appear on the face of it as if someone is trying to force the SP down by either dumping shares or shorting whilst someone else is pushing the stock back up in an aggressive fashion.

One scenario is that a takeover battle has already started with the buyer trying to get the company on the cheap and that attack is being defended in a vigorous manner. If so the SP is going up come what may; if wishful thinking then it's just normal Market forces at work.

Guardian takeover rumour

Started in the FT last week and now in the Guardian, but first mention of Chevron.

LMFAO

Anders, why would you find a Guardian report of such huge amusement?

Oh, I know, you don't like my comments on the SAC ramp thread, figures.

Try growing up, I'll be here long after you and your multiple aliases have disappeared into the distance.

http://www.telegraph.co.uk/finance/markets/8232014/Sunday-Telegraph-share-tips-for-2011.html

LOUISE ARMITSTEAD

BOWLEVEN

After the horrors of BP’s spill, plenty argue that betting on the oil sector’s continuing ascendancy is a foolish way to spend your money.

But regardless of the green energy lobby, oil companies will continue to boom in 2011 – fuelled not least by relentless development in the emerging markets.

BowLeven soared by 316pc last year on the back of new discoveries in Cameroon, but there’s every reason to bet that the spurt has just begun.

The Aim-listed company has so far drilled the edge, not the centre, of its structures and it’s fully financed to fund multiple wells this year thanks in part to a $113m (£74m) fund-raising at the end of 2010. The company’s focus is West African oil and gas deposits, and the company told shareholders at its recent annual meeting it hopes to be able to book reserves in respect of its Cameroon finds as early as 2012.

Above all, in a sector prone to gushers, BowLeven stands out with its boss Kevin Hart – the former finance director of Cairn Energy – both steady and experienced and able to build on two decades in the energy sector as first banker and company director.

Might have hit the bottom now : respudding in Q2, I gather......if confirmation of Sapele links (and it looks like it) the sky's the limit !.

blue sky is all we'll see.,.

It looks promising....I think the curve is turning now....

Not sure yet, rf. Still in down trend atm.

I'm almost convinced that this has to rise...let's look at the drilling results and market cap and they are due to spud again very soon....the trend is about to turn !...

Investec downgrades BowLeven from buy to hold, target price cut from 195p to 94p

Broker Investec has slashed its price target for Africa-focused oil explorer Bowleven (LON:BLVN), saying the company has yet to produce a clear plan to monetise its resource potential.

Investec has cut its target from 195p to 94p and downgraded its stance to hold after a more than 30% rise in the share price over the past month.

Bowleven is focused on Cameroon and Gabon, where it owns six blocks all of which it operates itself. Its overall P50 contingent resource base is 226 million (net).

Investec added that the competent person’s report implies a value of 117p/share and its own de-risked valuation is over 400p/share, but the broker needs to see how and if the current funding situation will allow the company to drill before giving credit.

The company raised funds last year and that has bought it some breathing space, but it is unclear whether the company will be able to commercialise its reserves without outside help, the broker said.

A takeover or an earlier than expected farm-down of MLHP-5, on the Etinde Permit, Cameroon are the main risks to its valuation.

Yabadabadoooo....bought some more this morning.....

Dragon Oil notes the recent movement in Bowleven's share price and confirms that it is in the preliminary stages of exploring a possible offer for all of the issued and to be issued share capital of Bowleven.
This announcement does not constitute an announcement of a firm intention to make an offer under Rule 2.7 of the City Code on Takeovers and Mergers (the "Code"). Accordingly, Dragon Oil would like to emphasise that there can be no certainty that any offer will ultimately be made or the terms or timing on which any such offer would be made.

Got a spread this morning.....

perhaps...160 to 200p takeover....some serious undeveloped assets this Bowleven have...not the time to sell I would think....limit orders triggered perhaps...

BLVN also sitting on cash, which may be an attraction for DGO (approx £119m cash).

I'm guessing somewhere around 160p to 200p...might be more but perhaps that sounds like a fair price...we shall see....

Certainly looking good!