4th Jan 2006 07:00
BowLeven Plc04 January 2006 04 January 2006 BowLeven Plc ('BowLeven' or 'the Company') Drilling and Business Update Bachuo - 1, Cameroon. BowLeven announces that, following the initial test data, it has been decided tosuspend activities at its Bachuo-1 exploration well in Block MLHP-7, offshore Cameroon. The Bachuo-1 well was spudded on October 29 2005 and was drilled to a depth of10,353 feet. The well targeted what was interpreted as a sequence of stackedand amalgamated debris flow reservoirs of Upper Isongo age. These were predictedto contain gas and gas condensates. Gas was encountered while drilling in anumber of zones and logging indicated about 300 feet of apparent gas bearingsection with low permeabilities. A production test was conducted over one ofthe zones, but this failed to produce gas. Following the results of this test, operations have been suspended. There willbe a full review of the test and drilling results before any final decision ismade to either abandon the well or re-enter it during a future drillingcampaign. A further announcement detailing this decision will be made in duecourse. Philip Rhind, BowLeven CEO, said "We are obviously disappointed that theproduction test failed to produce gas. The results from this well have nevertheless provided important geotechnical data to help us further evaluate what is still, we believe, a highly prospective block." "We also have a busy schedule of 3D seismic acquisition beginning on Blocks MLHP5 and 6 early this year, to be followed by a drilling programme. We havesecured a drilling rig for 4 wells commencing in late 2006." The Company also announces that it has been served with a claim by AddaxPetroleum NV ("Addax") seeking repayment of a non refundable deposit of US$3million. This sum was paid as part of an agreement under which a farm-inarrangement was contemplated. Addax subsequently indicated that it would notproceed with this arrangement. The Directors, having taken legal advice, intendto defend the claim. Currently, the Company's cash resources that are available to fund its ongoingwork programme and operations amounts to approximately £48 million. For further information contact: Philip Rhind, Chief Executive, BowLeven Plc, 0131 260 5100 Adam Westcott, Noble & Company Limited, 0131 225 9677 Neil Bennett, Maitland, 020 7379 5151 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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