Bowleven plans appraisal wells in Cameroon

Uchenna Izundu
OGJ International Editor

LONDON, Aug. 18 -- Bowleven PLC plans to drill the IF-2 and IF-3 appraisal wells on IF field within the Etinde permit in Cameroon by second quarter 2010.

The field lies on Block 7 and is estimated to hold 53 million bbl of contingent resources, according to a report by TRACS International Consultancy Ltd. Bowleven also will reprocess 3D seismic and acquire 100 sq km of 3D seismic over the IE and IF discoveries.

Bowleven would use a spread-moored floating, production, storage, and offloading vessel to bring the field on stream if the appraisal is successful. First oil could be produced in 2012 through four production wells, (two of which will be completed appraisal wells) and 3 injector wells. Each production well could deliver 10,000 b/d and injectors 15,000 b/d.

The first phase of the field’s development would cost an estimated $106 million. The second phase involves a fuel gas line to Limbe with onshore processing facilities, which will have a capacity of 60,000 b/d of liquids, a water injection capacity of 60,000 b/d, and a gas capacity of 36 MMscfd. The cost of the second phase would hit $209 million.

The work will be done in partnership with its new farm-in partner, Vitol E&P Ltd., Geneva, which will contribute $100 million towards the work program that is expected to finish in 2011.

Under a farm-in agreement signed Aug. 13, Vitol will acquire a 25% interest from Bowleven, reducing its share to 75%. This is subject to approval from the Cameroon government and Bowleven’s shareholders. If the go-ahead is given, it will become effective from July 1.

According to the farm-in agreement, Vitol also has the option to gain another 25% interest by Sep. 30, 2010, in return for funding an additional $100 million gross work program and paying $25 million in cash to the group to progress Etinde activities. If Vitol exercises the option, it will assume operatorship of the permit and Bowleven will become its technical partner with a 50% interest.

The Etinde permit covers three shallow water blocks off Cameroon, spanning parts of the Rio Del Rey and Douala basins, both of which have proven petroleum systems and discovered hydrocarbon resources.

Contact Uchenna Izundu at [email protected].