Bowleven: Bomono Well Test Results
Edison | Jan 15, 2016 06:11AM ET
Bomono well test results
Bowleven's (L:BLVN) exploration activities onshore Cameroon have produced positive results. On 8 January, BLVN announced that tests of the shallow gas reservoirs (started in Q415) have given the company enough confidence to “continue to support plans for an initial supply of around 5 to 6 mmscfd of gas for power generation” under a development scheme formulated with Actis and Eneo”. Should this project get the go-ahead after full analysis has been completed, it could mean a relatively low-cost project for Bowleven, which could see near-term initial production. The wells were completed as producers, so re-drilling will not be needed, while the site is very close to the grid with enough land for expansion in time.
Potential for a quick development
As yet we have not heard much about the make-up of the other reservoirs, the existence/extent of associated liquids or other considerations – we expect detail in time. However, for this development from the shallow intervals, the dry gas would mean a cheap, quick process to first production – we expect a Gas Sales Agreement and development planning to be the key focuses in the coming months. Any success in deeper horizons (where liquids may be present) could build on this initial development and liquids should mean increased returns (although potentially taking longer to come on stream).
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