Bowleven overcomes delays to start drilling first onshore well in Cameroon

BOWLEVEN has started drilling its first onshore well in Cameroon after experiencing delays in the West African country.

The Edinburgh-based oil and gas company said drilling operations have commenced on the Zingana well on the Bomono Permit, about six months later than originally anticipated.

Zingana is the first well in an initial programme of two that Bowleven plans to complete onshore in Cameroon. It has focused activity in the waters off the country to date.

The company has noted there have been numerous oil seeps on the Bomono permit but the area is largely unexplored by modern exploration methods. But Bowleven has faced several complications on Bomono, where it originally hoped to start drilling towards the end of 2014.

In January the company said work on Bomono had been delayed by minor logistical issues.

In March Bowleven noted certain mechanical and control issues needed to be addressed by the drilling contractor.

Yesterday, the company said: “These issues related to the top drive and the mud pumping system and have now been resolved.”

Bowleven said the location of the second well, Moambe, has been prepared for drilling.

The bulk of the cost of the wells will be paid by privately-owned Africa Fortesa Corp in exchange for a 20 per cent stake in Bomono, under a deal agreed in June 2014.

Bowleven’s share is expected to total $13m (£8.5m) to $15m.

The company could fund this by drawing on the proceeds of the $250m stake sale in Cameroon which it also agreed in June last year. This left Bowleven sitting on a big cash pile it could use to capitalise on opportunities created by the fall in the crude price since the deal was struck.

The deal to sell interests in the Etinde permit to Cameroon’s New Age and Russia’s Lukoil was completed in March.

The partners extended the completion deadline three times amid delays in receiving the required approvals from Cameroon’s President Biya and authorities in the country.