BOWLEVEN said yesterday it was well funded to undertake the extensive activities planned across its portfolio this year.
The Scottish oil and gas explorer focused on west Africa – whose chief executive is former Ellon Academy pupil Kevin Hart – also announced it a had cash balance of about £68million at the end of 2009.
In an operational update in advance of first-half results on March 29, Bowleven said it had recently signed a letter of intent for a rig for its planned drilling campaign on the Etinde permit offshore Cameroon. Completion of the legal documentation is expected soon for a drilling programme due to start in April or May.
Assignment approval for its previously announced Etinde farm-out to Vitol E&P is also anticipated shortly after a recommendation from Cameroon government ministers. In addition, an exploration well on the Epaemeno permit onshore Gabon is also budgeted in 2010.
Bowleven said its funding position at the end of last year, coupled with an additional £62million expected from the initial phase of the Vitol deal, meant the group was in good financial shape heading into a busy spell. Mr Hart said: “With a rig now earmarked for our drilling activities on Etinde, we are on track to deliver the intensive work programme planned on the acreage in 2010.
“We look forward with excitement to what is shaping up to be the busiest year in Bowleven’s history.”
The company holds, through subsidiary EurOil, a 100% stake in Etinde.
The asset gives the firm about 900 square miles of exploration acreage. Four wells have been drilled in the area since 2007, all of which were successful.
Oil prices rose yesterday as the market weighed a weaker dollar and Wall Street’s higher open against continuing signs of weak demand. Still, prices were near a one-month low after having fallen by almost $10 a barrel over the past two weeks since hitting a 15-month peak of $83.95 on January 11.
In New York, US crude for March delivery settled up 72 cents at $75.26 a barrel while, in London, Brent gained 86 cents to $73.69.