BowLeven signs Africa dealMARK WILLIAMSON December 14 2007...

BowLeven signs Africa dealMARK WILLIAMSON December 14 2007
CommentBowLeven, the oil and gas independent focused on West Africa, has been awarded additional acreage in Cameroon and given more time to explore a key licence.

The Edinburgh-based firm said it had signed a production-sharing contract for a permit covering roughly 2328 square kilometres of territory onshore in an area which directors believe has "significant oil potential". The area contains numerous active seeps indicating the presence of crude oil but has not been explored since the 1980s.

The last wells drilled in the 1950s proved there was gas and condensate within the permit, without addressing the oil potential.

advertisementIn another apparent sign of good relations between BowLeven and the Cameroon authorities, the firm has received confirmation that the exploration period of the Etinde Permit offshore has been extended by 18 months to September 2009.

This permit covers three blocks in which BowLeven has been working on a number of encouraging prospects.

BowLeven also confirmed it had received clearance from the government of Gabon for the farm-out of a 50% stake in the onshore Epaemeno production-sharing contract to Addax Petroleum, which was announced in April.

The firm has moved to try to boost its following among investors by appointing Merrill Lynch International to act as joint broker with Hoare Govett.

BowLeven shares firmed 4.5p to 318.5p on the Alternative Investment Market.