Analyst / Investor Presentation Interim Results 28 th March 2011 - - PowerPoint PPT Presentation

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Analyst / Investor Presentation Interim Results 28 th March 2011 - - PowerPoint PPT Presentation

Analyst / Investor Presentation Interim Results 28 th March 2011 Disclaimer Important Notice Nothing in this presentation or in any accompanying management discussion of this presentation (the " Presentation ") constitutes, nor is it


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SLIDE 1

Analyst / Investor Presentation Interim Results 28th March 2011

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SLIDE 2

Disclaimer

Important Notice Nothing in this presentation or in any accompanying management discussion of this presentation (the "Presentation") constitutes, nor is it intended to constitute: (i) an invitation or inducement to engage in any investment activity, whether in the United Kingdom or in any other jurisdiction; (ii) any recommendation or advice in respect of the ordinary shares (the "Shares") in Bowleven plc (the "Company"); or (iii) any offer for the sale, purchase or subscription of any Shares. The Shares are not registered under the US Securities Act of 1933 (as amended) (the "Securities Act") and may not be offered, sold or transferred except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any other applicable state securities laws. The Presentation may include statements that are, or may be deemed to be "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "projects", "expects", "intends", "may", "will", "seeks" or

28th March 2011 INTERIM RESULTS PRESENTATION 2

y g gy, g , , p , p j , p , , y , , "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or

  • intentions. These forward-looking statements include all matters that are not historical facts. They include statements regarding the Company's intentions,

beliefs or current expectations concerning, amongst other things, the results of operations, financial conditions, liquidity, prospects, growth and strategies of the Company and its direct and indirect subsidiaries (the “Group”) and the industry in which the Group operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. The Group’s actual results of operations, financial conditions and liquidity, and the development of the industry in which the Group operates, may differ materially from those suggested by the forward-looking statements contained in the Presentation. In addition, even if the Group’s results of operations, financial conditions and liquidity, and the development of the industry in which the Group operates, are consistent with the forward-looking statements contained in the Presentation, those results or developments may not be indicative of results or developments in subsequent periods. In light of those risks, uncertainties and assumptions, the events described in the forward-looking statements in the Presentation may not

  • ccur. Other than in accordance with the Company's obligations under the AIM Rules for Companies, the Company undertakes no obligation to update or

revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. All written and oral forward-looking statements attributable to the Company or to persons acting on the Company's behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in the Presentation.

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  • il & gas

Opening Remarks

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SLIDE 4

Vision & Strategy

Vision “It is our vision to build an African focused exploration and production company which in time becomes renowned for its ability to consistently create and realise material shareholder value through exploration led

  • rganic growth and niche acquisitions.”

28th March 2011 INTERIM RESULTS PRESENTATION 4

  • Strategy focused on creating and realising value through

material exploration success.

  • Seek value adding partnerships as appropriate.
  • Fostering strong external partnerships and in-country

relationships.

  • Strong technical and management teams with successful

track record. Strategy – Regional Focus on West Africa

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SLIDE 5

Company Overview

Two operating areas: Cameroon and Gabon

  • 7 Blocks (5 in Cameroon and 2 in Gabon).
  • 4 offshore shallow water, 3 onshore.
  • 6 operated, 1 non operated.
  • Overall P50 contingent resource base 213 mmboe* (net).
  • Extensive 3D & 2D seismic database; expanded significantly

during 2010 (Bomono & Etinde).

  • Substantial prospect inventory being developed across

portfolio Company Assets

† †

28th March 2011 INTERIM RESULTS PRESENTATION 5

  • Group cash balance $189m at 31 December 2010; additional

$35m pending on EOV disposal.

  • Bowleven (operator) 75% Etinde Permit

† (25% Vitol*).

  • Well placed to fund 2011 work programme; significant financing

flexibility. portfolio.

  • Extensive multi-well drilling campaign ongoing on Etinde.

* Source: Interim Report – Six months to 31 December 2010.

Corporate

† Etinde Permit comprises MLHP 5,6 & 7. *Vitol option exercisable by 31 March 2011 (10% of MLHP-7 only)

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SLIDE 6

Company Overview

Extensive multi-well drilling programme underway in Cameroon

Asset Strategy

  • Exploring the Douala Basin in Cameroon.
  • Including Tertiary and Cretaceous-Turonian plays,
  • ffshore shallow water.
  • To move resources to reserves on Etinde Permit.
  • Appraisal activity on IE and IF; targeting transfer of

>100mmboe (gross).

28th March 2011 INTERIM RESULTS PRESENTATION 6

(g ) Forward Plan

  • Exploration/Appraisal drilling of Tertiary fairways on MLHP-5*.
  • High impact exploration drilling targeting the Douala Basin

Cretaceous prospectivity.

  • Exploration drilling on Bomono and MLHP-6*.
  • Appraisal activity, including drilling, on MLHP-7*.

*Etinde Permit comprises MLHP-5, MLHP-6 and MLHP-7.

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SLIDE 7

2011 Etinde Forward Plan

  • Appraisal of Sapele-1 discoveries.
  • Sapele-1ST and Sapele-2 currently drilling (appraisal of Omicron

fairways).

  • Preparing for testing at Sapele-1ST.
  • Extensive drilling programme planned on Etinde; additional rig

contracted*. Sapele Forward Plan Etinde Indicative 2011 Work Programme

2011

28th March 2011 INTERIM RESULTS PRESENTATION 7

*Sapphire Driller contracted on a 2+1+1 basis. Noble Tommy Craighead rig contract has 2 slots available post recertification (completion expected Q3 2011).

2011 Q1 Q2 Q3 Q4

Sapele-1 well , Sapele-1ST Drilling / Testing

(Noble Tommy Craighead rig)

MLHP-5 Tertiary wells (2) MLHP-5 Cretaceous well MLHP-7 Appraisal well Sapele-2 Drilling

(Sapphire Driller rig)

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  • il & gas

Cameroon Overview

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Cameroon Overview

Relatively underexplored - an emerging oil story

Douala Basin

  • MLHP 5 & 6, OLHP 1 & 2.
  • Onshore and shallow
  • ffshore areas.
  • Highly prospective

acreage.

  • Number of onshore oil

seeps.

Rio del Rey Basin

  • MLHP 7.
  • Shallow offshore area.
  • Highly prospective

acreage within a proven active hydrocarbon system.

  • Tertiary oil and gas-

condensate discoveries.

28th March 2011 INTERIM RESULTS PRESENTATION 9

  • Tertiary and Cretaceous

leads.

  • Onshore early exploration

phase on 2D dataset.

  • Offshore mature

prospects portfolio on 3D dataset.

  • Multi-well drilling

campaign underway - successful Sapele-1 exploration well.

  • Established portfolio of

additional Tertiary prospects.

  • Maturing exploration with

transition into an appraisal/development phase.

Cretaceous Turonian plays accessible in onshore area and shallow waters.

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SLIDE 10

Recent Douala Basin E&P Activity

  • Bowleven acquired ~500km 2D in OLHP-2

(Bomono) during 2010/11.

  • Bowleven 658km² 3D acquired in Etinde

(MLHP-5, 6, and 7) during 2010.

  • Glencore acquired 2D & 3D in Matanda (2010).
  • Noble Energy 3D acquired across Yoyo & EG

blocks to the south of MLHP-5 (2010).

Bomono 2D Acq.

VOG

Matanda (Glencore) seismic acquired

  • 2010. Drilling

anticipated 2011.

Seismic Exploration Drilling

Marine 3D Acq.

28th March 2011 INTERIM RESULTS PRESENTATION 10

*Gross oil and gas volumes interpolated from Noble Energy August presentation of net volumes (Block O 45%, Block I 40%).

  • Bowleven Sapele-1 operations complete.
  • Perenco Mombe-1 operations complete.
  • Perenco Ngata well, expected spud Q2/3 2011.
  • Glencore Matanda wells planned for 2011/12.

Perenco Mombe-1 P&A (2010)

  • Bowleven Sapele-1ST operations commenced.
  • Bowleven Sapele-2 operations commenced
  • Noble Energy Aseng oil project sanctioned;

development drilling commenced.

  • Victoria Oil & Gas Logbaba gas field

development activity underway. Development/Appraisal Activity

Alen (Belinda 2005). 915Bcf & 94mmbbl resources*. Expected start-up end 2013. Aseng (Benita 2007). 552Bcf & 128mmbbl resource*. Estimated start-up mid-2012.

Perenco Ngata Spud Q2/3 2011

Sapele-2 (March 2011) Sapele-1 Sapele-1ST(Feb 2011)

(Sept 2010)

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SLIDE 11

Regional Geology and Play Fairways

D-1r (2007), 25mmscfd, 1400bcpd from 75ft gross Miocene deep-water sands 56bbl/mmscf condensate. Onshore and offshore mixed Tertiary and Cretaceous sourced

  • il seeps.

Cretaceous rocks outcrop at surface within the Bomono Permit. (Sandstone lithologies). Sapele-1 (2010), multiple hydrocarbon columns of gas-condensate, oil and dry gas.

50m

28th March 2011 INTERIM RESULTS PRESENTATION 11

SW NE

100m

Tertiary play fairway Cretaceous play fairway

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SLIDE 12

Lower Omicron

SE

Sapele-1

Shales Shales NW

Tertiary Omicron Play

Calibration of Sapele-1 seismic highlights fairway potential

The Omicron Fairway

(as defined by Sapele-1)

Upper Omicron Omicron Deep Sapele-1ST

28th March 2011 INTERIM RESULTS PRESENTATION 12

  • The Omicron Play recognised across MLHP-5.
  • Successful drilling by Noble on the Belinda target (downdip D-1r equivalent) resulted in a c.20km long gas-condensate field.
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SLIDE 13

Omicron Play Fairway Mapping

MLHP-6 MLHP-5

Upper Omicron Gas Condensate

MLHP 5

Souellaba Lower Omicron Gas Condensate

  • MLHP-5 = c.778km².
  • Area of 3D = 577km² (74% of block).

Omicron Deep Oil Sapele-1ST Sapele-2

  • Tertiary fairways cover majority of MLHP-5.

p Sapele-2

28th March 2011 INTERIM RESULTS PRESENTATION 13

Alen

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SLIDE 14

Sapele-1 & Sapele-1ST

Appraisal of Sapele-1 Tertiary Omicron discoveries

Sapele-1 Update

  • 2 potentially significant discoveries made (Lower and Deep

Omicron).

  • Log, MDT and sample data confirm hydrocarbon columns of

gas, wet gas and oil in high quality sandstone reservoirs.

  • Initial volumetrics (appraisal drilling required and ongoing):

Sapele-1ST Update

Sapele-1† P90 P50 P10 Mean WGIIP bscf* 75 211 595 290 STOIIP mmbbls 65 167 430 217

Sapele-1ST Sapele-1 Sapele-2

28th March 2011 INTERIM RESULTS PRESENTATION 14

Sapele 1ST Update

  • Sidetrack commenced 26th February 2011.
  • Principal objectives to appraise and test the Deep Omicron

discovery interval in Sapele-1 (2km SE of the original well).

  • Planned TD 3682mTVDSS (4761mMD).

Sapele-2 Update

  • Sapele-2 well spudded 17th March 2011.
  • Principal objective is to appraise the Lower and Deep

Omicron fairways (5km SW of Sapele-1).

  • Planned TD 3724mTVDSS.

†Volumes presented as gross figures. *includes NGLs, which comprise condensate and LPGs.

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SLIDE 15

SE

Sapele-1

NW

Cretaceous Play

Sapele-1 confirms presence of oil, condensate & gas in the Cretaceous

The Cretaceous Play

(as defined by Sapele-1)

Sapele-1

N

Cretaceous Amplitude Map (kick interval).

28th March 2011 INTERIM RESULTS PRESENTATION 15

  • Sapele-1 located to target a variety of Cretaceous seismic responses and open the

Cretacous play in the offshore Douala Basin.

  • Sapele-1 encountered good quality reservoir sands, with oil and gas shows.
  • Significant gas kick at 4733m suggests an extensive hydrocarbon column.

Cretaceous Gas Kick

Gas Condensate Oil Dry Gas

Epsilon Complex

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Cretaceous Play Fairway

Sapele-1 (2010), multiple hydrocarbon columns reservoired in the Cretaceous stratigraphy. Gas-condensate, oil and dry gas.

North Matanda

(North Matanda-1X (1980))

Logbaba Field

(Logbaba-101 (1955))

N’Kapa-1

(1958)

  • Previous Cretaceous exploration on margins of the Douala

Basin.

  • Closest Cretaceous reservoired field to Sapele-1 is North

Matanda (gas-condensate, non-producing) at c.40km.

  • Closest Cretaceous reservoired oil shows to Sapele-1 is

N’K d ( 80k ) Regional Cretaceous Discoveries to date

28th March 2011 INTERIM RESULTS PRESENTATION 16

Kribi High fields

(KA-1 (1980))

Sanaga Sud

(SSA-1 (1979))

N’Koudou-1

Shows (1982)

M’Via

(M’Via-1 (1982))

N’Koudou (c.80km).

  • Closest producing Cretaceous reservoired oil & gas fields to

Sapele-1 are on the Kribi High c.105km to the SE.

  • Gas condensate encountered at Epsilon Complex validates

Cretaceous prospectivity; extends play fairway significantly

  • ffshore.

Bowleven Cretaceous Exploration 2011

Oil Oil & Gas Gas & Oil shows Gas

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SLIDE 17

MLHP-6

Initial potential on MLHP-6 revealed

Onshore and offshore mixed Tertiary and Cretaceous sourced

  • il seeps.

Sapele-1 (2010), multiple hydrocarbon columns of gas-condensate, volatile oil,

  • il and dry gas.

IF-1R (2008), oil discovery. IM-1 (Total, 1970). Isongo gas-condensate discovery.

28th March 2011 INTERIM RESULTS PRESENTATION 17

Sapele-1ST (March 2011), to appraise Sapele-1 discoveries IE-3 (2010), multiple hydrocarbon columns of gas-condensate and oil. MLHP-6. Migration focus for hydrocarbons N S

V.E. 7:1 500m 5km

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SLIDE 18

Line acquisition 2010 Existing 2D

Bomono Overview

Commitments Bomono

  • 100% Bowleven.
  • Comprising two blocks covering an area of 2,328km².
  • 5 year first term, expiring December 2012.
  • 285km 2D acquired in Q1 2010 dry season. Further 215km 2D

acquired by end January 2011.

  • 500km 2D seismic data (commitment met).
  • 1 well (drilling anticipated in 2012).

Bomono Geochemical Anomaly Mapping

28th March 2011 INTERIM RESULTS PRESENTATION 18

Asset Overview 1 well (drilling anticipated in 2012).

  • Highly prospective acreage within a proven active hydrocarbon

system.

  • Unique situation to access the prolific West African Turonian play
  • nshore in a combination of structural and stratigraphic traps.
  • Technical evaluation ongoing with initial evaluation highlighting

multiple prospects with individual sizes ranging from 10 to 250mmbbls Mean STOIIP.

  • 500km 2D seismic processing ongoing; Phase 1 completed Q4

2010.

  • Up to 2 wells planned for H1 2012.

Log.105 (VOG) March 2010 test rates 55mmscfd and 20bbl/mmscf

Douala

2011 2012 Q1 Q2 Q3 Q4 Q1

Bomono Activity

Exploration Drilling 2D Seismic processing and

  • ngoing interpretation

Drilling Preparation

10km

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  • il & gas

Resources to Reserves

Cameroon – Etinde

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SLIDE 20

MLHP-5 Mean Unrisked Discovered Resource

Etinde Resource (Mean Unrisked Gross Volumes In Place)†

Resources to Reserves

MHLP-7 Mean Unrisked Resource (IE & IF Only) Dry GIIP (bcf) Wet GIIP* (bcf) NGL‡ (mmbbl) STOIIP (mmbbl) Isongo E Field* 80 408 95 7 Isongo F Discovery 225 Total Discovered Resource† 80 408 95 232

MLHP 7 MLHP 6 MLHP 5

28th March 2011 INTERIM RESULTS PRESENTATION 20

Dry GIIP (bcf) Wet GIIP* (bcf) STOIIP (mmbbl) Sapele-1 Discovery 290 217 D-1R Discovery 72 Total Discovered Resource† 362 217

  • Updates are anticipated as planned appraisal activity is completed.
  • MLHP-5 resource based on initial Sapele-1 volumes.
  • A significant contingent resource upside remains for Etinde and

Bomono.

†Volumes presented as gross figures. *includes NGLs, which comprise condensate and LPGs.

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SLIDE 21

Initial Post IE-3 Reservoir Modelling

MLHP 7 Appraisal Plan Update

Resources to Reserves

  • IE-3 appraisal drilled mid July 2010 encountered 7 hydrocarbon

bearing zones; tested (5 zones) August 2010 with a cumulative maximum flow rate of 22,909 boepd*.

  • High quality gas-condensate (CGR 262 bbl/mmscf) and oil (36

to 43°API) encountered on IE-3 test; discovery of oil highlights additional potential of the IE Field area and acreage.

  • IE static reservoir model built; dynamic model in progress.

IE Activity

ID-1 IE-2z IE-1 IE-3 IF-1R

28th March 2011 INTERIM RESULTS PRESENTATION 21

*Measured flow rates per interval ranged from 845 to 11,778 boepd with a cumulative maximum rate of 14,576 bpd of liquids and >50 mmscfd of gas (total 22,909 boepd).

IF Activity

  • 3D marine seismic has been acquired over IF field (IF Multi-

Azimuthal 3D 131km²) to support appraisal and development activities; processing complete with results received Q1 2011.

  • Drilling planning will consider the new 3D seismic data

interpretation.

  • Development 3D (4C OBC) being considered.
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SLIDE 22

IE

Concept: Combined Phased IE & IF FPSO Synergised Development

Limbe

Minimum Facilities Platform Dynamic Flexible Production Riser and FPSO Spread Moored

28th March 2011 INTERIM RESULTS PRESENTATION 22

Riser Base

Shuttle Tanker Flexible Multiphase Production Flowlines

IF

  • Concept optimisation post IE-3

appraisal well.

  • Single FPSO for both IE and IF fields.
  • Potential phased development.
  • Cost reductions achieved through

development synergies.

Concept Assumptions (gross) Total Liquids Recovery >100 mmbbls Total Liquids Production >40 mbpd Capex $300-600 million FPSO day rate ~$100-200,000 Total Opex p.a. $50-90 million

Potential synergy with MLHP-5.

“Tarpon” type Wellhead structure Umbilical

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  • il & gas

Asset Overview

Gabon - Epaemeno

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Epaemeno Overview

Licence Summary

  • 50% Bowleven, 50% Addax (operator).
  • Second exploration term expiry February 2012.
  • 1 well with 50% relinquishment at the end of the second term.
  • Optional third exploration term of three years.

Dentale Prospects Omko-1 (20MMbbl) Rembo Kotto (60MMbbl)

Dentale Basin

28th March 2011 INTERIM RESULTS PRESENTATION 24

Technical Overview

  • Sub-salt fields and discoveries to the east and south of the block.
  • Technical evaluation and prospect inventory complete and

highlights a number of significant prospects on the margins of the Dentale Sub-basin.

  • Prospect volumetric range 10 to 350mmbbls mean STOIIP

consistent with field sizes in the region.

  • Operator planning for drilling early 2012.

2011 2012 Q1 Q2 Q3 Q4 Q1

Epaemeno Activity

Technical preparation ahead of 2011 dry season. Site Prep EPA Well

Tsiengui (145MMbbl) Koula (75MMbbl) Obangue (55MMbbl) Onal (180MMbbl)

2P STOIIP source: IHS Energy

Assewe (18MMbbl)

Topo Graben

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SLIDE 25
  • il & gas

Financial Overview

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Interim Results Summary – six months to 31 December 2010

  • Loss of $15.7 million in period (H1 2009: profit of $1.0million).
  • Foreign exchange loss of $8.3 million (H1 2009: foreign

exchange gain of $7.7 million); due to foreign exchange movements on intra-group funding under IFRS.

  • Net assets of $515 million at 31 December 2010.
  • Majority of spend on Etinde in period was covered by the $100m

28th March 2011 INTERIM RESULTS PRESENTATION 26

Vitol carry. $16 million cash invested in oil and gas activities.

  • On 26 November 2010, the Company issued 22 million ordinary

shares at a price of £3.27 per share with net proceeds of $112 million.

  • Net cash resources of $189 million at 31 December 2010.
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SLIDE 27

Funding Overview

  • Cash $189 million at 31 December 2010.
  • Vitol option over MLHP-7, for $50 million carry (gross).
  • Farm-out opportunities when appropriate.
  • Moving from resources to reserves; access to debt finance.
  • Proceeds pending from EOV disposal (~$35m).

Significant financing flexibility.

28th March 2011 INTERIM RESULTS PRESENTATION 27

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SLIDE 28
  • Cash resources of approx $175m following Sapele-1.
  • Pending proceeds from EOV circa $35m.
  • Total cash resources of $210m.

Principal 2011 Work Programme Expenditure

Cash Resources 2011 indicative Etinde drilling costs*

  • Tertiary side track: $20m - $22m; net cost ($15m - $17m).

T ti ll $31 $34 t t ($23 $26 )

28th March 2011 INTERIM RESULTS PRESENTATION 28

  • Tertiary well: $31m - $34m; net cost ($23m - $26m).
  • Cretaceous well: $43m - $46m; net cost ($32m - $35m).
  • Overall costs dependent on specific well programme.

*Well costs inclusive of drilling costs, drilling team, site surveys and well insurance, but exclude testing.

Funded for current drilling programme

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  • il & gas

Closing Remarks

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SLIDE 30
  • Further test exploration potential of Douala Basin, Cameroon.
  • Move discovered hydrocarbons from resources to reserves.

Closing Remarks

Objectives

  • Completion of Sapele-1ST and Sapele-2 wells.

2011 Outlook

28th March 2011 INTERIM RESULTS PRESENTATION 30

  • Further exploration/appraisal wells targeting Douala Basin

prospectivity (Tertiary and Cretaceous).

  • Identification of leads and prospects on MLHP-6 and Bomono

post recent seismic (2012 drilling).

  • Further appraisal activity on block MLHP-7.
  • Forward programme will evolve as drilling activity progresses.
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SLIDE 31
  • il & gas

Principal Contact: Kerry Crawford Tel: +44 131 524 5678 Kevin Hart – Tel: +44 131 524 5678 John Brown – Tel: +44 131 524 5678 kerry.crawford@bowleven.com www.bowleven.com Bowleven Plc. 1 North St Andrew Lane, Edinburgh, EH2 1HX, United Kingdom. y @