Broker snap: Matrix pleased with Bowleven's test results

9th Jun 2011 12:58

Matrix has said that the Bowleven's test results for the Sapele-1ST (side-track) well were better than expected in light of pre-test expectations, and maintains its 'buy' rating and 390p target price.The well, located in the Douala Basin, offshore Cameroon, was drilled to a true vertical depth of 3,634m in water depths of around 24m, and the interval flowed at a stabilised rate of 2,023 barrels of oil per day. The group said that high quality oil was produced at 39.2 degree API (measure for the relative density of petroleum liquids), similar to that encountered at the original Sapele-1 well. "Considering the way the reservoir interval was presented post drilling and the market view of it, this is a good result, we believe," said analyst Charlie Sharp.---BC