by Phil Doel
16. July 2010 11:04
Oil exploration and production company Bowleven has announced the results of appraisal drilling off the coast of Cameroon. The results from its appraisal well I-3 indicate a better than expected outcome as they found light oil in addition to the expected gas condensate. More information on this is expected in the next month or so after a series of flow tests. These results serve to underpin the current share price but we believe their is further significant upside potential from elsewhere within the Cameroon operations with news also coming from appraisal well I-F and the ‘Wildcat’ Sapele-1 oil exploration well in the near future.
Bowleven remains a strong proposition in both the F&C UK Opportunities and F&C UK Equity Funds.
These results also underpin our long held preference for the growth potential of the E&P stocks over the majors in the oil sector.
The appointment of new CEO Guy Berruyer at Sage was a key part of the investment thesis behind its inclusion in the UK Opportunities portfolio. Though an inside appointment he does have a good deal of previous experience at other companies. We believe that the change, which becomes effective on 1 October, will see a focus on margin improvement and will mean better growth prospects.
