Bowleven launches next phase of work off Cameroon coast

Earlier this month, the Aim-listed company, led by chief executive Kevin Hart, reported that it may have encountered significant hydrocarbons at its Sapele-1 exploration well but drilling had been halted due to a rapid influx of high pressure gas.

A sidetrack well is now being drilled to appraise the Deep Omicron oil discovery to a depth of some 3,682m with the work expected to take around 40 to 50 days. The company said it would also "spud" another well next month after contracting a rig.

Shares in the company, which has seen its market value double to more than 700 million in recent months, dipped 3.75p to 331.75p.

Meanwhile shares in Aberdeenshire-based Xcite Energy also fell yesterday after it said it hoped to complete an updated reserves report on its Bentley field in the North Sea by the end of March but added it will "take the time necessary to maximise the value of the report".

Last week the company said it had received a 5m investment from American group Yorkville Advisors to fund production.

In recent months Aim-quoted Xcite has enjoyed a series of positive drilling results from the field - the company's sole asset - pushing shares up more than ten-fold.

In December, the explorer, which is also listed on the Toronto stock exchange, revealed that the results from a flow test on its well demonstrated the commercial viability of the field and a drilling contract has since been signed. A rig is currently being built to prove the field's reserves and then start production and is expected to be available during the final quarter of 2011 with the first oil expected to flow in early 2012.

Shares in the company fell 5.6 per cent, or 19.5p, to 327p.