CAMAC Energy Inc. , a U.S.-based energy company engaged in the exploration, development and production of oil and gas, announced that the well intervention operation on the Oyo #5 well, located in the Oyo Field located offshore Nigeria, which commenced in December 2010 to reduce the gas production from the well, has been successfully completed.
The well has been tied back into the FPSO, and further cleanup and data collection to determine optimal flowrate is ongoing. Early results have been encouraging and confirm the reduction in gas production from the well.
About CAMAC Energy Inc.
CAMAC Energy Inc. (NYSE Amex: CAK) is a U.S.-based energy company engaged in the exploration, development and production of oil and gas. The Company focuses on early cash flow and high-return global energy projects and currently has operations in Nigeria and, through its Pacific Asia Petroleum subsidiaries, in China. The Company’s principal assets include interests in the Oyo Oilfield, an offshore oil asset in deepwater Nigeria that started production in December 2009, a 100% interest in the Zijinshan Block gas asset located in the Shanxi Province, China, and the Enhanced Oil Recovery and Production business in Northern China. The Company was founded in 2005 and has offices in Hartsdale, New York, Houston, Texas, Beijing, China, and Lagos, Nigeria.
The Oyo Oilfield is located approximately 75 miles off the Southern Nigerian coast in deep-water (200-500 meters).
CAMAC Energy has an interest in a production sharing contract (“PSC”) covering petroleum operations in the Oyo Oilfield under the Oil Mining Lease 120 issued by the Federal Republic of Nigeria.
Under the PSC, CAMAC Energy has partnered with Nigerian Agip Exploration Ltd (a subsidiary of Italy’s ENI SpA), the Oyo Oilfield’s other interest holder and operating contractor.
The Oyo Oilfield commenced production in December 2009. The initial two subsea production wells are connected to Armada Perdana, a Floating Production Storage and Offloading (FPSO) vessel.
The FPSO has a treatment capacity of 40,000 barrels of liquids per day (bbl/d), with gas treatment and re-injection facilities, and is capable of storing up to 1 million barrels of crude oil. The associated gas will be re-injected into the Oyo field reservoir by a third well to prevent flaring and to maximize oil recovery.
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Source:Camac, January 26, 2011;