CAMAC Energy Inc. announced an update on the Company’s operations in West and East Africa, including Nigeria, Ghana, and Kenya.
The Northern Offshore Energy Searcher drillship is currently located offshore Cameroon, where it is awaiting final clearance by the Nigerian Department of Petroleum Resources (“DPR”) to enter Nigeria and commence drilling operations at the Oyo Field. The DPR has completed its inspection, and is expected to issue final clearance imminently. The drilling rig is anticipated to arrive at the Oyo Field by the end of April.
In order to optimize drilling, completion, and production activities, current plans are to spud Oyo-8 mid-May, with well-hookup and first production expected in October. The drilling rig will then move to complete and hook-up Oyo-7, with first production expected in November. Both wells continue to be on track to commence production this year, enabling CAMAC Energy to exit 2014 at an estimated production rate of 14,000 barrels of oil per day.
In addition to the development wells offshore Nigeria, the Company has identified 10 exploration prospects and 12 leads, and has currently high-graded three prospects containing unrisked prospective resources in excess of 200 MMBO each. Current efforts are focused on determining the first exploration well location to be drilled in 2015.
CAMAC Energy recently received parliamentary ratification of its Petroleum Agreement relating to the Expanded Shallow Water Tano Block in Ghana. The Company has been named technical operator and will hold a 30% interest in the Block. The Block contains three discovered fields, and the work program requires the partners to determine, within nine months, the economic viability of developing the discovered fields. A leading worldwide independent petroleum consulting firm has been identified to assist with the evaluation. Activities will include evaluating existing 3D seismic data, and geological and well data.
Exploration activities are continuing in the Lamu Basin on Blocks L1B and L16 onshore, and on Blocks L27 and L28 offshore.
L1B/L16 Onshore
Work is focused on drilling two exploration wells in 2015/2016: one in Block L1B, and one in Block L16.
Current activities onshore Block L1B are targeting net unrisked prospective resources of 900 MMBO from five leads.
L27/L28 Offshore
Evaluations are being directed towards drilling one exploration well in either Block L27 or Block L28 in 2016/2017.
Segun Omidele, Senior Vice President of Exploration and Production , commented, “CAMAC Energy’s continued focus is to improve our current production and cash flow, while making solid progress identifying and developing our world-class, high-impact exploration prospects and leads. We are confident about our current operational status, and look forward to ramping up net daily production from 2,000 barrels of oil today to 14,000 barrels of oil by year-end.”