Erin Energy Records Operational Progress Across Asset Portfolio | Independent Newspapers Limited
Newsletter subscribe

Business, Power

Erin Energy Records Operational Progress Across Asset Portfolio

Posted: Sep 29, 2015 at 12:00 am   /   by   /   comments (0)

Erin Energy Corporation has said that it has continued to make steady progress across its asset portfolio.

The Chairman and Chief Executive Officer of the company, Kase Lawal, who made this disclosure, said in a recent update of the company’s current operations that: “With the success of the Oyo-8 well and impending tie-in of the Oyo-7 well, we are very pleased with our current operations in Nigeria and the progression of our work program across our entire asset portfolio. The operational team’s advancement of the work program in Ghana is remarkable and we are excited that Ghana is looking to be a very near-term source of significant value for our company. We continue to advance both the exploration and development programs on our assets; we are building on our success and are well positioned to continue growth in 2015.”

He said in Nigeria, the company is continuing the completion operations on the Oyo-7 well, noting that production from the well is expected to commence by mid-June.

He said the Oyo-8 well’s performance has been exceptional, and the well is now producing at a stabilized rate of more than 7,200 barrels of oil per day, adding that the company has begun discussions on rig availability for its planned drilling campaign, consisting of Erin Energy’s first exploration well in the Miocene formation later this year, the Oyo-9 development well in 1H 2016, and a water injection well to further enhance production from the Oyo field.

He said Erin Energy has four drill-ready exploration prospects, with combined recoverable P50 resources of approximately three billion barrels of oil equivalent (83% oil) at the core of its near-term offshore exploration program in Nigeria.

In Ghana, he said the company has completed the static and dynamic modeling of the three previously discovered oil fields in its Expanded Shallow Water Tano block, which has resulted in sizeable oil and gas in-place volumes. “Erin Energy continues to work with an independent reservoir engineering firm and is creating development scenarios for the block and running preliminary economics on the volumes,” he said, adding that based on the initial results, the company expects to declare commerciality very soon.

He also noted that Erin Energy recently met with the government of The Gambia to review the Company’s work plan, which includes a 3D seismic acquisition this year in blocks A2 and A5 and the drilling of an exploration well in early 2018, noting that permits had been granted, and the company is expected to commence the 3D seismic acquisition in early July this year.

“In light of recent offshore Senegal oil discoveries, which are on-trend with the Company’s A2 block, Erin Energy continues to receive interest from potential partners and is in advanced discussions with potential farminees,” he said.

On its operations in Kenya, Lawal said the company has completed preliminary interpretation of the seismic data acquired on blocks L1b and L16 and has identified several promising leads, explaining that based on the results of the data interpretation, Erin Energy has met with the government of Kenya and has requested approval to move into the first exploration extension period on both blocks.