CAMAC Delayed by Oil Leaks at Oyo

CAMAC Energy Inc. has delivered an update on Company’s operations in West and East Africa, including Nigeria, Ghana, Kenya, and Gambia.

Nigeria
Oyo Offshore Installation
Offshore installation campaign of the Company’s Oyo field expansion project using the Normand Pacific installation vessel started on September 9, 2014 and consists of the recovery and relocation of umbilicals and flexible flowlines. This offshore installation work will be completed by the first week of October to allow the recently drilled Oyo-7 and Oyo-8 wells to be tied back to the floating production, storage, and offloading vessel Armada Perdana.

Oyo-8 Well
The Company has temporarily halted drilling on the Energy Searcher drillship, which is drilling the horizontal portion of the Oyo-8 well in the Oyo field. This was due to leaks in some control system hoses of the well’s blow out preventer. Replacement hoses have been ordered and are en route to the drilling site. The Company expects to resume drilling operations within two weeks, while the current offshore installation work continues. As a result of the leaks in the hoses, CAMAC Energy expects the production from the Oyo-8 well in December of 2014, while the Oyo-7 well will now come on production in January 2015.

Ghana
CAMAC Energy is advancing its work program in the Shallow Water Tano Block, in which the Company holds a 30% interest, and is technical operator. The Block contains three discovered fields, and the work program requires the partners to determine the economic viability of developing the three fields within 9 months. All existing 3D seismic data, along with all geological and well data, have been obtained by the Company, from the Ghana National Petroleum Corporation and initial evaluation has commenced.

Kenya
Following the award of the contracts for the 2D seismic in blocks L1b and L16 in Kenya, BGP has started the initial field equipment mobilization and shooting of seismic is expected within the next four weeks. Mobilization for L16 is expected in Q4 2014. The processing of the recently acquired 2D data on L27 and L28 has now been completed and the processed data delivered to the Company and initial interpretation of the data has begun.

Gambia
The Company has received a regional geological and geophysical study report, which it commissioned from RPS Group Plc. The results are encouraging with respect to the hydrocarbon potential of CAMAC Energy’s A2 and A5 offshore blocks. The Company now plans to further evaluate the legacy 2D seismic data in its possession and decide on the scope of a 3D seismic acquisition program.

Press Release, September 15, 2014