CAMAC working to bring two Oyo wells online
- Business & Finance
CAMAC Energy Inc. has announced it will bring online Oyo-7 and Oyo-8 wells, off Nigeria, by year-end and in early 2015, respectively.
Oyo-8 was successfully drilled to a total depth of 6,059 feet, and encountered four new oil and gas reservoirs with a total gross hydrocarbon thickness of 112 feet, based on results from the logging-while-drilling data, reservoir pressure measurement, and reservoir fluid sampling.
Both Oyo-7 and Oyo-8 have now been successfully drilled, the flowlines and other subsea equipment from Oyo-5 and Oyo-6 have been recovered, and successfully installed and tested on the Oyo-7 and Oyo-8 wells. The Energy Searcher drillship is currently plugging and abandoning Oyo-5 and Oyo-6, and will then drill the horizontals to complete Oyo-7 and Oyo-8. The company expects to bring the first of these two development wells online by year-end, and the second in early 2015.
In addition to these development wells, the company has high-graded four of the prospects in OMLs 120 and 121 to drill-ready status, which target a combined 2,377 million barrels of oil, P50 recoverable resources. The company will have the ability to drill the first of these prospects out of internal cash flow, generated by the two new development wells, and is also at the early stages of marketing these prospects to potential partners. CAMAC Energy has engaged Stellar Energy Advisors in London to market these four exploration prospects to potential partners and expects to announce the results of this process during the first half of 2015.
CAMAC Energy has also announced its financial results for the three months ended September 30, 2014. For the third quarter of 2014, revenues were $19.0 million, on average net daily production of approximately 800 barrels of oil, net of royalties. Revenue on a per barrel basis was $100.85. The company reported a net loss of $42.2 million for the third quarter of 2014, or $0.03 per basic and diluted share. Cash and cash equivalents at September 30, 2014 was $54.3 million.