Oil Found at Oyo Field in Miocene Zone (Nigeria)
CAMAC Energy Inc. today announced it has been informed by Allied Energy Plc that the Oyo-7 well offshore Nigeria in OML 120 has confirmed the presence of hydrocarbons in the Miocene formation.
This marks the first time a well has been successfully drilled into the Miocene formation of the Oyo oil field. Hydrocarbons were encountered in three intervals totaling approximately 65 feet, as interpreted from the logging while drilling (“LWD”) data.
“This result is very encouraging and will be integrated into ongoing studies to solidify further exploration plans in OML 120 and 121,” said Dr. Kase Lawal, Chairman and CEO of CAMAC Energy. “The Miocene is the most prolific producing zone offshore Nigeria, and the presence of these hydrocarbons significantly de-risks the large Miocene prospects in our blocks.”
The Oyo-7 well has successfully achieved its primary and secondary objectives, and will now be temporarily suspended. Drilling of the horizontal section and completion activities are expected to commence in the first quarter of 2014. It is currently anticipated that Oyo-7 will begin production mid-2014 at an initial production rate of 7,000 barrels of oil per day.
Third Quarter 2013 Results
CAMAC Energy also announced today financial and operating results for the three months ended September 30, 2013.
CAMAC Energy reported revenues of $3.5 million for the three months ended September 30, 2013 compared to $7.9 million for the three months ended September 30, 2012. This decrease in revenues was primarily due to one lifting during the third quarter 2013 compared to two liftings during the same period last year. The Company continues to realize a premium to Brent Crude pricing due to the high-quality oil produced from the Oyo Field offshore Nigeria. The average realized price for the third quarter was $112.09 per barrel.
Crude oil production averaged 2,228 Bopd gross, 314 Bopd net to the Company, for the three months ended September 30, 2013 as compared to production of 2,641 Bopd gross, 388 Bopd net to the Company, for the same period last year.
The Company reported a net loss of $2.7 million, or ($0.02) per diluted share, from continuing operations for the three months ended September 30, 2013, compared to a net loss of $2.0 million, or ($0.01) per diluted share, from continuing operations for the three months ended September 30, 2012.
Press Release, November 13, 2013