Erin Energy Corporation has said drilling operations for the Oyo-9 development well are planned to commence next month in a bid to double its current production.
This follows the signing of a $15m drilling contract with Pacific Drilling, in March, for the use of its sixth-generation double-hulled drill ship, the Pacific Bora rig.
The company, in its drilling and production update, said the operations would be completed by the end of the year, pursuant to the drilling contract with Pacific Drilling.
Erin Energy currently produces approximately 6,000 barrels of oil per day, and Oyo-9 has the potential to increase Oyo field production by 6,000 to 7,000 barrels of oil per day, which alone would double the company’s current production, according to a statement on its website.
It said that coincidental with the completion of Oyo-9, the company would also tie back to its Floating Production Storage and Offloading vessel, which should add approximately 1,200bopd.
The company said it was also discussing a possible extension to the contract with Pacific Drilling, depending on availability of funds, to drill one or two wells in the productive Miocene geological zone located in Oil Mining Lease 120.
According to the firm, the drilling rig under contract with Pacific Drilling is the Pacific Bora, which it describes as a highly efficient sixth-generation double-hulled drillship.
The Chief Executive Officer, Erin Energy, Mr. Femi Ayoade, was quoted as saying, “We are pleased with the progress in our drilling operations and the possibility to more than double the company’s current production.
“Additionally, we believe our greatest shareholder value creation opportunities are in our Miocene exploration prospects, where we are working to accelerate the drilling in OMLs 120 and 121. Solid progress is also being made to restructure the company’s debt, including the reduction in our accounts payable.”
The Chairman, Erin Energy, Frank Ingriselli, was also quoted as saying, “When I was elected to the Board of Directors a few weeks ago, I commented on the world-class assets in Erin Energy’s portfolio and our plans to maximise value from those assets and the drilling of these Oyo wells will significantly add value to our portfolio.
“We plan to commence non-deal roadshows as soon as possible to communicate the company’s story and opportunities to Wall Street so that our share price reflects the true value of our company, as we execute on our development and exploration plans to add hundreds of millions of barrels of additional reserves.”
The Oyo field, which is located in OML 120, commenced production in December 2009.
Erin Energy, an independent oil and gas exploration and production company focused on energy resources in sub-Saharan Africa, is listed on the New York and Johannesburg Stock Exchanges.
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