Progress continues across asset portfolio
HOUSTON - Tuesday, June 9th 2015 [ME NewsWire]
(BUSINESS WIRE)-- Erin Energy Corporation (“Erin Energy” or the “Company”) (NYSE MKT: ERN) today provided an update of its current operations.
Kase Lawal, Chairman and Chief Executive Officer commented: “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.”
The Company is continuing the completion operations on the Oyo-7 well, and production from the well is expected to commence by mid-June.
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. Further, 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. At the core of its near-term offshore exploration program in Nigeria, Erin Energy has four drill-ready exploration prospects, with combined recoverable P50 resources of approximately three billion barrels of oil equivalent (83% oil).
The Company has completed the static and dynamic modelling 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. Based on these initial results, the Company expects to declare commerciality no later than September 2015.
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. Permits have been granted, and the Company expects to commence the 3D seismic acquisition in early July 2015.
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.
The Company has completed preliminary interpretation of the seismic data acquired on blocks L1b and L16 and has identified several promising leads. 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.
Erin Energy Corporation is an independent oil and gas exploration and production company focused on energy resources in sub-Saharan Africa. Its asset portfolio consists of 9 licenses across 4 countries covering an area of 43,000 square kilometers (10 million acres), including current production and other exploration projects offshore Nigeria, as well as exploration licenses offshore Ghana, Kenya and Gambia, and onshore Kenya. Erin Energy is headquartered in Houston, Texas, and is listed on the New York and Johannesburg Stock Exchanges under the ticker symbol ERN. More information about Erin Energy can be found at www.erinenergy.com.
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, concerning activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, they involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect.
The Company’s actual results could differ materially from those anticipated or implied in these forward-looking statements due to a variety of factors, including the Company’s ability to successfully finance, drill, produce and/or develop the wells and prospects identified in this release, and risks and other risk factors discussed in the Company’s periodic reports filed with the Securities and Exchange Commission. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. You should not place undue reliance on forward-looking statements, which speak only as of their respective dates. The Company undertakes no duty to update these forward-looking statements.
This press release refers to prospective resources, including recoverable resources and resources in place. The Securities and Exchange Commission (“SEC”) permits oil and gas companies, in their filings with the SEC, to disclose only “reserves,” as that term is defined under SEC rules. Prospective resources are those quantities of petroleum estimated, as at a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Investors should not assume there will be any discovery associated with prospective resources, or that any discovery will be economically drillable or ever be upgraded into reserves.
Erin Energy Corporation
Chris Heath, +1 713-797-2945
Lionel McBee, +1 713-797-2960