Erin Energy is expecting to double its production by 6000-7000 b/d with help from the Oyo field offshore Nigeria, as the company plans to accelerate drilling in the area.
 |
|
The Pacific Bora, from Pacific Drilling. |
Erin currently produces about 6000 b/d, however, startup at the Oyo-9 development well could see that number more than double.
Drilling at Oyo-9 is scheduled to start in July with Pacific Drilling’s Pacific Bora drillship, and be completed by the end of the year.
According to Erin, Oyo-9 has the potential to increase Oyo field production by 6000-7000 b/d, which alone would double the company’s current production. Coincidental with the completion of Oyo-9, Erin Energy will also tieback to its FPSO the Oyo-7 well, which should add about 1200 b/d.
Erin says it is in discussions with Pacific Drilling regarding a possible extension to the contract to drill one or two wells in the prolific Miocene geological zone located in OML 120.
OML 120 contains the Oyo Field which is about 75km (46mi) from the coast in 20-500m water depth.
“We are pleased with the progress in our drilling operations and the possibility to more than double the company's current production,” says Femi Ayoade, Erin Energy CEO. “Additionally, we believe our greatest shareholder value creation opportunities are in our Miocene exploration prospects, where we are working to accelerate the drilling in OML 120 and 121.”
“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,” says Frank C. Ingriselli, Erin Energy chairman.
Production at the Oyo field started in December 2009. Wells at the field are connected to the Armada Perdana FPSO, which has a capacity of 40,000 b/d with gas treatment and re-injection facilities, and can store up to 1.1 MMbbl of crude oil. The associated gas is re-injected into the Oyo field reservoir to maximize oil recovery.
According to Erin, the company’s geoscience and engineering team recently identified several geologic prospects beneath current production and in the surrounding area on the blocks.
Subscribe
