Camac Buys Production Systems for Oyo Well in Nigeria

Camac Buys Production Systems for Oyo Well in Nigeria

CAMAC Energy Inc. today announced that Allied Energy PLC (“Allied”), an affiliate of the Company’s largest shareholder and the operator of its Nigerian deep water blocks, OML 120 and OML 121, has contracted Wellstream International Limited (“Wellstream”) to design, engineer, and manufacture the production flowline and production riser for the completion of the Oyo #7 well currently scheduled to spud in the first quarter of 2013.

Wellstream, a wholly-owned subsidiary of GE Oil & Gas, operates manufacturing facilities in Newcastle, United Kingdom and Niteroi, Brazil and specializes in the engineering and manufacture of high-quality flexible risers and flowline products for oil and gas transportation in the subsea production industry. Wellstream is scheduled to deliver the 3,495 meters of six inch production flowline and 1,105 meters of six inch production riser to the Oyo field in July 2013, where it will be used to tie the production from Oyo #7 to the floating production, storage and offloading unit. Allied also has an option to purchase and receive a duplicate set of materials for its follow up production well, Oyo #8, by September 2013.

Allied has also engaged the subsea engineering firm, Deep Trend Inc. (“Deep Trend”) to provide subsea equipment management services, working closely with Wellstream on the design of the subsea flowlines and risers. Deep Trend will also provide broader subsea system engineering support for the definition and planning of the Oyo #7 tie backs.

“The contracting of Wellstream and the ordering of the production flowline and production riser, two critical long-lead items, are very important milestones for the upcoming Oyo well,” said Senior Vice President of Exploration and Production, Segun Omidele. “By ordering the materials now and leveraging the expertise of both Wellstream and Deep Trend, we are confident we will have the right subsea equipment to successfully tie-back production from Oyo #7 and increase Oyo field production in 2013.”

Press Release, October 17, 2012

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