Erin Energy is set to start drilling at the Oyo-9 well offshore Nigeria by the end of July, and has informed Pacific Drilling – whose rig it will be using – of its intention.
According to Erin Energy Pacific Drilling has assured Erin of its readiness to mobilize its sixth drillship, Pacific Bora by the end of July.
Oyo-9 is expected to increase Oyo field production by six to seven thousand barrels of oil per day, which alone will double the current production of the company. Coincidental with the completion of Oyo-9, the company will also tie back in to its FPSO the Oyo-7 well which could add an additional approximately 2,000 barrels of oil per day (BOPD).
Erin is also in talks with Pacific Drilling over a possible extension to the contract with Pacific Drilling, depending on availability of funds, to drill one or two wells in the prolific Miocene geological zone located in OML 120.
Erin continues to produce over 6,200 BOPD from its Oyo 8 well, the company said.
Femi Ayoade, the Erin CEO said: “We are pleased with the continued successful production from our Oyo 8 well, now producing over 6,200 BOPD, and the mobilization this month of the Pacific Bora rig to drill our Oyo 9 well and also the re-start of production from Oyo 7. These operations should allow us to meet our short-term goal of more than doubling 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 of these prospects in OML 120 and 121. The company is also making good progress on restructuring our debt, including the reduction in our accounts payable.”
Frank C. Ingriselli, the Erin Chairman commented: “The drilling and completion of these Oyo wells will add significant cash flow and reserves to the Company and thereby deliver on shareholder value. We plan to as soon as possible embark on a campaign of non-deal roadshows and other events and actions so that the marketplace recognizes the true value of our world class assets and that such value is reflected in our share price.”