Heritage Oil grosses over 50,000bpd from OML 30 in Nigeria

United Kingdom-based Heritage Oil plc, an independent upstream exploration and production company, says production from its Oil Mining Lease (OML) 30 in Nigeria increased during 2013, achieving record gross production of over 50,000 barrels of oil per day (bopd) since acquisition.

In its announcement of its results for the 12 months ended December 31, 2013, on its website, Heritage stated that maintenance work over OML 30 was progressing as planned, adding that development drilling on OML 30 remains on track for commencing in the second half of 2014.

According to the company, 2013 average production from the interest in OML 30 net to Heritage was 8,919bopd.

Tony Buckingham, CEO, Heritage Oil, said: “2013 has been an extraordinary year for Heritage and Shoreline with a step change in production and operating cash flow enabling us to expand our exploration portfolio through acquiring additional exciting exploration opportunities. Our progress during 2013 resulted from the continued development of OML 30 in Nigeria and the decision to enter Papua New Guinea, while continuing with our work programme in Tanzania.

“Our balanced portfolio includes significant producing fields and an enlarged exploration portfolio providing both geographic and operational diversification. Cash flow generation from OML 30 is now so robust that it is our intention to become a long-term sustainable dividend payer commencing within the next 12 months.”

Heritage said it had successfully completed the refinancing of the bridge loan facility with a five-year $550 million senior secured revolving reserves based lending facility drawn by Shoreline Natural Resources Limited in Nigeria.

In its outlook for 2014, the company said it would continue its investment in OML 30 during 2014, including the installation of gas lift compressors, refurbishment of equipment, statutory inspection and testing of all pressure vessels and inspection of all well-heads and pipelines continue to support well optimisation, which will result in further increases in production.

As a result of an enforced shut-in at OML 30 during the first quarter of this year, total production, net to Heritage, for 2014 is estimated in the range of 14,500-18,000bopd, said Heritage.

The company expects 2014 year-end exit gross production rate from OML 30 to be between 65,000 and 70,000bopd.

Heritage’s footprint in Nigeria was established in November 2012 on the completion of the acquisition of a major interest in OML 30 through its interest in Shoreline Natural Resources Limited. Shoreline acquired a 45 percent interest in OML 30 for cash consideration of $850 million, with the National Petroleum Development Company holding the remaining 55 percent interest.

The company is engaged in the exploration for, and the development, production and acquisition of, oil and gas internationally. It has producing assets in Nigeria and Russia and exploration assets in Tanzania, Papua New Guinea, Malta, Libya and Pakistan.

FEMI ASU