CAMAC Energy announces arrival of drilling rig at Oyo field

United States-based CAMAC Energy Inc. said the Energy Searcher drillship, owned by Northern Offshore Ltd., has arrived Nigeria for the Oyo field development.

After taking on personnel, equipment and supplies, the rig will move to the Oyo field, where it is expected to commence drilling operations on the Oyo-8 well in mid-May, CAMAC Energy said in a statement on its website posted on Monday.

The rig, which is capable of drilling to total depths of up to 25,000 feet, and in water depths of up to 2,500 feet, is under contract for an initial term of one year, which may be extended for an additional one year, to carry out the company’s development programme for the Oyo field and to drill one or more high-impact exploration wells on Oil Mining Lease (OMLs) 120 and 121 offshore Nigeria.

CAMAC Energy, which explores for oil and gas mostly in Nigeria, had in February closed the acquisition of the remaining economic interests that it did not already own in the production sharing contract covering OMLs 120 and 121 offshore Nigeria, which include the currently producing Oyo field, from Allied Energy.

In order to optimise drilling, completion, and production activities, current plans are to spud Oyo-8 mid-May, with well hook-up and first production expected in October, the company said recently.

It said the drilling rig will then move to complete and hook-up Oyo-7, with first production expected in November. “Both wells continue to be on track to commence production this year, enabling CAMAC Energy to exit 2014, at an estimated production rate of 14,000 barrels of oil per day.”

CAMAC Energy is an independent oil and gas exploration and production company focused on energy resources in Africa, with asset portfolio consisting of nine licences across four countries covering an area of 43,000 square kilometres, including existing production and other projects offshore Nigeria, as well as exploration licences with hydrocarbon potential offshore Ghana, onshore and offshore Kenya, and offshore Gambia.