Erin Energy Corporation (“Erin Energy” or the “Company”) (NYSE MKT:ERN) (JSE:ERN) provided an update today on its drilling operations that are expected to double production for the Company and also updated its plans for drilling one of its prime exploration prospects.
Erin Energy has finalized its plan to spud Oyo-9 by end of July and has sent a notification to the rig contractor, Pacific Drilling, to this effect. The rig contractor has in turn assured Erin of their readiness to mobilize their sixth generation rig, 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).
The Company is also discussing 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.
Femi Ayoade, the Erin CEO commented: “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.”