Completion of Wells Expected to Double Production
HOUSTON–(BUSINESS WIRE)–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, as well as updated its plans for drilling one of its prime exploration prospects.
Erin Energy currently produces approximately 6,000 barrels of oil per day (BOPD). Drilling operations for the Oyo-9 development well are planned to commence next month and be completed by year end, pursuant to the drilling contract with Pacific Drilling. Oyo-9 has the potential to increase Oyo field production by 6,000-7,000 barrels of oil per day, which alone would double the Company’s current production. Coincidental with the completion of Oyo-9, the Company will also tie back to its FPSO the Oyo-7 well, which should add approximately 1,200 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.
The drilling rig under contract with Pacific Drilling is the Pacific Bora, a highly efficient sixth generation double-hulled drillship.
Femi Ayoade, Erin Energy’s CEO commented, “We are pleased with the progress in our drilling operations and the possibility to more than double 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 in OML 120 and 121. Solid progress is also being made to restructure the Company’s debt, including the reduction in our accounts payable.”
Frank C. Ingriselli, Erin Energy’s Chairman commented, “When I was elected to the Board of Directors a few weeks ago, I commented on the world class assets in Erin Energy’s portfolio and our plans to maximize value from those assets and the drilling of these Oyo wells will significantly add value to our portfolio. We plan to commence non-deal roadshows as soon as possible to communicate the Company’s story and opportunities to Wall Street so that our share price reflects the true value of our Company, as we execute on our development and exploration plans to add hundreds of millions of barrels of additional reserves.”