HOUSTON, TX--(Marketwired - Apr 22, 2014) - CAMAC Energy Inc. ("CAMAC Energy" or the "Company") (NYSE MKT: CAK) announced today an update on the Company's operations in West and East Africa, including Nigeria, Ghana, and Kenya.
The Northern Offshore Energy Searcher drillship is currently located offshore Cameroon, where it is awaiting final clearance by the Nigerian Department of Petroleum Resources ("DPR") to enter Nigeria and commence drilling operations at the Oyo Field. The DPR has completed its inspection, and is expected to issue final clearance imminently. The drilling rig is anticipated to arrive at the Oyo Field by the end of April.
In order to optimize drilling, completion, and production activities, current plans are to spud Oyo-8 mid-May, with well-hookup and first production expected in October. 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.
In addition to the development wells offshore Nigeria, the Company has identified 10 exploration prospects and 12 leads, and has currently high-graded three prospects containing unrisked prospective resources in excess of 200 MMBO each. Current efforts are focused on determining the first exploration well location to be drilled in 2015.
CAMAC Energy recently received parliamentary ratification of its Petroleum Agreement relating to the Expanded Shallow Water Tano Block in Ghana. The Company has been named technical operator and will hold a 30% interest in the Block. The Block contains three discovered fields, and the work program requires the partners to determine, within nine months, the economic viability of developing the discovered fields. A leading worldwide independent petroleum consulting firm has been identified to assist with the evaluation. Activities will include evaluating existing 3D seismic data, and geological and well data.
Exploration activities are continuing in the Lamu Basin on Blocks L1B and L16 onshore, and on Blocks L27 and L28 offshore.
- Completed a Gravity and Magnetic Survey in 2013
- Completed an Environmental and Social Impact Assessment Study in February 2014
- Submitted "Invitation to Tender" requests to seismic companies that are active in the region. Final bids are due early May 2014
Work is focused on drilling two exploration wells in 2015/2016: one in Block L1B, and one in Block L16
Current activities onshore Block L1B are targeting net unrisked prospective resources of 900 MMBO from five leads.
- Completed the acquisition of multi-client 2D seismic in March 2014, and processing is currently underway
- Presently building a dataset for a Geological and Geophysical Study
- Results from the 2D interpretation will be used to outline the location for a 3D seismic acquisition
- 3D seismic will then be processed to interpret the geologic framework
Evaluations are being directed towards drilling one exploration well in either Block L27 or Block L28 in 2016/2017.
Segun Omidele, Senior Vice President of Exploration and Production, commented, "CAMAC Energy's continued focus is to improve our current production and cash flow, while making solid progress identifying and developing our world-class, high-impact exploration prospects and leads. We are confident about our current operational status, and look forward to ramping up net daily production from 2,000 barrels of oil today to 14,000 barrels of oil by year-end."
About CAMAC Energy
CAMAC Energy is an independent oil and gas exploration and production company focused on energy resources in Africa. Its asset portfolio consists of nine licenses across four countries covering an area of 43,000 square kilometers (approximately 10 million acres), including existing production and other projects offshore Nigeria, as well as exploration licenses with hydrocarbon potential offshore Ghana, onshore and offshore Kenya, and offshore Gambia. CAMAC Energy is headquartered in Houston, Texas, and is listed on the New York Stock Exchange under the ticker symbol CAK, and on the Johannesburg Stock Exchange under the ticker symbol CME. For more information about CAMAC Energy, please visit www.camacenergy.com.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, concerning activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, they involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. The Company's actual results could differ materially from those anticipated in these forward-looking statements due to a variety of factors, including the Company's ability to successfully drill, complete, test and produce the wells and prospects identified in this release and risk factors discussed in the Company's periodic reports filed with the Securities and Exchange Commission (SEC). All forward-looking statements are expressly qualified in their entirety by this cautionary statement. You should not place undue reliance on forward-looking statements, which speak only as of their respective dates. The Company undertakes no duty to update these forward-looking statements.
We may use certain terms in this press release such as "contingent resources," "prospective resources," "leads," "prospects," "oil in place" or other descriptions of volumes which imply the possible existence of quantities of resources. These estimates are by their nature more speculative than estimates of proved reserves and accordingly, are subject to substantially greater risk of being actually realized by the Company. The SEC permits oil and gas companies, in their filings with the SEC, to disclose only "reserves," as that term is defined under SEC rules. Prospective resources are those quantities of petroleum estimated, as at a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Contingent resources are those quantities of petroleum estimated, at a given date, to be potentially recoverable from known accumulations, but the applied projects are not yet considered mature enough for commercial development due to one or more contingencies. Prospective resources have both an associated chance of discovery and a chance of development, while contingent resources have an associated chance of development. Investors should not assume there will be any discovery associated with prospective resources, or that any discovery or any contingent resources will be economically drillable or ever be upgraded into reserves.