CAMAC Energy Announces Additional Drilling Rig for Offshore Nigeria

CAMAC Energy has reported that it has signed a contract with a subsidiary of Transocean Ltd. for the provision of the semi-submersible drilling unit Sedco Express for drilling and completion activities offshore Nigeria.

The contract allows for the drilling or completion of up to three wells, and CAMAC intends to use the rig to accelerate timing of the tie-in of production from the Oyo-7 and Oyo-8 development wells.

With the ability to drill a third well, and an option to extend the contract, the Company is also considering using the rig to accelerate its 2015 exploration drilling program.

“CAMAC is fully committed to bringing on production from our next two development wells as soon as possible, and we are pleased to secure this additional rig to accomplish our goals. The Sedco Express is a highly-efficient rig, and we may also utilize it to accelerate our exploration program,” said Kase Lawal, Chairman and Chief Executive Officer at CAMAC.

The Sedco Express is an ultra deepwater, semi-submersible drilling rig built in 2000, and is already within close proximity of the Oyo Field in OML 120. The Company’s other rig, the drillship Energy Searcher, will continue the plugging and abandonment operations on the Oyo-5 and Oyo-6 wells.

The announcement also comes months after the company  updated independent assessment of the Company’s prospective resources for four offshore Nigeria prospects located within Oil Mining Leases 120 and 121 by DeGolyer and MacNaughton  that increased the Company’s unrisked P50 recoverable resources from 537 million barrels of oil to 2,377 MMbbl in four of its top exploration prospects

CAMAC Energy has a 100% interest in a production sharing contract  covering Oil Mining Leases 120 and 121where the Oyo Field is located in deepwater depths of between 200 and 500 meters approximately 75 km offshore Nigeria.

Other than Nigeria the African foussed Houston based company has interest in three other African countries namely Ghana, Kenya and Gambia.