CAMAC Energy Inc. (NYSE MKT: CAK) is a U.S. based oil and gas company engaged in the exploration of offshore oil and gas leases in deep water Nigeria. The Company was founded in 2005 and has offices in Houston, Texas, Nairobi, Kenya, Banjul, Gambia and Lagos, Nigeria.
CAMAC Energy, Inc. announced on October 16, 2013, preliminary results from its Oyo-7 well in OML 120 offshore Nigeria. The results exceed joint internal Allied-CAMAC pre-drill expectations; Allied Energy PLC is the operator of the Oyo-7 well. Logging while drilling data indicated gross oil pay was encountered at 133 ft. (net oil pay of 115 ft.) and gross gas pay of 103 ft. (net gas pay of 93 ft.) in the gas cap from the Pliocene reservoir. The reservoir was penetrated at 5,564 ft. with a planned total drilling depth of 8,038 ft. CAK expects to penetrate the Miocene secondary objective, which ultimately is as critical as the Pliocene results at Oyo-7 given that the large Bonga and Erha Fields offshore Nigeria are both producing from the deeper Miocene.
In its Q2’13 earnings call, Earl McNiel, CAMAC Energy’s Senior Vice President and Chief Financial Officer, said he expects the drilling process on the Oyo 7 to take approximately 60 days. He also explained the well is dual-purpose, and is being used to both increase production and test potential in the deeper Miocene. CAK expects to begin production on the Oyo 8 in 2014, and estimates gross production at 6MBOPD TO 7MBOPD. The prospect of spudding the Oyo 9 and another exploratory Miocene well remain under consideration.
CAMAC Commentary
Dr. Kase Lawal, Chairman and CEO of CAMAC Energy, said: “We are highly encouraged by these preliminary net pay results in the Pliocene reservoir, which is the primary objective of the well. Not only have we confirmed net oil pay results that exceed our internal expectations, but a smaller than expected gas column was also penetrated. As a result, we expect improved oil production from the horizontal section. I am proud of the technical teams at both Allied Energy and CAMAC Energy for our successful drilling operations, and look forward to updating shareholders as we complete drilling and evaluation of the deep Miocene reservoir.”
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