CAMAC Energy Inc. (“CAMAC” or “the Company”) (NYSE MKT:CAK) announced today it has finished completion operations on the Oyo-8 well, located offshore Nigeria, and is now ready to commence oil production.
Oyo-8 is hooked up to the FPSO Armada Perdanaowned by Bumi Armada Berhad (“Bumi”). However, CAMAC has been informed by Bumi that the FPSO is not ready to receive oil production from the well due to class certification inspections of the vessel’s mooring lines being conducted by the American Bureau of Shipping (“ABS”). Bumi estimates these inspections to be completed within two weeks, at which time Oyo-8 will be allowed to produce into the FPSO.
In the meantime, CAMAC is demobilizing the Sedco Express drilling rig from the Oyo-8 location and the rig will then mobilize to the Oyo-6 well location to continue its planned Oyo field operations. The Company does not anticipate further changes to the project schedule of the Oyo-7 well as a result of the FPSO inspection delays.
Kase Lawal, Chairman and Chief Executive Officer, commented: “The successful well completion operations on Oyo-8 and our readiness to commence oil production are significant milestones for creating long-term shareholder value. The delay in commencing production due to the ABS certification process on the FPSO is very unfortunate; however, we are confident that Bumi is taking all necessary steps to complete the process as quickly as possible.”
About CAMAC Energy
CAMAC Energy is an independent oil and gas exploration and production company focused on energy resources in sub-Saharan Africa. Its asset portfolio consists of nine licenses across four countries covering an area of 10 million net acres, including current production and other exploration projects offshore Nigeria, as well as exploration licenses offshore Ghana, Kenya, and Gambia, and onshore Kenya. CAMAC Energy is headquartered in Houston, Texas. For more information about CAMAC Energy, please visit www.camacenergy.com.
