Erin Energy Corp. (ticker: ERN), a Houston-headquartered international oil producer, has assets based entirely in sub-Saharan Africa. The company operates in Nigeria, Kenya, Ghana, and Gambia—from approximately 5 million acres.
Erin Energy’s Nigeria operations are offshore with a 100% working interest. The offshore production is connected to the Armada Perdana FPSO, or floating production, storage, and offloading vessel. The Aramada Perdana has a capacity of 40 MBOPD, and can store 1.1 million barrels of oil.
The company’s Ghana assets are under a 30% working interest in the expanded shallow water Tano block, where Erin Energy is currently evaluating the field’s economic potential.
Erin Energy has two licenses to operate in offshore Gambia—in an area that is 2,682 square kilometers.
The company is engaged in four production sharing contracts in Kenya, where it is evaluating the hydrocarbon potential in a 36,913 square-kilometer area.
Drilling to double production
As of July, Erin Energy announced that its drilling operations off of the Nigerian coast are expected to double the company’s production. Erin Energy will be spudding the Oyo-9 well at the end of July—which is expected to increase the field production by six to seven MBOPD.
As of the end of Q1, 2017, the company averaged a production rate of 5,500 BOPD.
Erin Energy has several prospects in its offshore Nigerian plays in addition to the Oyo prospect, such as the G Prospect, the Oyo Northwest Project, and the Ereng Prospect.
Farm-out with FAR Ltd.
In July, 2017 Erin Energy received the go-ahead from the Gambian government for a farm-out agreement with FAR Ltd., an Australian oil and gas company. Under the terms of the farm-out, FAR will acquire 80% interest and operatorship of Erin Energy’s A2 and A5 offshore blocks.
FAR will fund Erin Energy through its first exploration well in the blocks and will pay Erin Energy $5.18 million and will carry $8.0 million of Erin Energy’s share of the costs. The companies intend to drill the exploration well in late 2018.
Erin Energy Corp. is presenting at EnerCom’s The Oil & Gas Conference® 22
Erin Energy will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and 
gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
