HOUSTON - CAMAC Energy Inc., an independent US oil and gas exploration and production company, has discovered four new oil and gas reservoirs in the Oyo-8 development well located offshore Nigeria in Oil Mining Lease (OML) 120.
Announcing its preliminary results Monday, the Houston based company with exploration licenses in four African nations said: "Oyo-8 was drilled to a total depth (TD) of 6,059 feet, and successfully encountered four new oil and gas reservoirs with total gross hydrocarbon thickness of 112 feet based on results from the logging-while-drilling (LWD) data, reservoir pressure measurement, and reservoir fluid sampling."
CAMAC Energy had commenced the Oyo-8 well drilling operations on June 15, 2014 and has both a vertical and a horizontal section. The vertical section was designed to test for additional hydrocarbons in the previously undrilled Eastern fault block of the Oyo field.
Following the hydrocarbon discovery, the well will be completed horizontally as a producing well in the Pliocene formation of the Central Oyo field.
Oyo-7, which was successfully drilled in October 2013, will also be completed horizontally in the Pliocene formation of the Central Oyo field, the company stated.
"This is an excellent result from the vertical section of Oyo-8, as it positively established oil presence in new reservoirs in the Eastern fault block. We have commenced a detailed evaluation of the results with a view to establishing the size of the incremental reserve additions," said Segun Omidele, Senior Vice President of Exploration and Production.
"We are one step closer to bringing these two high-impact development wells on production that will generate immediate revenues, cash flow, and earnings for our shareholders."
CAMAC Energy's African asset portfolio consists of nine licenses across four countries covering an area of 43,000 square kilometers, including current production and other projects offshore Nigeria, as well as exploration licenses offshore of Ghana, Kenya, and Gambia, and onshore in Kenya.
Reporting its first quarter results in May, the NYSE listed energy firm has projected that first production from Oyo-8 well is expected in October, while production from Oyo-7 is targeted to begin before year-end.
Both wells are on schedule to commence production this year, enabling CAMAC Energy to exit 2014 at an estimated production rate of 14,000 barrels of oil per day, the company stated giving details of operations in Nigeria.