Petroleum Africa
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Wednesday, August 10, 2016
Erin Energy continued to make progress in Q2 with its balance sheet restructuring and debt reduction initiatives according to its CEO, Segun Omidele, in the company’s Q2 report.It has successfully restructured its Zenith term loan facility and realized revenues of $23.2 million for the quarter.
Erin’s cost reducing strategies initiated in Q1 have become deeply embedded in its operations. The company has also made the “tactical decision” to explore acquisition opportunities given the current upstream environment.
Operationally in Nigeria during Q2, the company brought the Oyo-8 well back online using a deepwater light intervention vessel and achieved net average daily oil production of 5,400 bpd, compared to 1,800 bpd in the previous quarter. Currently, Oyo-8 is producing more than 7,000 bpd.
The Oyo-7 well has not able to come back online naturally following an emergency shut down on July 1. This is due to high water production from the well and this has resulted in a temporary production loss of about 1,400 bpd. Erin is currently attempting to bring the Oyo-7 well back by introducing nitrogen from the production facilities via subsea infrastructure to the well. The company intends to carry out this nitrogen lift after its next crude lifting scheduled for the week of August 15.
Progress on preparations for the next drilling campaign, which is planned to commence in Q4, is being made. Both the identification of a drilling rig and the procurement of long-lead well and subsea equipment are progressing well.
The Oyo-9 production well is planned as an additional development well within the central area of the Oyo field in Oil Mining Lease 120 and will be tied into the existing production facilities to increase the company’s production by approximately 6,000–7,000 bpd
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