The company also disclosed that the Oyo-8 development well offshore Nigeria, which has been spud on June 15, 2014, together with the Oyo-7 well, is expected to significantly increase production from the Oyo Field.
The Oyo-8 well is located offshore in Oil Mining Lease (OML) 120, where CAMAC Energy is the operator and owns a 100 percent working interest.
According to the company, this development well lies within the Oyo field, which was one of the first deepwater oil discoveries made in Nigeria.
The Oyo field is located approximately 46.6 miles, about 75 kilometres offshore Nigeria in water depths of approximately 984 feet, about 300 metres.
Oyo-8 will be drilled by the Northern Offshore Energy Searcher, mid-water drillship, a total depth of approximately 5,905 feet, 1,800 metres in water depths of approximately 1,017 feet, 310 metres, and will produce from the Pliocene reservoir.
The Oyo-8 well is expected to commence production in the fourth quarter and, together with the Oyo-7 well which will be completed subsequent to the Oyo-8 well, is expected to significantly increase production from the Oyo Field.
The Oyo field commenced production in December 2009 and produces oil and natural gas.
The Oyo deepwater oilfield is located 75kilometres off the shore of Nigeria in OML blocks 120 and 121. Its oil resources lie at a water depth of 410m, 1,345 feet.
Discovered in 1995, Oyo is one of the first oilfields to be discovered off the coast of Nigeria. The Federal Republic of Nigeria leased OML 120 block for oil mining in 2002.
The appraisal wells were drilled between 2006 and 2007. Initial production from two wells began in December 2009. The associated gas from the wells is reinjected through a third well to increase oil recovery and reduce flaring.
The Oyo field is operated by Nigeria Agip Exploration, a subsidiary of Eni. The operator holds a 40 per cent stake in the project.
The remaining 60per cent interest was held by Allied Petroleum, which was acquired by CAMAC Energy in April 2010. The acquisition was completed in February 2011.
Early seismic data estimated the probable and proved recoverable reserves at the Oyo field to be 45 million barrels of light crude oil.
The drilling of appraisal wells began in 2006 and six appraisal wells were drilled in total.
The proven resources were later revised to 50 million barrels.
In April 2011, Netherland, Sewell & Associates produced an independent engineering report with the latest estimated reserves at the OML 120 and 121 blocks.
The field is estimated to have 1.9 billion barrels of crude with a high of 6.3 billion barrels of oil-in place.
The associated recoverable and prospective oil resources are 626 million barrels with a high of 2.2 billion barrels.
Eni has been the operator of the field since April 2010. The field started production at a rate of 25,000bopd. CAMAC Energy is a United States-based energy company engaged in the exploration, development and production of oil and gas.
– This Day