Panoro Energy awards rig contract for Aje field

10 June 2015, Lagos – Panoro Energy ASA, an independent oil and gas exploration and production (E&P) company focused on West Africa, has announced the award of rig contract for Aje oilfield in Oil Mining Lease (OML) 113.
oil-rigLocated in the extreme western part of offshore Nigeria adjacent to the Benin border, OML 113 is operated by Yinka Folawiyo Petroleum (YFP).
Other partners include Panoro Energy, New Age, First Hydrocarbon Nigeria (FHN), (a subsidiary of Afren Plc), Energy Equity Resources (EER), and Jacka Resources.
In an operational update issued by Panoro Energy on Monday, the company said that the operator of OML 113, on behalf of its joint venture partners, has entered into a rig contract with Saipem for the Scarabeo 3 drilling rig to carry out the drilling and completion programme for the Aje Field Cenomanian oil development.
Aje is an offshore field in the western part of Nigeria in the Dahomey Basin at the border with Benin, with first oil targeted for December 2015.
The field is situated in water depths ranging from 100 to 1,000 metres about 24 kilometres from the coast.
Panoro Energy holds a 6.502 per cent participating interest in OML113, with a 12.1913 per cent revenue interest and 16.255 per cent paying interest in the Aje Field.
The Aje Field contains hydrocarbon resources in sandstone reservoirs in three main levels – a Turonian gas condensate reservoir, a Cenomanian oil reservoir and an Albian gas condensate reservoir.
According to the statement by the company, the Scarabeo 3 rig is a semi-submersible rig currently stationed offshore Lagos.
“The rig will be moved 18 nautical miles to the Aje drilling location and will be used to carry out well operations for the first phase of the Aje Cenomanian Oil field development that includes two subsea production wells. The well operations will comprise the completion of the existing Aje-4 well as a production well, and the drilling and completion of a new well, Aje-5, which will be drilled to the Aje-2 subsurface location. The Aje-2 well demonstrated high reservoir productivity in a Cenomanian production test conducted in 1997, flowing approximately 3,700 bopd of 41ËšAPI (American Petroleum Institute) oil under suboptimal well conditions,” the company said.
Panoro Energy further stated that the well operations are expected to commence in early third quarter of 2015 and are likely to take approximately 90 days to complete.
“Once well operations have been completed, subsea equipment will be installed and the wells will be tied back to the Front Puffin FPSO (Floating Production Storage Offshore vessel), currently undergoing refurbishment in Singapore,” the company added.
The Chief Executive Officer of Panoro Energy, Mr. John Hamilton said his company was pleased to be entering into the rig contract for the drilling and completion of the Aje development wells.
“We have been able to achieve a lower rig rate than was expected when the Final Investment Decision was made in October 2014. With well operations expected to commence in the next few weeks, we will continue moving towards our incremental growth strategy of converting Panoro’s discovered resource base into commercial production and generating positive cash flow in 2016,” Hamilton added.
The company further stated that the future phases of the project will likely target additional Cenomanian wells, adding that a later Turonian/Albian gas condensate project is currently considered as a separate development in the future.

– This Day

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