CAMAC Energy Inc. (ticker: CAK) is a U.S. based oil and gas company engaged in the exploration of offshore oil and gas leases in deep water Nigeria. The Company was founded in 2005 and has offices in Houston, Texas, Nairobi, Kenya, Banjul, Gambia and Lagos, Nigeria.
CAMAC Confirms Miocene Hydrocarbons at Oyo-7 Well
CAK’s Oyo-7 well in OML 120 had two objectives – test the hydrocarbon potential of the Miocene in OML 120, and complete/produce the well from the Pliocene. The company announced last week logging while drilling data revealed 65 feet of hydrocarbons in the Miocene – the first time the formation has been exploited in OML 120. OAG360 notes the Miocene is the most prolific producing zone offshore Nigeria and has been very productive in adjoining blocks. CAK reaffirmed that there are no plans to produce from the Miocene but said plans are to bring on gross production from the Pliocene in early 2014 at approximately 7,000 BOEPD.
To put the potential of Miocene production into perspective, the Bonga Field is a supermajor Miocene producer in the area and is operated by Shell Nigeria (55% WI), ExxonMobil (20% WI), Total (12.5% WI) and Nigerian Agip Oil Company (12.5%). The field started producing in 2005 and has since produced approximately450 MMBO.. The project single-handedly increased Nigeria’s oil capacity by 10%, and the play still averages 225 MBOPD.
CAK anticipates the Oyo-8 well will have a very similar drilling schedule and production rate as Oyo-7, bringing an additional 7,000 BOEPD. By mid-year 2014, CAK could be producing approximately 14,000 BOEPD gross from the two wells.
Recent Financial Results
CAMAC Energy released its Q3’13 earnings results alongside the Oyo-7 well results. The company reported a net loss of $2.7 million, or $0.02 per share. Revenues for the quarter totaled $3.5 million with an average realized price of $112.09 per barrel. Crude oil production averaged 2,228 BOPD gross, 314 BOPD net, compared to 2,641 BOPD gross, 388 BOPD net, for the same period last year.
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