HOUSTON, TX--(Marketwired - Sep 12, 2014) - CAMAC Energy Inc. ("CAMAC Energy" or the "Company") (NYSE MKT: CAK) announced today an update on the Company's operations in West and East Africa, including Nigeria, Ghana, Kenya, and Gambia.
Oyo Offshore Installation
Offshore installation campaign of the Company's Oyo field expansion project using the Normand Pacific installation vessel commenced on September 9, 2014 and consists of the recovery and relocation of umbilicals and flexible flowlines. This offshore installation work will be completed by the first week of October to allow the recently drilled Oyo-7 and Oyo-8 wells to be tied back to the floating production, storage, and offloading vessel Armada Perdana.
The Company has temporarily halted drilling on the Energy Searcher drillship, which is drilling the horizontal portion of the Oyo-8 well in the Oyo field. This was due to leaks in some control system hoses of the well's blow out preventer. Replacement hoses have been ordered and are en route to the drilling site. The Company expects to resume drilling operations within two weeks, while the current offshore installation work continues.
As a result of the leaks in the hoses, CAMAC Energy expects the production from the Oyo-8 well in December of 2014, while the Oyo-7 well will now come on production in January 2015.
CAMAC Energy is advancing its work program in the Shallow Water Tano Block, in which the Company holds a 30% interest, and is technical operator. The Block contains three discovered fields, and the work program requires the partners to determine the economic viability of developing the three fields within 9 months. All existing 3D seismic data, along with all geological and well data, have been obtained by the Company, from the Ghana National Petroleum Corporation and initial evaluation has commenced.
Following the award of the contracts for the 2D seismic in blocks L1b and L16 in Kenya, BGP has started the initial field equipment mobilization and shooting of seismic is expected within the next four weeks. Mobilization for L16 is expected in Q4 2014.
The processing of the recently acquired 2D data on L27 and L28 has now been completed and the processed data delivered to the Company and initial interpretation of the data has commenced.
The Company has received a regional geological and geophysical study report, which it commissioned from RPS Group Plc. The results are encouraging with respect to the hydrocarbon potential of CAMAC Energy's A2 and A5 offshore blocks. The Company now plans to further evaluate the legacy 2D seismic data in its possession and decide on the scope of a 3D seismic acquisition program.
About CAMAC Energy
CAMAC Energy is an independent oil and gas exploration and production company focused on energy resources in Africa. Its asset portfolio consists of nine licenses across four countries covering an area of 43,000 square kilometers (approximately 10 million acres), including existing production and other projects offshore Nigeria, as well as exploration licenses with hydrocarbon potential offshore Ghana, onshore and offshore Kenya, and offshore Gambia. CAMAC Energy is headquartered in Houston, Texas, and is listed on the New York Stock Exchange under the ticker symbol CAK, and on the Johannesburg Stock Exchange under the ticker symbol CME. For more information about CAMAC Energy, please visit www.camacenergy.com.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, concerning activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, they involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. The Company's actual results could differ materially from those anticipated in these forward-looking statements due to a variety of factors, including the Company's ability to successfully drill, complete, test and produce the wells and prospects identified in this release and risk factors discussed in the Company's periodic reports filed with the Securities and Exchange Commission (SEC). All forward-looking statements are expressly qualified in their entirety by this cautionary statement. You should not place undue reliance on forward-looking statements, which speak only as of their respective dates. The Company undertakes no duty to update these forward-looking statements.
(September 12, 2014 - 7:15 PM EDT)
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