Erin Energy is expected to double its current production of oil after the Oyo-9 oil well, located offshore Nigeria, begins operations.
Updating its plans for drilling one of its prime exploration prospects, the company has finalized to spud Oyo-9 by end of July. In this regard, the company has sent a notification to Pacific Drilling and the rig contractor expressed its readiness to mobilise its drilling rig Pacific Bora by the end of July.
As per Houston, Texas-based company, production at Oyo-9 is expected to increase Oye field output by six to seven thousand barrels of oil per day, which will double its production from the current production of the company. Erin currently produces more than 6,200 barrels of oil per day (BOPD) from its Oyo 8 well.
Soon after completing the drilling at Oyo-9, the company will also tie back in to its floating production storage and offloading (FPSO) to Oyo-7 well which can add another 2000 barrels of oil per day (BOPD).
Erin Energy is also in discussions with Pacific Drilling to extend its contract, depending on the funds availability, to drill one or two wells in the prolific Miocene geological zone located in OML 120.
Erin Energy Femi Ayoade CEO said: "We are pleased with the continued successful production from our Oyo 8 well, now producing over 6,200 BOPD, and the mobilization this month of the Pacific Bora rig to drill our Oyo 9 well and also the re-start of production from Oyo 7.
“These operations should allow us to meet our short-term goal of more than doubling the Company's current production. Additionally, we believe our greatest shareholder value creation opportunities are in our Miocene exploration prospects where we are working to accelerate the drilling of these prospects in OML 120 and 121.
“The Company is also making good progress on restructuring our debt, including the reduction in our accounts payable."