HOUSTON--(BUSINESS WIRE)--Erin Energy Corporation (Erin Energy or the Company) (NYSE MKT:ERN) (JSE:ERN) today announced that the resource volume assessment of the three previously discovered fields (Tano North, Tano West, and Tano South) has been completed in the Expanded Shallow Water Tano (ESWT) Block, located offshore Ghana. The ESWT block is operated by its subsidiary company, Camac Energy Ghana Limited. The total discovered in-place oil and gas volumes have been assessed at approximately 500 million barrels and 282 BCF respectively. A total of 14 wells have been drilled in the fields, and many of the wells were also flow tested with oil and gas produced to surface. From the production tests oil production rates ranged between 600 and 2,047 barrels per day, with the API gravity of the produced oil ranging between 15 and 32 degrees. A maximum gas rate of about 13 million cubic feet per day was also established.
The resource evaluation was conducted by a US independent resources evaluator and various development concepts were screened under multiple oil and gas price scenarios. Efforts are continuing to further optimize the development in the current commodity price environment.
Erin Energy believes this evaluation is an important step in determining the commerciality of the development of the West, North, and South Tano fields, and is currently working with the joint venture partners and relevant government entities on further optimization studies towards declaration of commerciality, which is expected within the next few months.
“We are very encouraged by the results of the evaluation of resources and believe this asset holds significant potential for Erin Energy,” said Segun Omidele, Chief Operating Officer. “We are continuing to work with our partners and the government of Ghana to be able to declare commerciality of field development. The commencement of commercial oil production from Ghana would provide significant value to our stakeholders.”
Erin Energy Corporation is an independent oil and gas exploration and production company focused on energy resources in sub-Saharan Africa. Its asset portfolio consists of 9 licenses across 4 countries covering an area of 43,000 square kilometres (10 million acres), including current production and other exploration projects offshore Nigeria, as well as exploration licenses offshore Ghana, Kenya and The Gambia, and onshore Kenya. Erin Energy is headquartered in Houston, Texas, and is listed on the New York and Johannesburg Stock Exchanges under the ticker symbol ERN. More information about Erin Energy can be found at www.erinenergy.com.
Oil-in-Place Estimates
This press release refers to volumes of discovered oil- and gas-in-place. The Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only “reserves,” as that term is defined under SEC rules. Discovered petroleum initially-in-place is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of discovered petroleum initially-in-place is subject to application of recovery efficiency factors and economic analysis before any such volumes can be categorized as reserves. There is no certainty that any such volumes will ultimately be categorized as reserves or that it will be commercially viable to produce any portion of the petroleum initially-in-place.
Forward-Looking Statements
This news 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 or implied in these forward-looking statements due to a variety of factors, including the Company’s ability to successfully finance, drill, produce and/or develop the wells and prospects identified in this release, and risks and other risk factors discussed in the Company’s periodic reports filed with the Securities and Exchange Commission. 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.
