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CAMAC announces higher reserves estimate in OMLs 120,121

By on April 14, 2011

A new York-Exchange listed oil firm, CAMAC Energy, largely owned by Nigerian born Kase-Lawal, has announced a higher estimate of oil reserves in two of its offshore blocks in Nigeria, than earlier projected, Empowered Newswire reports.

A statement from the company said that the results of an independent engineering report prepared by Netherland, Sewell and Associates Incorporated, “concludes that the best estimate for gross [100 per cent] undiscovered original oil-in-place for oil mining leases 120 and 121, is 1.9 billion barrels with a high of 6.3 billion barrels.”

Also, the report showed that, “the best estimate for associated recoverable gross contingent and un-risked prospective oil resource is 626 million barrels with a high of 2.3 billion barrels”.

The statement said that the outcome of the independent engineering report, “is significantly higher than the estimated 500 million barrels of potential recoverable reserves detailed in the company’s recent investor presentation.”

The Chairman, CAMAC Energy, Dr. Kase Lawal, said, “we are pleased to receive this report on resources for the OML 120 and 121 blocks.

“This report clearly supports the potential we see in the two blocks and we are excited about the results.”

He noted that OMLs 120 and 121 are in a known hydrocarbon province, have existing production, extensive 3D seismic coverage and over a dozen identified prospects and leads. Together with Eni, the technical operator of OML 120 and 121, we will now work towards testing the greater potential of this play, including the deeper Miocene zone.”

Earlier in the week, CAMAC Energy announced that its President and Chief Executive Officer, Bryon Dunn, was resigning, leading to the naming of Lawal as CEO in addition to his previous role as non-executive chairman of the board.

A statement on the issue said, “the six-year old Houston energy company, has appointed Kase Lawal,chairman of the board, as Dunn’s replacement,” and the company also formed a search committee to find a permanent CEO.

Also, Allied Energy, an affiliate of CAMAC, has agreed to give CAMAC a $25m credit facility to help fund oil field work.

CAMAC is a US- based energy company engaged in the exploration, development and production of oil and gas with operations in Nigeria and China.

The company’s principal assets include interests in OML 120 and OML 121, offshore oil leases in deepwater Nigeria that started production from the Oyo field in December 2009. It also has a 100 per cent interest in the Zijinshan Block gas asset in the Shannxi province in China.

The Oyo field came on stream after $963m had been spent on it by CAMAC and Eni. It produces from two subsea wells in 400 metres of water about 75 kilometres offshore Nigeria.

Source : Punch