Erin Energy Corp. (NYSE MKT: ERN) has commenced production from the Oyo-7 well located in OML 120 offshore Nigeria.
Oyo-7 was drilled to a total depth of approximately 8,000 feet (2,438 meters) and was successfully completed horizontally in the Pliocene formation. The well is located in approximately 1,000 feet (300 meters) of water and is producing into the Floating Production Storage and Offloading vessel, Armada Perdana. Oyo-7 is expected to produce approximately 7,000 barrels of oil per day following optimization of choke size.
Segun Omidele, senior vice president of exploration and production for the company said bringing the well on production will double Erin Energy’s current production rate from Oyo field where the company serves as operator with a 100% interest in the block.
Erin Energy drilled the Oyo-7 with two planned objectives. The primary objective was to target the Pliocene formation from which it is now producing; and the secondary objective was to test the deeper Miocene formation for hydrocarbon potential. The Oyo-7 successfully confirmed hydrocarbon in the Miocene formation, which was previously undrilled on the block. This test has de-risked the Miocene in Erin Energy’s offshore Nigeria blocks and has provided data for the company’s planned Miocene exploration program, which targets recoverable P50 resources of nearly 3 billion barrels of oil equivalent. Drilling of the company’s first Miocene exploration well is slated for 4Q 2015.