Independent oil and gas exploration and production company Erin Energy has announced a production increase in its Oyo field in Nigeria.
The Houston based firm has also reported a surge in revenue for the first quarter of 2016 in its Q1 financial and operational results.
“The excellent planning and execution of the Oyo-8 subsea intervention has further strengthened our confidence in our ability to execute complex deepwater operations and also speaks to the experience and quality of our operational and technical teams,” said Kase Lawal, Erin’s CEO.
Production Increase at Oyo
Earlier this month, Erin reported that they had been successful in reestablishing oil flows from a well at their Oyo oil field, offshore Nigeria.
The oil well had stopped flowing due to a failed sub-surface controlled sub-surface safety valve (SCSSV). Island Offshore had been tasked to undertake the intervention work, with their Light Well Intervention (LWI) vessel, the Island Constructor.
Due to the success of the well intervention work, the company is planning further activities on the Oyo field to increase its production further, whilst also reducing unit operating cost for the asset.
Island Constructor Light Well Intervention Vessel
The Oyo field is now producing 10,380 barrels of oil equivalent per day (boepd), compared to no production during the first quarter of 2015.
Over the same period, the Africa-focused company posted US$4.9 million (£3.39 million) in revenue, compared to nil for the first quarter of last year.
“With the reopening of Oyo-8 and the success we have achieved I our cost reduction efforts, we are now better positioned to achieve financial stability in our operations”, concluded Lawal.
Offshore Field Development
Erin Energy has also stated that they are currently in negotiations regarding drilling rig contracts and long-lead production equipment, as well as a 20% cut in operating and capital expenditure.
In Ghana, the company is discussing options to enhance project economics, while in Gambia, it has recently acquired 3D data, to be delivered over the third quarter of the year.
Meanwhile, in Kenya, the firm is seeking to farm out part of its offshore and onshore blocks.
Erin Energy’s portfolio consists of nine licences across four countries including current production and other exploration projects offshore Nigeria as well as exploration licences offshore Ghana, Kenya and Gambia and onshore Kenya.