DISCOVERED OIL IN PLACE OF APPROXIMATELY 500 MMBBLS OFFSHORE
--(BUSINESS WIRE)-- ( or the Company) (NYSE MKT:ERN) (JSE:ERN) today announced that the resource volume assessment of the three previously discovered fields (, , and ) has been completed in the Expanded Shallow Water Tano (ESWT) Block, located offshore Ghana. The ESWT block is operated by its subsidiary company, . 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.
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 ,” said Segun Omidele, Chief Operating Officer. “We are continuing to work with our partners and the government of to be able to declare commerciality of field development. The commencement of commercial oil production from 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 . 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 , as well as exploration licenses offshore , and The , and onshore . is headquartered in , and is listed on the and Johannesburg Stock Exchanges under the ticker symbol ERN. More information about can be found at www.erinenergy.com.
OIL-IN-PLACE ESTIMATES
This press release refers to volumes of discovered oil- and gas-in-place. () permits oil and gas companies, in their filings with the , to disclose only “reserves,” as that term is defined under 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.