Press Release: Erin Energy Provides Drilling and Production Update
Completion of Wells Expected to Double Production
Erin Energy Corporation (“Erin Energy” or the “Company”) (NYSE MKT:ERN) (JSE:ERN) provided an update today on its drilling operations that are expected to double production for the Company, as well as updated its plans for drilling one of its prime exploration prospects.
Erin Energy currently produces approximately 6,000 barrels of oil per day (BOPD). Drilling operations for the Oyo-9 development well are planned to commence next month and be completed by year end, pursuant to the drilling contract with Pacific Drilling. Oyo-9 has the potential to increase Oyo field production by 6,000-7,000 barrels of oil per day, which alone would double the Company’s current production. Coincidental with the completion of Oyo-9, the Company will also tie back to its FPSO the Oyo-7 well, which should add approximately 1,200 BOPD. The Company is also discussing a possible extension to the contract with Pacific Drilling, depending on availability of funds, to drill one or two wells in the prolific Miocene geological zone located in OML 120.
The drilling rig under contract with Pacific Drilling is the Pacific Bora, a highly efficient sixth generation double-hulled drillship.
Femi Ayoade, Erin Energy’s CEO commented, “We are pleased with the progress in our drilling operations and the possibility to more than double the Company's current production. Additionally, we believe our greatest shareholder value creation opportunities are in our Miocene exploration prospects, where we are working to accelerate the drilling in OML 120 and 121. Solid progress is also being made to restructure the Company's debt, including the reduction in our accounts payable.”
Frank C. Ingriselli, Erin Energy’s Chairman commented, “When I was elected to the Board of Directors a few weeks ago, I commented on the world class assets in Erin Energy’s portfolio and our plans to maximize value from those assets and the drilling of these Oyo wells will significantly add value to our portfolio. We plan to commence non-deal roadshows as soon as possible to communicate the Company’s story and opportunities to Wall Street so that our share price reflects the true value of our Company, as we execute on our development and exploration plans to add hundreds of millions of barrels of additional reserves.”
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.
About Erin Energy
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 19,000 square kilometers (~5 million acres), including current production and other exploration projects offshore Nigeria, as well as exploration licenses offshore Ghana 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.
For more information about Erin Energy or to request a hard copy of the Company’s most recent complete audited financial statements free of charge, please call +1 713 797 2940 or visit www.erinenergy.com.
Erin Energy Corporation
Lionel McBee, +1-713-797-2960
Director, Investor Relations and Corporate Communications