CAMAC Energy Inc. has announced that it has found four new oil and gas reservoirs in the Oyo-8 development well located offshore in Nigeria's waters.
The independent exploration and production company said, “the Oyo-8 well commenced drilling operations on June 15, 2014 and has both a vertical and a horizontal section. The vertical section was designed to test for additional hydrocarbons in the previously undrilled Eastern fault block of the Oyo field."
"CAMAC Energy is pleased to announce Oyo-8 was drilled to a total depth (TD) of 6,059 feet, and successfully encountered four new oil and gas reservoirs with total gross hydrocarbon thickness of 112 feet based on results from the logging-while-drilling (LWD) data, reservoir pressure measurement, and reservoir fluid sampling.”
The well will be completed horizontally as a producing well in the Pilocene formation of the Central Oyo field.
Speaking about the large find to BusinessDayOnline, Senior Vice President of Exploration and Production at CAMAC Energy, Segun Omidele said, "This is an excellent result from the vertical section of Oyo-8, as it positively established oil presence in new reservoirs in the Eastern fault block. We have commenced a detailed evaluation of the results with a view to establishing the size of the incremental reserve additions."
"We are one step closer to bringing these two high-impact development wells on production that will generate immediate revenues, cash flow, and earnings for our shareholders."
Nigeria Oyo development background
According to SubseaIQ, the Oyo development was discovered in 1995 by Allied Petroleum, seismic data research indicated that the field held more than 45 million barrels of recoverable reserves of light 34.5-degree crude oil.
The field wasn't fully licensed until 2006 when Allied signed a production agreement with Eni and turned over operatorship to the company.
The new operator appraised the field and drilled Oyo 2, and then drilled four additional wells. Once appraisal drilling was completed, the operator stated Oyo now holds an estimated 50 million barrels of proven oil reserves. The field has recently developed at a faster pace:
- Oyo approved in 2008 consisting of two production wells, one gas, one water injection
- 2008 also saw the installation of four subsea trees with wellheads and control systems
- Eni awarded Technhip a $119 million turnkey contract for the development of the field
- Production commenced on the field in 2009 from two subsea wells connected to the Armada Perdana FPSO, and flows at a rate of 25,000 bopd.
Potential for more?
Now in its 8th phase, the Oyo development continues to surprise with the amount of reserves found offshore, but will it continue to produce surprises?
In April 2011, Netherland, Sewell & Associates produced an independent report citing the field to have an estimated 1.9 billion barrels of crude oil - almost four times the amount suggested 16 years earlier reported Offshore Technology.
If the figures continue to rise, the importance of the new reservoirs may just be the tip of the iceberg.
Photo Credit: Shell