Indigenous marginal field producer, Energia Limited has announced plans to bring production from its Oil Mining Lease (OML 56) to 10,000 barrels per day (bpd) by 2013, from the 5,000 bpd currently.
Also, the company has disclosed its intention to bid for additional oil blocks at the next oil licensing round.
Managing Director/Chief Executive of Energia, Mr. Felix Ofori, who made the disclosure in Lagos, said the successful drilling and completion of the company’s Ebendo well-4, which tested 3,000 bpd in August brought the company’s production to 5,000bpd.
“We are happy to announce our successful drilling and completion of our Ebendo Well 4 that tested 3000bpd in August 2012. This brought our field producibility to some 5000bpd, but as prudent reservoir managers, we will continue to manage our reservoirs to ensure optimal production without creating problems associated with fast depletion of reservoirs,” Ofori said.
Ofori said the company expected its production to rise to 7,000bpd by December this year and to inch higher to 10,000bpd in 2013, after drilling of well-5 and well-6.
He said with a total production of 10,000bpd, the company would become an independent producer and should be able to launch into the bid round.
“We also wish to announce that we are presently drilling a second development well, Ebendo Well 5, top develop additional reservoirs found in Well 4, which we expect should be completed by mid-December 2012. This well is expected to bring our field total producibility to some 7000 bpd.
“Shortly after Well 5, the rig will be moving to our Well 6 in December 2012. Well 6 is targeted at some shallower reservoir. All of these are in line with our field development plan to bring our total field production to average at 10,000 bpd in 2013. Consequently, we plan to carry out some evaluation after well-6 that will enable us drill our subsequent wells in the field in the 2013 work programme period”, Ofori added.
He said with its strong technical backup and prudent operations, its revenue profile from current productions at 4,000 bpd was about $10m monthly, adding that the company had both financial muscle and technical expertise to successfully operate an oil block .
The Energia boss noted that the company, which is in joint venture with Oando , had been producing from its Well 1 for nearly two years without water production, as is commonly experienced with other MF operators. He said the company discovered about 300 feet of net hydrocarbon sand, which significantly increased its reserves base from 6 million barrels (mmbls), to 30 mmbls.
He said the setbacks encountered by the company in 2011/2012 period was securing a suitable land rig, which he said the company eventually got in October 2011 with ACME Energy, a wholly Nigerian drilling company.
According to him, “The challenges we had in our 2011/2012 period was securing a suitable land drilling rig, which we eventually did in October 2011, with ACME Energy Integrated Services.”
He put the cost of bringing the rig from Houston Texas, USA down to its location, at about $5million, aside from costs of getting the rig fit for purpose, which, he said took about six months to achieve.
The company, he said also had some challenges with crude evacuation as the Nigerian Agip Oil Company’s (NAOC’s) Brass Terminal, could not accommodate the additional combined production of 25,000bpd from the marginal field Cluster of seven producers as well as its own production.
To address these challenges, he disclosed that the company had signed a joint venture with Midwestern Oil and Gas, a member of the Cluster to construct an alternative 53-kilometer, 12-inch export pipeline that will run from the Umusade Field to Eriemu Manifold.
“This line should remove the present bottleneck we presently face through the export line to Brass Terminal; the cluster is presently looking in excess of 5000 bpd because of this,” he explained, adding that the alternate line is expected to be ready by the second quarter of 2013, with a running cost of about $40million.
He also stated that the company was constructing the first phase of its 2×10,000 barrels capacity crude oil storage tank at its flow station, which will be commissioned in December, which he said would be further expanded in the second phase of the field development programme.