Guardian

ALLIED Energy Plc, an affiliate of Camac Energy’s largest shareholder and the operator of its Nigerian deep water blocks, OML 120 and OML 121, has signed a deed of assignment with Transocean Limited and Nigerian Petroleum Development Corporation Limited (NPDC) for the Sedneth 701 emi-submersible drilling rig to carry the drilling of the Oyo oil well 7.

A statement by Camac Engergy on Monday, disclosed that Sedneth 701 currently under contract with NPDC and operated by Transocean, will be assigned to Allied to drill Oyo well 7 between April and August of 2013.  It noted that Transocean would continue to operate the rig during the assignment period.

Transocean, with over 50 years of experience and 18,700 employees, is the world’s largest offshore drilling contractor.

“We are very pleased that Allied has executed an agreement for Transocean’s Sedneth 701 drilling rig,” Senior Vice President of Exploration and Production, Segun Omidele said.

“This rig has the necessary specifications to achieve Oyo 7 well’s dual objectives of increasing production from the Pliocene and testing the resource potential in the Miocene, and it also provides necessary certainty for our 2013 drilling operations,” he added.

The company had earlier unveiled plans to triple oil production volume from Oyo oil well ‘seven’ from current levels in 2013.

Average daily gross production from the Oyo Field in Nigeria was 2,641 barrels of oil per day during the third quarter of 2012, versus 3,514 barrels of oil per day during the third quarter of 2011.

The company has achieved several critical milestones related to the drilling of Oyo well seven, currently scheduled to spud in the first quarter of 2013, the company said in its third quarter 2012 result released at the weekend.

In October, it announced that Allied had engaged Axxis Petro Consultants Limited (“Axxis”) as project manager for the drilling of Oyo well seven.

Currently Axxis is assisting in acquiring long-lead drilling items from both manufacturers and other operators.

The company also previously announced that Allied had engaged Halliburton Energy Services Inc. (“Halliburton”) as a consultant to provide a feasibility study assessing the complexity and operational risk associated with drilling Oyo well ‘seven’ and executing the dual objectives of increasing production from the currently producing Pliocene reservoir and proving reserves by testing the deeper Miocene reservoir.

According to the company, Halliburton has subsequently provided a study confirming the feasibility of the Oyo well ‘seven’ drilling plan and is working to further refine drilling specifications.

Also in October, the company announced that Allied had contracted Wellstream International Limited (“Wellstream”) to design, engineer, and manufacture the production flow line and riser for the completion of Oyo well ‘seven’ and that Allied had also engaged the subsea engineering firm, Deep Trend Inc. (“Deep Trend”) to work with Wellstream on the appropriate design for the flowline and riser.

Camac Energy is a U.S. based energy company engaged in the exploration, development and production of oil and gas.  The company’s principal assets include interests in OML 120 and OML 121, offshore oil and gas leases in deep water Nigeria which include the currently producing Oyo Oilfield, and six recently acquired exploration blocks in Kenya and Gambia.

The company is currently pursuing further additions to its exploration portfolio in East and West Africa.  The company was founded in 2005 and has offices in Houston, Texas, Nairobi, Kenya, Banjul, Gambia and Lagos, Nigeria.