Tuesday, October 16, 2012

CAMAC Energy, Inc. (CAK) Tags Wellstream and Deep Trend to Supply Flowline/Riser Equipment, Services for New Offshore Well(s) in Nigeria

Camac Energy, the Houston-headquartered oil and gas E&P with a significant position in deep water Nigerian offshore leases (currently producing Oyo Oilfield), as well as more recently acquired blocks in Kenya and Gambia, reported today that operator of the company’s deep water Nigerian blocks (OML 120 and OML 121) and an affiliate of CAK’s largest shareholder, Allied Energy PLC, has contracted wholly-owned GE Oil & Gas subsidiary, Wellstream International Ltd., to make the production flow line and riser for the new Oyo #7 well (to be spud in Q1 2013).

The extremely well known design, engineering, and manufacturing work done in robust flexible risers and flow lines by Wellstream, which operates its own facilities in the UK as well as in Brazil, made the choice an easy one for CAK. When it comes to moving oil and gas in the subsea production field, there are few firms with the kind of rich execution history possessed by Wellstream, which is expected to deliver the 11,467 feet of six-inch flow line and 3,625 feet of six-inch riser by July of next year. This hardware is needed to tie the new well into the floating production, storage, and offloading unit. The deal also comes with an option for Allied to buy a duplicate set of the same equipment for the next planned well, the Oyo #8 (Sept 2013).

Taken alongside the engagement of Deep Trend, Inc. to handle subsea equipment management services, as well as overall support for definition/planning on the Oyo #7 tie backs (and likely subsequent), we have a complete implementation vector for the planned well roll out at CAK’s primary assets in Nigeria. Engaging some of the top firms in subsea engineering and field services spell success for the future of CAK’s drive to produce energy from Africa’s rich hydrocarbon basins. It is this track record of establishing networks within the E&P sector that have led to so much momentum in West Africa (and East as well).

Senior VP of E&P at CAK, Segun Omidele, hailed the order of these two “critical long-lead” items for the company’s Oyo operations as a real milestone, projecting great success for the tie-back of production from the new well and expressing confidence over having materials on hand for Oyo #7 in advance. Omidele roundly confirmed management’s forecast for increased 2013 production numbers out of the Oyo field and assured shareholders that the engagement of Wellstream and Deep Trend, whose expertise will be leveraged to achieve an exceptional value for infrastructural roll out, would seal the deal nicely.

To learn more about CAMAC Energy, visit www.CamacEnergy.com

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