The agreement encompasses an initial term of 5 years beginning Jan. 1, with an automatic extension for an additional 2 years unless terminated by Camac with prior notice. The parties are working toward executing a definitive agreement on or before Jan. 31.
The Armada Perdana FPSO can process as much as 40,000 b/d of oil and has a storage capacity of 1 million bbl. It currently supports production of 2,000 b/d of oil and 40 MMcfd of natural gas from the Oyo field offshore Nigeria in OML 120.
Camac has proceeded with the roadshow presentation to institutional investors for the proposed $300 million bond offering that will provide the company with the capital to complete Oyo-7 and drill and complete Oyo-8 and 9. Pro forma closing of the Allied Energy PLC transaction, these three wells will bring online a total of 21,000 b/d of oil net.
The Oyo-7 well encountered oil and gas in the producing Pliocene reservoir in October (OGJ Online, Oct. 16, 2013), and in November confirmed the presence of oil in Miocene (OGJ Online, Nov. 13, 2013).