Erin Energy releases Q1 FY16 results

Erin Energy Corporation has released its financial and operational results for the quarter ended 31 March 2016.

First Quarter 2016 and Current Highlights:

- Current production of 10,380 BOEPD          (~8,900 BOPD)

- Successfully re-established production from Oyo-8 well;

- Commenced negotiations on drilling rig contract and long-lead production equipment;

- Reduced operating and capital expenditure by 20%.

Operations Summary

Nigeria

In Nigeria, the Company mobilized the Island Constructor intervention vessel with all the array of services required to execute a deepwater subsea intervention. The vessel started operations in Oyo field on April 25 and completed the replacement of the failed subsurface safety valve on May 3, 2016. The operation was executed on time and on budget. Current production from the Oyo field is 10,380 barrels of oil
equivalent per day (8,900 BOPD). The Company plans further drilling activities in the fourth-quarter of 2016 to increase Oyo field production and further reduce unit operating cost for the asset.

Ghana

In Ghana, the Company and its joint venture partners are continuing discussions with the government on the Expanded Shallow Water Tano Block (ESWT) on options to enhance project economics. Erin Energy is also maturing exploration leads identified in the block and has begun to design the acquisition of a potential 3-D seismic survey tentatively scheduled for Q1 2017.

Kenya

In Kenya, the Company has continued to mature exploration leads identified on its onshore blocks, L1B and L16; and has commenced planning and designing of the next seismic acquisition on these blocks. Erin Energy is actively seeking to farm out a portion of both the onshore blocks and its offshore blocks, L27 and L28. 

Gambia

In The Gambia, Erin Energy recently acquired 1,613 square kilometers of 3-D data on its offshore A2 and A5 blocks. The Company is currently working with an outside contractor to process the newly acquired 3-D seismic data. Seismic data processing is currently in progress and the delivery of the processed 3-D seismic data is expected Q3 2016. Upon receipt of the processed data, the Company will create a high-graded inventory of drillable prospects.

Financial Summary

For the first-quarter 2016, revenues were $4.9 million, compared to nil for the same period 2015. The Company reported a net loss of $32.4 million or $0.15 per basic and diluted share, compared to a net loss of $33.1 million or $0.16 per basic and diluted share for the same period 2015.

Oyo field production averaged 1,800 barrels per day, compared to no production during the first quarter 2015. During the first-quarter 2016, The Company lifted and sold 161,000 net barrels at an average price of $30.54 per barrel. Subsequent to quarter end, Erin Energy lifted and sold an additional 140,000 net barrels at an average price of $39.95 per barrel.

Erin Energy is a JSE listed oil and gas exploration and production company with operations offshore Nigeria, Ghana, Kenya and Gambia.