CAMAC Energy Inc. Announces Agreement to Purchase Production Flowline and Riser for Oyo #7 Well
HOUSTON, Oct. 16, 2012 /PRNewswire/ -- CAMAC Energy Inc. (NYSE MKT: CAK) ("the Company") today announced that Allied Energy PLC ("Allied"), an affiliate of the Company's largest shareholder and the operator of its Nigerian deep water blocks, OML 120 and OML 121, has contracted Wellstream International Limited ("Wellstream") to design, engineer, and manufacture the production flowline and production riser for the completion of the Oyo #7 well currently scheduled to spud in the first quarter of 2013.
Wellstream, a wholly-owned subsidiary of GE Oil & Gas, operates manufacturing facilities in Newcastle, United Kingdom and Niteroi, Brazil and specializes in the engineering and manufacture of high-quality flexible risers and flowline products for oil and gas transportation in the subsea production industry. Wellstream is scheduled to deliver the 3,495 meters of six inch production flowline and 1,105 meters of six inch production riser to the Oyo field in July 2013, where it will be used to tie the production from Oyo #7 to the floating production, storage and offloading unit. Allied also has an option to purchase and receive a duplicate set of materials for its follow up production well, Oyo #8, by September 2013.
Allied has also engaged the subsea engineering firm, Deep Trend Inc. ("Deep Trend") to provide subsea equipment management services, working closely with Wellstream on the design of the subsea flowlines and risers. Deep Trend will also provide broader subsea system engineering support for the definition and planning of the Oyo #7 tie backs.
"The contracting of Wellstream and the ordering of the production flowline and production riser, two critical long-lead items, are very important milestones for the upcoming Oyo well," said Senior Vice President of Exploration and Production, Segun Omidele. "By ordering the materials now and leveraging the expertise of both Wellstream and Deep Trend, we are confident we will have the right subsea equipment to successfully tie-back production from Oyo #7 and increase Oyo field production in 2013."
About CAMAC Energy Inc.
CAMAC Energy Inc. (NYSE MKT: CAK) 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 and Lagos, Nigeria.
This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, are "forward-looking statements," including statements regarding the Company's proposed transactions, business strategy, plans and objectives and statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "will," "should," "believes," "expects," "anticipates" or similar expressions, and involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of their respective dates. Risks and uncertainties regarding the transactions described herein include the possibility that the schedule for drilling may be delayed due to unavailability or delays in procurement of necessary equipment and materials. In addition, the Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of other factors including those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission ("SEC"). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
CAMAC Energy Inc.
Cristy Taylor, 713-797-2940
Liviakis Financial Communications, Inc.
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