HOUSTON, TX — (Marketwired) — 09/29/14 — CAMAC Energy Inc. (“CAMAC Energy” or the “Company”) (NYSE MKT: CAK) announced today that an updated independent assessment of the Company–s prospective resources for four offshore Nigeria prospects located within Oil Mining Leases (“OMLs”) 120 and 121 by (“D&M”) has increased the Company–s unrisked P50 recoverable resources from 537 million barrels of oil (“MMbbl”) to 2,377 MMbbl in four of its top exploration prospects.
The independent assessment was prepared in accordance with the Petroleum Resources Management System (PRMS) approved in March 2007 by the Society of Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists, and the Society of Petroleum Evaluation Engineers. The effective date of the report is September 15, 2014.
The unrisked prospective resources volumes for the four prospects covered by the D&M report are summarized in the following tables. A copy of the complete D&M report can be found on the Investors section of the Company–s website at .
Given the large quantity of prospects in CAMAC Energy–s portfolio, these estimates reflect only a select portion of the Company–s prospective resources offshore Nigeria, and do not include any resource estimates for the Company–s assets in Ghana, Kenya, and Gambia. CAMAC Energy is operator and owns a 100% working interest in OMLs 120 and 121.
Drilling locations have been identified on each of the four prospects, and technical work is continuing to allow for the first exploration well to be drilled in the first half of 2015. The wells will target the Miocene formation, which has been successfully demonstrated to be a prolific oil producing layer in deepwater Nigeria. The exploration drilling program will be carried out utilizing either the drillship Energy Searcher, which is currently under contract drilling the Oyo-7 and Oyo-8 development wells, or a second rig to be contracted. The exploration program will be funded with future cash flows from the Oyo-7 and Oyo-8 development wells, cash on hand, and available credit facilities.
Kase Lawal, Chairman and Chief Executive Officer, commented: “The increase in P50 resources on these four prospects and what that represents in term of the potential of our deepwater Nigerian assets is monumental. These results have been achieved through a combination of both the focused efforts of the skilled geoscientists on our team who, bring tremendous local knowledge of the basin and who have played key roles in the discovery of other giant fields within the vicinity of OMLs 120 and 121; and the application of superior techniques that have led to successful discoveries in the Nigerian deepwater by other operators. The team has spent considerable time developing the regional framework, utilizing the latest in geoscience and enhanced quantitative interpretation techniques, to define these four high-impact prospects with combined unrisked recoverable P50 resources of almost three billion boe. This is a near fivefold increase from our previous assessment of these prospects. Moving forward, we believe these resources, coupled with substantial near-term increases in production, will deliver significant value for our shareholders.”
CAMAC Energy will host a conference call on Tuesday, September 30, 2014 at 10:00 a.m. CT (11:00 a.m. ET) to discuss the resource update. The dial-in number is 877-317-6789 in the United States or 412-317-6789 internationally.
CAMAC Energy is an independent oil and gas exploration and production company focused on energy resources in Africa. Its asset portfolio consists of nine licenses across four countries, including current production and other exploration projects offshore Nigeria, as well as exploration licenses offshore Ghana, Kenya, and Gambia, and onshore Kenya. CAMAC Energy is headquartered in Houston, Texas. For more information, visit .
This press release and the D&M report refer to prospective resources, including recoverable resources and resources in place. The Securities and Exchange Commission (“SEC”) permits oil and gas companies, in their filings with the SEC, to disclose only “reserves,” as that term is defined under SEC rules. Prospective resources are those quantities of petroleum estimated, as at a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Investors should not assume there will be any discovery associated with prospective resources, or that any discovery will be economically drillable or ever be upgraded into reserves.
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, concerning activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. Although the company believes the expectations reflected in these forward-looking statements are reasonable, they involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. The company–s actual results could differ materially from those anticipated or implied in these forward-looking statements due to a variety of factors, including the company–s ability to successfully finance, drill and develop the prospects identified in this release and risks and other risk factors discussed in the company–s periodic reports filed with the Securities and Exchange Commission. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. You should not place undue reliance on forward-looking statements, which speak only as of their respective dates. The company undertakes no duty to update these forward-looking statements.
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Christopher D. Heath
713-797-2945
Lionel C. McBee
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