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Erin Energy Corp. (ERN) Building Shareholder Value through Exploration and Development of Assets in Sub-Saharan Africa

Erin Energy is an independent oil and gas exploration and production company focused on energy resources in sub-Saharan Africa. The company’s asset portfolio includes nine licenses across four countries covering an area of approximately 16,600 square miles, including current production and exploration projects offshore Nigeria, as well as exploration licenses offshore Ghana and the Gambia and both offshore and onshore Kenya. By expertly managing its investments and on-going operations, Erin Energy is able to combat current market conditions by limiting capital exposure while maintaining economic efficiency in its operations and maximizing investment value.

In recent months, the company has made tremendous progress in advancing its exploration and development programs. On its project in Nigeria, Erin Energy successfully tied in two wells, Oyo-7 and Oyo-8, in the Oyo field. This achievement preceded the commencement of production in May. In total, the two wells accounted for production of more than 450,000 barrels of oil in the second quarter of 2015, giving the company considerable momentum as it looks to increase its production capacity moving forward.

“Bringing the Oyo-7 and Oyo-8 wells on production were significant milestones in the company’s history,” Kase Lawal, chairman and chief executive officer of Erin Energy, stated in a news release. “Growth is at the center of Erin Energy and this achievement is just the beginning for us.”

The company’s recent progress in the development of its Nigeria asset has been accompanied by equally noteworthy progress on other assets in its portfolio. On August 21, Erin Energy announced that it had received approval from the government of Kenya to enter the first additional exploration period on its onshore blocks, L1B and L16. According to the terms of this approval, the company will be required to acquire, process and interpret approximately 116 square miles of 3D seismic data and drill one exploration well on each block within the next two years.

“We are very pleased to begin the next phase of exploration in Kenya,” continued Lawal. “Our team is greatly encouraged by the results of our exploration efforts thus far, and excited by the significant hydrocarbon potential we see on the blocks.”

Since the start of oil production, the company’s wells have consistently outperformed pre-drill projections. As of August 1, the combined production rate of Oyo-7 and Oyo-8 was approximately 13,100 barrels of oil per day, giving Erin Energy a strong channel with which to generate revenue while continuing to expand its operations. Look for the company to build on these strong results as it progresses exploration efforts across its sizable asset portfolio in the months to come.

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