Heritage Oil Plc, an independent upstream exploration and production company with headquarters in London, says gross production from its Oil Mining Lease (OML 30) in Nigeria has returned to rates of over 35,000 barrels of oil per day (bopd).
The company stated that all of the key fields are in production as the temporary factors which caused lower than expected production levels over the first quarter of the this year have been successfully addressed.
Tony Buckingham, Chief Executive Officer, said, in a statement on Wednesday: “We are delighted that production levels are back over 35,000 bopd gross for the licence and that the issues encountered earlier in the year have been resolved.
The work schedule is progressing in line with our update last month and we are on track to meet our production target for the full year.”
According to the statement, work is underway with the objective of optimising existing facilities, including gas lift, which will enable production rates to increase in line with management forecasts during the remainder of the year. It is expected that, as previously announced, 2013 gross production from OML 30 will average 35,000 bopd.
The company said the drilling of new wells, planned to commence in the second half of 2014, should provide a significant increase to production with the longer term potential estimated at approximately 300,000 bopd gross, adding that infrastructure was in place with capacity of 395,000 bpd.
It added that separately, engagement with the local communities and the establishment of a long term Global Memorandum of Understanding with them was continuing.
The company, in its results for the twelve months ended 31 December 2012 released recently, had said a sum of $234.5 million had been generated from the recently acquired OML 30.
Last year, the company acquired an interest in OML 30 through Shoreline Natural Resources Limited whose ownership interests are held by Heritage Oil SNR (Nigeria B.V.), a wholly owned subsidiary of Heritage and a local Nigerian partner, Shoreline Power Company.
According to Heritage, the acquisition provided a material change in proved and probable reserves for Heritage, which RPS Energy Consultants Ltd independently estimate at 412 million barrels, for interests in Nigeria and Russia, as at 31 March 2012.
Shoreline made a cash payment of $52.5 million, in April 2013, to reduce the bridge loan to $497.5 million, the company had said.
