CAMAC Energy is a Texas-based energy exploration, development, and production company, with oil and gas interests in Nigeria and China. Their Nigerian interests are in OML 120 and 121, offshore oil leases in deepwater Nigeria that started production from the Oyo Field in December of 2009. In China, the company has a 100% interest in the Zijinshan Block gas asset located in Shanxi Province.
The company just completed a conference call for investors, discussing recent events and future strategy, with presentations by the following:
•Dr. Kase Lawal (Chairman & CEO)
•Edward Caminos (Sr. VP & CFO)
•Alan Halsey (Sr. VP of Exploration & Production)
One of the key points covered by the call was the fact that Dr. Lawal would continue as acting CEO for the next 12 months, and has, in support of this, resigned from his executive management roles at other related companies. A search for a new CEO will begin in earnest next year, and will be led by board members Dr. Lee P. Brown, Hazel R. O’Leary, and John Hofmeister. The move was determined to be in the best interest of shareholders, and was intended to provide enough time to identify the best individual to lead CAMAC into the future.
Dr. Lawal went on to talk about the company’s strategy, and their continuing efforts to broaden their portfolio and to develop OML 120 and 121 in Nigeria, working closely with Nigerian Agip Exploration Ltd., a subsidiary of Italian oil company Eni and the technical operator of the field. Ongoing studies should help determine the viability and locations of potential development wells for the field. OML 120 and 121 represent a landmark asset for CAMAC, with soil reports indicating gross oil resources of 627 million barrels, with a high potential estimate of 2.2 billion barrels, and with undiscovered oil estimates as high as 6.3 billion barrels. Of the 8 wells drilled in OML 120 and 121, all have identified hydrocarbons, with no dry wells. The company is working hard with NAE to put in place a more aggressive timeline, with the expectation to communicate a path forward by the end of the 4th quarter.
Edward Caminos summarized financial results for the 2nd quarter, ended in June, with the company reporting a net income of $5.7 million. In June, there was a lifting of roughly 600,000 barrels of crude oil, with a realization of $112.83 per barrel, though the company’s gross share of this was approximately 221,000 barrels. CAMAC’s balance sheet, as of June 30, showed cash and cash equivalents of $11.2 million, with an accounts receivable of $28.2 million. The only debt is a $25 million credit facility provided in June by Allied Energy.
Alan Halsey spoke about the unique opportunity that exists now in West Africa, where major oil companies are looking to divest some of their assets, opening the door for indigenous companies, especially where governments are interested in having a partnership with such companies. He indicated that the oil field has been producing at the rate of approximately 3,650 barrels of oil per day gross from the two wells Oyo 5 & 6, and that they are working to accelerate the timeline for oil field development. In terms of China, the company’s exploration program continues in partnership with PetroChina. The original exploration program was intended to target coalbed methane, but has now expanded to include tar sands and even shale targets.
For additional information, visit the company’s website at CamacEnergy.com
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