Erin Energy (ERN) secured funding commitment to drill its Miocene exploration well, which it plans to spud during this quarter.
The first option well of the drilling contract has been exercised with the drilling contractor following the funding commitment, it said Wednesday.
The company also successfully completed the drilling phase of the Oyo-9 well. Results indicate the presence of the target channel system and 85.3 feet of net oil sand.
The results are in line with predictions and confirm field extension to the western part of the field. Both the engineering and manufacturing of the subsea equipment are at various stages of completion.
The company, however, suspended the completion and hookup of the development program, due to “chronic delays in the release of the remaining funds and improper interference by the guarantor of the loan facility, as agreed to between the bank and Erin for the project. The Pacific Bora drilling rig and all drilling services has been “demobilized,” it said.