OPERATIONS IN DETAIL
The Umuseti/Igbuku field complex has two proven oil and gas assets (Umuseti and Igbuku) and four identified satellite prospects (Umuseti-North East, Umuseti-East, Igbuku-West and Igbuku-North).
Between 1966 and 1982, 5 wells were drilled by Elf Nigeria within the farm-out area. 3 of these, Umuseti-1, Umuseti-3(Ex-Obodugwa-3) and Igbuku-1, encountered hydrocarbons. With 3-D seismic coverage, initial Proven + Probable reserve estimates were in the range of 10 to 20 million barrels of liquids and 200 to 400 billion cubic feet of natural gas.
Following the handover of the Umuseti/Igbuku field complex from Elf Nigeria to the Company, a Farm-out Agreement was signed with Elf/NNPC on 30th September, 2004.
In March 2009, Umuseti-3 was re-entered and crude oil produced into a Pillar Oil owned Early Production Facility (EPF), transported via a Pillar Oil owned 6.5 km pipeline into a jointly owned Group Gathering Facility (GGF) at Umusadege for metering, and exported through Agip’s Brass terminal via Agip’s facilities in Kwale.
Production from Umuseti-3 was temporarily suspended in October 2010. Plans are in place to revisit it in 2013/14.
In January 2011, the Company raised $28 million to drill Umuseti-2 and commenced preparation towards drilling Umuseti-2 in February 2011. Between December 2011 and April 2012, Umuseti-2 was drilled to a total depth of 12,898 feet along hole.
Results from the drilling indicate an increase in reserve estimates to between 20 and 40 million barrels of liquids, and 250 to 500 billion cubic feet of natural gas.
Production commenced in May 2012, at a controlled rate of 2,000 to 2,500 barrels of oil per day (due to evacuation facility constraints) into the existing EPF via a Pillar Oil owned 3.5 kilometer flowline.