The United Kingdom-listed Heritage Oil has announced increased production from its Oil Mining Lease (OML) 30 concession, onshore Nigeria.
In an operational update released yesterday, the company said year-to-date production from OML 30 had averaged approximately 15,600 barrels of oil per day (bopd), about 17-per cent greater than the fourth quarter of 2013 production.
Heritage said there had been three oil lifting to date in 2014 and that these would take place on a monthly basis going forward.
The company also revealed that installation of gas compressors, refurbishment of equipment, statutory inspection and testing of all pressure vessels, and inspection of all wellheads and pipelines have continued to support well optimisation.
These developments, according to the company, should result in further increases in production, as commencement of development drilling remains on track for the second half of the year.
Heritage recently acquired a stake in a string of Nigerian oilfield assets, OML 30, through its interest in Shoreline Natural Resources in a deal worth $850 million.
The oil block, located onshore in the Niger Delta and formerly owned by Shell Petroleum Development Company of Nigeria (SPDC) contains eight producing oilfields and proved and probable reserves of more than 1.1 billion barrels.
In November 2013, Heritage announced that Shoreline had been in discussions with relevant government departments in Nigeria about its tax status.
The company said discussions with the Nigerian government about the tax status of Shoreline Natural Resources – the joint venture through which it (Heritage) operates the OML 30 had been concluded successfully.
Heritage Chief Executive Officer, Tony Buckingham, commented in the company’s statement that the “OML 30 operations are progressing in line with expectations, providing significant revenues and cash flow to Heritage which should enable the company to achieve its goal of paying a sustainable dividend stream to shareholders.”
He added: “Our interest in OML 30 will be used as a platform to grow and obtain additional interests in Nigeria and in other core areas.”
The company, also last year, entered into a joint venture with Bayelsa Oil Company to establish an indigenous Nigerian oil company called Petrobay Energy, in a deal that the company said would allow it to be a “significant contributor to the future development of Nigeria’s oil and gas industry.
Heritage will hold a 45-per cent equity interest in Petrobay, which, it said would look to acquire production, development and exploration assets from international oil companies operating in Nigeria.