Nigeria: FHN Announces 76 Million Barrels Oil Reserves in Ogini, Isoko

ALLAFRICA

DAILY TRUST [21/11/12] 

By Mohammed Shosanya

Lagos — First Hydrocarbon Nigeria Limited (FHN) has announced the discovery of 75.7 million barrels of crude oil in the Ogini and Isoko fields.

The company acquired a 45% interest in the Oil Mining License (OML) 26 portfolio of assets from Shell Petroleum Development Company Joint Venture in December 2011 and raised $280 million of syndicated debt and mezzanine finance to fund the field development and further inorganic growth.

The OML 26 portfolio of assets holds two producing fields (Ogini and Isoko), with oil reserves estimated at 129.3 million barrels and gross contingent resources estimated at 75.7 millionbarrels) and three proven but undeveloped fields (Aboh, Ovo and Ozoro),with an estimated 144 mmboe of gross contingent resources (previous operator'sestimates), as well as a further 615 mmboe of gross prospective resources on the block.

OML 26 also has gas resources of 582 bcf and 1076 bcf (prospective) according to the previous operator's estimates. Constantine 'Labi Ogunbiyi, Chief Executive of FHN said the increase in reserves on the Ogini and Isoko fields is a further testament to the scale of the opportunity onshore Niger Delta.

"The progress we have made optimizing existing production and advancing Field Development Plans at Ogini and Isoko alongside our partner NPDC endorses the strength of our working relationship with our operating partner and demonstrates the potential that a public private partnership model offers for both parties. We look forward to working together with NPDC and delivering on our joint and ambitious plans for production growth over the coming years.

"The Nigerian Petroleum Development Company, the oil and gas exploration and production subsidiary of Nigerian National Petroleum Company is the Operator of OML 26 and works closely in partnership with FHN on the re-development of the assets.