HOUSTON–(BUSINESS WIRE)–Erin Energy Corporation (“Erin Energy” or the “Company”) (NYSE American:ERN) (JSE:ERN) today refers to the news release of its joint venture partner, FAR Limited (FAR), dated February 26, 2018 reporting that a subsidiary of Petroliam Nasional Berhad (PETRONAS) has signed a Farm-out Agreement (FOA) with FAR.
The FOA, expected to be completed March 31, 2018, assigns a 40% interest in the A2 and A5 offshore blocks in The Gambia to PETRONAS with FAR retaining operatorship and a 40% interest in each block. Erin Energy has a 20% interest in blocks A2 and A5 following its farm-out to FAR in 2017.
As part of the FOA, PETRONAS will fund 80% of the joint venture’s Samo-1 well up to a US$45 million cap. The well is expected to be drilled in late-2018 and will be the first exploration well offshore The Gambia since 1979. FAR has previously announced that it estimates the Samo Prospect to contain prospective resources of 825 million barrels oil (best estimate, 100% basis, unrisked).(1)
For more information on the FOA, please see FAR’s news announcement at: http://far.live.irmau.com/irm/PDF/2364_0/PETRONASjoinsFARtodrilloffshoreTheGambia
For more information on PETRONAS, please visit www.petronas.com.my
About Erin Energy
Erin Energy Corporation is an independent oil and gas exploration and production company focused on energy resources in sub-Saharan Africa. Its asset portfolio consists of 5 licenses across 3 countries covering an area of 6,100 square kilometers (~1.5 million acres), including current production and other exploration projects offshore Nigeria, as well as exploration licenses offshore Ghana and The Gambia. Erin Energy is headquartered in Houston, Texas, and is listed on the New York and Johannesburg Stock Exchanges under the ticker symbol ERN.
For more information about Erin Energy or to request a hard copy of the Company’s most recent complete audited financial statements free of charge, please call +1 713 797 2940 or visit www.erinenergy.com.
(1)Prospective Resource Estimates Cautionary Statement
With respect to the Prospective Resource estimates contained within this report, it should be noted that the estimated quantities of Petroleum that may potentially be recovered by the future application of a development project may relate to undiscovered accumulations. These estimates have an associated risk of discovery and risk of development. Further exploration and appraisal is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. The Prospective Resource estimates provided in this report are Low Estimate, Best Estimate and High Estimate and represent that there is a 90%, 50% and 10% probability respectively that the actual resource volume will be in excess of the amounts reported.
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, concerning activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Although the Company believes the expectations reflected in these forward-looking statements are reasonable, they involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect.
The Company’s actual results could differ materially from those anticipated or implied in these forward-looking statements due to a variety of factors, including the Company’s ability to successfully finance, drill, produce and/or develop the wells and prospects identified in this release, and risks and other risk factors discussed in the Company’s periodic reports filed with the Securities and Exchange Commission. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. You should not place undue reliance on forward-looking statements, which speak only as of their respective dates. The Company undertakes no duty to update these forward-looking statements.
Erin Energy Corporation
Lionel McBee, +1 713-797-2960
Director, Investor Relations