|By PR Newswire||
|October 1, 2013 02:00 AM EDT||
CALGARY, Alberta, October 1, 2013 /PRNewswire/ --
Caracal Energy Inc. ("Caracal Energy" or the "Company") today announced its first joint-venture oil shipments from the Badila field in Chad.
On June 9, 2013, His Excellency President Idriss Deby Itno held a ceremony to inaugurate the Company's production facilities and flowed first oil into those facilities.
Yesterday, September 30, the Company commenced oil production from the Badila field into its transportation system that connects Badila to the main export line operated by TOTCO/COTCO, referred to as the Export Transportation System ("ETS"). The Company will initially produce oil to fulfill the joint venture's share of the ETS line-fill, which is estimated at just over 450,000 barrels, after which it can accumulate oil for sale. Initial production is coming from the Badila-1 and Badila-2 wells, and additional Badila wells will be tied in for production in coming months as processing capacity is increased.
The 30-inch diameter ETS, which will carry the joint venture's oil production to the Atlantic Ocean port of Kribi in Cameroon, has the capacity to transport 250,000 barrels of oil per day, of which approximately 150,000 barrels per day is currently unused.
Caracal's Joint-Venture partners are Société des Hydrocarbures du Tchad, a government-owned entity, and GlencoreXstrata plc.
"First oil production is a milestone for our Joint Venture following the ceremonial inauguration of our production facilities by His Excellency President Idriss Deby Itno on June 9, 2013. We are very pleased to begin producing into the TOTCO/COTCO ETS, with first revenue expected in Q1 2014. Our development drilling and construction of additional facilities and transportation infrastructure has continued over the summer, and we are on schedule to provide additional production from Badila and Mangara fields in the coming months," commented Gary Guidry, President and Chief Executive Officer.
About Caracal Energy Inc.
Based in Canada, Caracal Energy Inc. is an international exploration and development company focused on oil and gas exploration, development and production activities in the Republic of Chad, Africa. In 2011, the Company entered into three production sharing contracts ("PSCs") from the government of the Republic of Chad. These PSCs provide exclusive rights to explore and develop reserves and resources over a combined area of 26,103 km2 in southern Chad. The PSCs cover two world-class oil basins with development opportunity, oil discoveries, and numerous exploration prospects.
The Company trades on the London Stock Exchange under the symbol CRCL.
Certain information in this press release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking information and statements are often, but not always, identified by the use of words such as "anticipate", "seek", "believe", "expect", "hope", "plan", "intend", "forecast", "target", "project", "guidance", "may", " might", "will", "should", "could", "estimate", "predict" or similar words or expressions suggesting future outcomes or language suggesting an outlook. Specific forward looking statements included in this press release include comments related to the expected timing of pipeline completion and facilities advancement; potential production rates; timing of the pipeline-fill and tie-in for production; expected completion of well servicing operations; additional development of the Mangara and Badila field; expected drilling of the other prospects; and other matters. Subject to applicable securities laws, the Company does not undertake any obligation to revise this forward-looking information or these forward-looking statements to reflect subsequent events or circumstances. The forward-looking information and statements contained in this press release are expressly qualified by this cautionary statement. Well-test results and production rates are not necessarily indicative of long-term performance or of ultimate recovery.
For further information:
Caracal Energy Inc.
Gary Guidry, President and Chief Executive Officer
Trevor Peters, Chief Financial Officer
Longview Communications - Canadian Media Enquiries
FTI Consulting - UK Media Enquiries
Ben Brewerton / Ed Westropp