Introduction

The block is located in the northern onshore depo-belt of the Niger Delta and is operated by Pillar Oil Limited. The block contains one producing field, Umuseti, which came onstream in May 2012 and is currently producing from three development wells.

There are 15 identified oil bearing reservoirs in Umuseti with production currently coming from four of these reservoirs. Further development drilling will be required to drain the remaining reservoirs. The Igbuku field contains predominantly gas and condensate and is currently undergoing appraisal prior to development. The block also contains four satellite exploration leads, namely Igbuku North, Igbuku Deep, Umuseti East and Umuseti North-East, which the joint venture partners intend to further evaluate. Facilities on the block include a 5,000 bopd Early Production Facility (‘EPF’) and two 20,000 bbls crude storage tanks. Umuseti production is evacuated to a Group Gathering Facility (‘GGF’) where it is metered and thereafter exported either via Agip’s Kwale facilities to the Brass terminal or via NPDC’s pipeline to Forcados.

Past Activities

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.

Current Activities
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.

2018 activities: Igbuku 3D seismic acquisition & interpretation,Unitisation discussions in relation to the Ashaka field on adjacent OML 60 (NAOC operated).

2019 outlook: Preparation work for development of the Igbuku field; Concept selection and FEED.

Operator

Pillar Oil Limited(Nigeria):Operator with 60% interest.

Seplat Petroleum Development(Nigeria): 40% interest.