CAMAC: Early Commencement of Oyo Well Intervention

CAMAC has been notified by its partner, Nigerian Agip Exploration (NAE), that the well intervention planned on the Oyo #5 well, located in the Oyo Field located offshore Nigeria, is scheduled to commence on December 4, 2010 with the mobilization of the Transocean Marianas to the field. The mobilization is commencing earlier than previously anticipated due to the availability of the Marianas, a fourth generation Earl & Wright Sedco 700 design semi-submersible drilling unit that will be performing the intervention. CAMAC Energy acquired a 60% contractual interest in the Oyo Field in April 2010 and NAE is the Oyo Field's operator and a subsidiary of ENI SpA, one of the world’s largest international energy companies.

Following commencement of production from the Oyo Field in December 2009, oil production from the Oyo #5 well has been decreasing due to higher than expected gas production from the well. The intervention program is designed to address this gas breakthrough and improve oil production from the well. The intervention program will include the running of a suite of Schlumberger production logging tools, which will seek to determine the source of gas breakthrough, into the horizontal section of the wellbore. This will be followed by an engineered polymer injection in zones with identified gas breakthrough which is designed to decrease gas production and increase oil flow from these zones. The total work program, from rig up on location, to rig down, is expected to be completed in approximately 35 days.

The well intervention is expected to allow Oyo #5's oil production to increase from approximately 3,500 Bopd currently to approximately 7,500 to 9,500 Bopd for the next 12 months following completion of the intervention, with estimated combined production from the Oyo #5 and Oyo #6 wells to between 9,500 and 11,500 Bopd following the Oyo #5 well intervention. The intervention is also anticipated to provide valuable reservoir information that will assist in the completion design of new drilling in the Oyo Field.

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