Erin Energy Announces Third Quarter 2016 Results

Erin Energy Corporation ("Erin Energy" or the "Company") (NYSE MKT:ERN) (JSE:ERN) announced today financial and operational results for the quarter ended September 30, 2016. The Company also provided an update on its upstream operations in Africa.

Third Quarter 2016 Highlights:
  • Realized revenues of $28.6 million;
  • Achieved net average daily production of 6,100 barrels of oil per day (bbls/d);
  • Lifted and sold 583,000 net barrels of oil.

Segun Omidele, Chief Executive Officer commented: "In the third quarter, our strategy remained focused on how restructuring our balance sheet and growing our production. We had success in lowering some of our outstanding AP balances and our effort to raise additional capital for our next drilling campaign is progressing well with the expectation that drilling activities will commence soon."

Operations Summary

In Nigeria, the Company continues to make progress in preparation for the next drilling campaign, which is planned to commence later this quarter or early 2017 depending on rig availability. Erin Energy has secured all required permits to drill and the operational planning process is currently being finalized.

A key part of the Company's planned drilling campaign is the drilling of an additional development well, the Oyo-9 well, located within the central area of the Oyo field in Oil Mining Lease 120, offshore Nigeria. Oyo-9 is planned to be tied-back to the Oyo field production facility via planned new subsea infrastructure. This phase of development, expected to be completed in the second quarter of 2017, will increase field production by approximately 6,000 to 7,000 barrels of oil per day (bopd).

In July 2016, the Oyo-7 well was shut-in as a result of an emergency shut-in of the Oyo field production facility (FPSO). The well was unable to come back online naturally due to high water production and resulted in a temporary loss of approximately 1,400 bopd. The Company attempted an intermittent nitrogen lift gas injection from the facility to attempt to bring the well back on production, which was not fully implemented due to some operational constraints. Erin Energy is now looking at another nitrogen lift attempt and other technical options that can provide continuous lift assistance for well startup.

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