AOI Africa Oil hires drilling rig from Energi Tata Canada Stockwatch February 27, 2008
Africa Oil Corp (TSX-V:AOI)
Shares Issued 17,267,412
Last Close 2/26/2008 $5.90
Wednesday February 27 2008 - News Release
Ms. Sophia Shane reports
AFRICA OIL CORP.: OPERATIONS UPDATE
Africa Oil Corp has entered into a contract for a drilling rig to begin drilling in its Puntland concessions during 2008. The contract effective date is Feb. 19, 2008, and covers the drilling of two wells with a two-well option. It is a standard day rate contract and was negotiated at competitive rates. Drilling will begin before the commencement deadline date of Aug. 1, 2008.
The contract was signed with Energi Tata Persada Pte. Ltd. (ETP), a Singaporean registered company. ETP is a wholly owned subsidiary of Catur Khita Persada, an Indonesian oil and gas service company. It owns four land drilling rigs and perform extensive turnkey drilling projects in Indonesia. ETP has employed Roger Boyco to manage the Puntland project. He has over 30 years experience managing land drilling projects around the world.
The ETP rig No. 3 is a brand new package currently being constructed in the Shengli fabrication plant in Dongying, China. Shengli currently have nine drilling units under construction for international drilling contractors. The ETP rig is scheduled for delivery in mid-May, 2008, and will immediately mobilize to Jebel Ali, Dubai. The mobilization into Somalia will be via chartered vessel and the current plan is to spud the first well during July.
The ETP No. 3 is a 1,500-horsepower (HP) unit, equipped with the latest drilling technology, including a top drive and three 1,600 HP pumps. The camp facility will house up to 150 persons and will also be brand new. ETP will also provide the trucking and hoisting equipment as part of its contractual obligations.
President and chief executive officer, Rick Schmitt, commented, "I am delighted that we have been able to secure a rig which is fully capable of conducting our drilling campaign."
