Tuskar Resources has signed a contract with Green Sea, a subsidiary of Brovig Offshore, to lease a floating production platform for use on the Obe Field in offshore Nigeria. Production is planned to commence in the fourth quarter of this year at an expected level of 4,000 barrels of oil per day.
Tuskar said there are further development options under construction, with the aim of eventually increasing production to 8,000 barrels of oil per day.
The costs associated with initial production from the Obe-4 well will be funded by Brovig, repayable later out of oil production revenues, of which Tuskar's share is anticipated to be at least 75 per cent.
Tuskar said that, at current oil prices, the development will provide it with positive cashflow after production expenses.
Tuskar's managing director, Mr Gene Manson, said the development should secure the company's future and "completes the first step towards our long-term goal of being a significant player in oil and gas exploration and production in west Africa, while also assisting Cavendish to become a local oil-producing company".
