Assala Energy increased production of the Shell assets it bought in Gabon from 40,000BOPD to 55,000BOPD in the space of two years.
The London headquartered company claims it installed new equipment and brought down the cost per barrel to $12.
It is hoping to ride the storm of steep drop in prices, exacerbated by COVID-19, even with all the volatility.
Assala pumped $60Million into the five acreages in 2018 and spent $240Million more in 2019, in the process, drilling 20 new wells and optimizing 60 existing wells.
It had a war chest of $300Million for 2020, of which it had spent $70Milion in the first quarter alone.
So what will happen now?
If it survives the next 12 months, its plan is to continue from where it stopped.
The company was raring to go before COVID-19 happened. In late 2019 it acquired three onshore exploration licences from the Gabonese authorities: Mutamba-Iroru II, Nziembou II and Ozigo II, in addition to the five licences it purchased from Shell: Rabi Kounga II Toucan II Bende M’Bassou Totou II, Koula/Damier and Gamba/Iyinga. It also holds interests in four non-operated licences (Atora, Avocette, Coucal and Tsengui.
This story was originally published, for the competitive benefit of paying subscribers, in the May 2020 issue of the monthly Africa Oi+Gas Report.