Dawes Island Oil Field Secures $109m Funding
Dawes Island Marginal Oil Field has secured a $109 million lending facility with Toronto-based REIN Capital to boost its operations. Odjegba Onoriode, the Managing Director of Eurafric Energy, disclosed this in a statement on Monday in Lagos.
According to Onoriode, the funding is a significant financial boost for the development of the Dawes Island marginal field.
He said that the move signals a major step for operator Eurafric Energy, following a recent court ruling that restored the company’s ownership of the asset.
Onoriode disclosed that the financing initiative was backed by prominent Bay Street financier, Michael Wekerley, a co-founder of the well-known Canadian investment bank, GMP Securities.
According to him, the facility was originally processed for Eurafric Energy prior to the asset’s revocation in 2020.
“Following a Federal High Court decision that reversed that revocation, the funding commitment has now been formally reactivated.
“This reflects continued investor confidence in the field’s underlying reserves and commercial viability following extensive technical due diligence conducted before the legal interruption.
“Structured Plan Targets 20,000 BOPD. With the funding in place, Eurafric Energy has outlined a comprehensive development roadmap for Dawes Island Marginal Field,” he said.
He said that the plan prioritises scaled and sustained output over rapid-cycle early oil, underpinned by the newly secured structured financing.
He added that the development strategy included, spudding five new development wells, a phased production ramp-up.
Other development includes the deployment of permanent production and evacuation facilities.
Onoriode said that the medium-term production target is around 20,000 barrels per day.
He said the reinstated facility would cover drilling, completion, field facilities, and necessary working capital to transition the field to expanded production.
He added that beyond the immediate development financing, REIN Capital had disclosed wider plans to position Eurafric Energy for a listing on the Canadian Securities Exchange (CSE).
“Market watchers view the proposed listing as a signal of long-term ambition, a move that will provide enhanced transparency and access to deeper international capital pools.
“It comes at a time when global investors are increasingly seeking exposure to structured African upstream opportunities backed by reserves-based lending frameworks.” Nigeria’s Private Sector Activity Deteriorated in January -Stanbic IBTC
