Eland Oil & Gas PLC Opuama-7 and Opuama-8 Update (7553V)
November 07 2017 - 2:00AM
UK Regulatory
TIDMELA
RNS Number : 7553V
Eland Oil & Gas PLC
07 November 2017
7 November 2017
Eland Oil & Gas PLC
("Eland" or the "Company")
Opuama-7 and Opuama-8 Update
Eland Oil & Gas PLC (AIM: ELA), an oil & gas production
and development company operating in West Africa with an initial
focus on Nigeria, is delighted to announce that its joint-venture
subsidiary Elcrest Exploration and Production Nigeria Ltd
("Elcrest"), has successfully handed over the Opuama-7 well to the
Opuama field production team and the well is currently flow testing
into the production facilities and on to export.
Under the regulatory guidelines the Opuama production team are
conducting a Maximum Efficient Test ("MER Test") incrementally
testing the well at increasing choke sizes. The most recent test on
a 40/64" choke, produced 6,700 bbls of oil per day on an
extrapolated basis. The Opuama production team will continue the
MER test up to a 48/64" choke, following which the Company will
update the market further when full testing is complete, and
production is stabilised. However, following the recent results it
is expected that stabilised initial production from Opuama-7 will
exceed the previous guidance of gross 5,900bopd.
Furthermore, following the successful completion of Opuama-7
side-track, the OES Teamwork Rig was mobilised to the Opuama-8
drill site and has since spudded the Opuama-8 infill well. Drilling
is expected to be completed in December, with first oil from
Opuama-8 of between 5,000 and 7,000bopd (gross) expected before the
end of the year.
George Maxwell, CEO of Eland, commented:
"We are incredibly pleased to announce the successful completion
of the Opuama-7 sidetrack and the strong results from flow testing
the well. The early results for initial production look to be
beyond our previous expectations and will lead to a significant
increase in Elcrest's revenues and free cash flows.
Following this significant success, together with our partner
NPDC, we now move our focus to the Opuama-8 well and an anticipated
further increase in production of 5,000 to 7,000 bopd, which once
successful will make the Company one of the largest oil producers
on AIM."
For further information:
Eland Oil & Gas PLC (+44 (0)1224 737300)
www.elandoilandgas.com
George Maxwell, CEO
Ronald Bain, CFO
Finlay Thomson, IR
Canaccord Genuity Limited (+44 (0)20 7523 8000)
Henry Fitzgerald O'Connor / James Asensio
Panmure Gordon (UK) Limited (+44 (0)20 7886 2500)
Adam James / Atholl Tweedie
Tom Salvesen
Camarco (+44 (0) 203 757 4980)
Billy Clegg / Georgia Edmonds / Tom Huddart
In accordance with the guidelines of the AIM Market of the
London Stock Exchange, Pieter van der Groen, a geologist and
Eland's Chief Operating Officer, who has a geology degree from
Auckland University, a Masters degree in Petroleum Geology from the
University of Aberdeen and has over 25 years of relevant experience
in the upstream oil and gas industry and who is a member of the
Society of Petroleum Engineers and meets the criteria of qualified
person under the AIM guidance note for mining and oil and gas
companies, has reviewed and approved the technical information
contained in this announcement.
Notes to editors:
Eland Oil & Gas is an AIM-listed independent oil and gas
company focused on production and development in West Africa,
particularly the highly prolific Niger Delta region of Nigeria.
Through its joint venture company Elcrest, Eland's core asset is
OML 40 which is in the Northwest Niger Delta approximately 75km
northwest of Warri and has an area of 498km(2). In addition, the
Company has a 40% interest in the Ubima Field, onshore Niger Delta,
in the northern part of Rivers State.
The OML 40 licence holds gross 2P reserves of 83.2 mmbbls, gross
2C contingent resources of 41.2 mmbbls and a best estimate of 254.5
mmbbls of gross unrisked prospective resources. The Ubima field
holds gross 2P reserves of 2.4 mmbbls of oil and gross 2C resource
estimates of 31.1 mmbbl.
Net production figures relate to Elcrest Exploration and
Production Nigeria Ltd ("Elcrest"), Eland's joint venture company.
Production rates, when oil is exported via Forcados, are as
measured at the Opuama PD meter, are subject to reconciliation and
will differ from sales volumes.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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